1
                                  EXHIBIT 20.1

         Press Release, dated August 14, 1996, regarding the settlement of the
Whipsaw litigation.
   2
                    NETWORK APPLIANCE SETTLES WHIPSAW LAWSUIT


       MOUNTAIN VIEW, CA - AUGUST 14, 1996 - Network Appliance, Inc.
(NASDAQ:NTAP) today announced that it has settled a two-year-old, intellectual
property lawsuit brought against it by The Whipsaw Group. In connection with the
settlement, Network Appliance recorded a pre-tax charge of $4.3 million in the
quarter that ended July 26, 1996.

       The $4.3 million charge consists of a $3.5 million payment to the
plaintiffs and $800,000 in legal fees. The total settlement with the plaintiffs
consists of a single cash payment and releases the Company from all liabilities.
The Company has no future obligations to the plaintiffs.

       The lawsuit stemmed from claims that one of the founders of Network
Appliance misappropriated confidential information prior to founding the Company
in April 1992, from which the Company allegedly benefited. Network Appliance
denies any wrongdoing on its part or on the part of the founder, who left the
Company in March 1995. The case is described further in various Company
documents and financial filings, including its S-1, 10K and prospectus.

       Commenting on the settlement, Network Appliance President and Chief
Executive Officer Dan Warmenhoven said, "As confident as we are in the merits of
our defenses in this case, we chose not to endure the distractions and costs
involved in lengthy legal proceedings. It is in the best interests of our
shareholders to put this case behind us and focus all our attention on
productive management of our rapid growth."

       Network Appliance, also known as NetApp, supplies high-performance
network data access devices that provide fast, simple, reliable and
cost-effective file service for data-intensive network environments. Combining
specialized, proprietary software and standards-compliant hardware, the Company
pioneered the concept of the "network appliance," an extension of the industry
trend towards dedicated, specialized devices which perform a single networking
function, similar to the adoption of the router for network communications
management. Customers include leading organizations in the on-line services,
financial services, manufacturing and telecommunications industries, as well as
companies that design hardware and software. Products are available through the
Company's direct sales force and resellers worldwide.