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To: stock bull who wrote (174645)	4/6/2005 4:02:44 PM
From: William F. Wager, Jr.	Read Replies (1) \| Respond to of 176388

UPDATE: Network Appliance Up After Announcing IBM Deal... DOW JONES NEWSWIRES April 6, 2005 11:21 a.m. (Adds CEO comments in paragraph 6 and updates stock price). By Donna Fuscaldo Of DOW JONES NEWSWIRES CHARLOTTE -- Shares of storage maker Network Appliance Inc. (NTAP) were up 4.5% Wednesday after the company announced an alliance with International Business Machines Corp. (IBM). The partnership, which the two companies made public Wednesday, calls for IBM to resell Network Appliance gear under the IBM brand name. Meanwhile, IBM's storage tape products and its Tivoli software will be the preferred products offered to Network Appliance customers. Financial terms of the deal were not disclosed. News of the alliance recently sent shares of Network Appliance up $1.22, to $28.43, on volume of 5 million. Average daily volume is 5.5 million. Les Santiago, an analyst at Piper Jaffray, said the partnership, which he thinks is in response to competitor EMC Corp.'s (EMC) alliance with Cisco Systems Inc. (CSCO), will give Network Appliance access to IBM's "strong reach," particularly in Europe and Asia. The analyst said the deal is a "strong win-win" for both companies. In a press release, Network Appliance Chief Executive Dan Warmenhoven said, "We expect this relationship to be mutually beneficial long-term as we roll out our joint solutions over the coming year." In a subsequent interview, Warmenhoven said the deal with IBM "extends our market reach into accounts we're not in, into countries we're not in and through channels we're not in." The executive, who also would not disclose financial terms, acknowledged the IBM alliance is aimed at taking on competitor EMC. In January, EMC and Cisco announced that Cisco would begin selling EMC's data storage equipment starting in the second quarter. According to Piper Jaffray's Santiago, who doesn't own shares of Network Appliance, the alliance with IBM could also be a result of the potential for EMC to expand its alliance with computer maker Dell Inc. (DELL). Piper Jaffray intends to seek an investment banking relationship with Network Appliance. -By Donna Fuscaldo, Dow Jones Newswires; 704-371-4263; donna.fuscaldo@dowjones.com