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NETGEAR Enters Into Agreement To Acquire Select Assets Of Sierra Wireless AirCard Business



  NETGEAR Enters Into Agreement To Acquire Select Assets Of Sierra Wireless
                               AirCard Business

Acquisition accelerates mobile initiative of NETGEAR service provider business
and will be immediately accretive to earnings upon closing

PR Newswire

SAN JOSE, Calif., Jan. 28, 2013

SAN JOSE, Calif., Jan. 28, 2013 /PRNewswire/ -- NETGEAR®, Inc. (NASDAQGM:
NTGR), a global networking company that delivers innovative products to
consumers, businesses and service providers, today announced that on January
28, 2013, it entered into an agreement to acquire select assets and operations
of the Sierra Wireless, Inc. ("Sierra Wireless") AirCard® business. NETGEAR
management will hold an investor conference call tomorrow, January 29, 2013 at
8:30 a.m. EST (5:30 a.m. PST) to discuss the agreement.

On January 28, 2013, NETGEAR entered into an Asset Purchase Agreement with
Sierra Wireless to acquire the operations of the AirCard business, including
customer relationships, certain intellectual property, inventory and fixed
assets of the Sierra Wireless AirCard business. The purchase price is
approximately $138 million in cash. The final purchase price is subject to
adjustments to be made after closing. The transaction, which is subject to
customary closing conditions, including the receipt of necessary regulatory
clearances, is expected to close by the end of NETGEAR's fiscal first quarter.

Patrick Lo, Chairman and Chief Executive Officer of NETGEAR, commented, "We
are excited to announce that we have entered into an agreement to acquire
select assets of the Sierra Wireless AirCard business. We expect this
acquisition will accelerate the mobile initiative of our service provider
business unit to become a global leader in providing the latest in LTE data
networking access devices. We believe that LTE network technology represents a
huge market opportunity, especially in emerging markets and rural areas where
high speed broadband Internet access is currently limited. This asset
acquisition reinforces NETGEAR's commitment to develop innovative products for
the next generation of Internet service providers"

Christine Gorjanc, Chief Financial Officer of NETGEAR, said, "We are excited
about the opportunities this transaction gives us, and we expect this
acquisition to be accretive to non-GAAP earnings in the first full quarter
that NETGEAR operates the AirCard business. Based on current information, the
business we are acquiring has a 12 month trailing net revenue run rate of
approximately $247 million through December 2012."

"We are also taking this opportunity to update NETGEAR's estimates for the
recently completed fourth quarter of 2012," Ms. Gorjanc continued. "We
currently expect to achieve net revenue of $305 million to $310 million and
non-GAAP operating margin within the 11% to 11.5% range, both of which are
within the guidance we provided last quarter for net revenue and non-GAAP
operating margin, respectively. The non-GAAP tax rate for the fourth quarter
of 2012 is currently expected to be approximately 40%, which is higher than
the approximately 33% that we had previously estimated. We will provide all
the details on our 2012 fourth quarter and year-end results in our normally
scheduled earnings release in February."

With the completion of the asset acquisition, approximately 160 employees
located primarily in Carlsbad, California and Richmond, British Columbia are
expected to be integrated into NETGEAR's service provider business under
Michael Clegg, Senior Vice President and General Manager of NETGEAR's service
provider business unit. 

Investor Conference Call / Webcast Details
NETGEAR will review the asset acquisition tomorrow, Tuesday, January 29, 2013
at 8:30 a.m. EST (5:30 a.m. PST). The dial-in number for the live audio call
is (201) 689-8560. A live webcast of the conference call will be available on
NETGEAR's website at http://investor.netgear.com.  A replay of the call will
be available 3 hours following the call through midnight EST (9 p.m. PST) on
Tuesday, February 5, 2013 by telephone at (858) 384-5517 and via the web at
http://investor.netgear.com.  The account number to access the phone replay is
408122.

About NETGEAR, Inc. 
NETGEAR (NASDAQGM: NTGR) is a global networking company that delivers
innovative products to consumers, businesses and service providers. For
consumers, the company makes high performance, dependable and easy to use home
networking, storage and digital media products to connect people with the
Internet and their content and devices. For businesses, NETGEAR provides
networking, storage and security solutions without the cost and complexity of
Big IT. The company also supplies top service providers with retail proven,
whole home solutions for their customers. NETGEAR products are built on a
variety of proven technologies such as wireless, Ethernet and powerline, with
a focus on reliability and ease-of-use. NETGEAR products are sold in
approximately 32,000 retail locations around the globe, and through
approximately 40,000 value-added resellers. The company's headquarters are in
San Jose, Calif., with additional offices in over 25 countries. NETGEAR is an
ENERGY STAR partner. More information is available at
http://investor.netgear.com or by calling (408) 907-8000. Connect with NETGEAR
at http://twitter.com/NETGEAR and http://www.facebook.com/NETGEAR.

© 2013 NETGEAR, Inc. NETGEAR and the NETGEAR logo are trademarks or registered
trademarks of NETGEAR, Inc. and its affiliates in the United States and/or
other countries. Other brand and product names are trademarks or registered
trademarks of their respective holders.  The information contained herein is
subject to change without notice. NETGEAR shall not be liable for technical or
editorial errors or omissions contained herein.  All rights reserved. 

Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995 for NETGEAR, Inc.: 
This press release contains forward-looking statements within the meaning of
the U.S. Private Securities Litigation Reform Act of 1995. Specifically,
statements concerning the completion of the acquisition of certain assets of
the AirCard business of Sierra Wireless, Inc., the timing of the completion of
the acquisition, the acceleration of the mobile initiative in NETGEAR's
service provider business unit, the market opportunity for LTE network
technology, the accretive nature of the acquisition to NETGEAR's earnings,
expectations of achieving the guidance for NETGEAR's fourth quarter 2012 net
revenue and non-GAAP operating margin, expectations on the fourth quarter 2012
non-GAAP tax rate, and the number of employees expected to join NETGEAR as a
result of the acquisition are forward-looking statements within the meaning of
the Safe Harbor. These statements are based on management's current
expectations and are subject to certain risks and uncertainties, including,
without limitation, the following:  NETGEAR may not be successful in
integrating the AirCard business of Sierra Wireless, including Sierra
Wireless's products, technology and personnel; NETGEAR may not be able to
retain Sierra Wireless's existing customer base, the actual price, performance
and ease of use of Sierra Wireless's products may not meet the price,
performance and ease of use requirements of customers; product performance may
be adversely affected by real world operating conditions; the ability of
NETGEAR to market and sell its products and technology, the impact and pricing
of competing products and the introduction of alternative technological
solutions. Further information on potential risk factors that could affect
NETGEAR and its business are detailed in the Company's periodic filings with
the Securities and Exchange Commission, including, but not limited to, those
risks and uncertainties listed in the section entitled "Part II - Item 1A.
Risk Factors," pages 46 through 65, in the Company's quarterly report on Form
10-Q for the fiscal quarter ended September 30, 2012, filed with the
Securities and Exchange Commission on November 6, 2012.  NETGEAR undertakes no
obligation to release publicly any revisions to any forward-looking statements
contained herein to reflect events or circumstances after the date hereof or
to reflect the occurrence of unanticipated events.

Contact: 
NETGEAR Investor Relations 
Christopher Genualdi
netgearIR@netgear.com 
(408) 890-3520

SOURCE NETGEAR, Inc.

Website: http://www.netgear.com
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