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Netgear's Lo: High Hopes: Page 5 of 6

PL: One major security feature we're going to introduce in the late third quarter or early fourth quarter is called AutoCell technology, which can provide automatic transmission controls and automatic load balancing so VARs don't need to worry about how many access points they should put in. They should put in the maximum number of access points that the end users could afford so that they could have the maximum coverage. The other advantage of this is what we call a stealth mode security. Those access points will control the power so that wireless access will not spill over beyond the building. So people in the parking lot will not be able to see the access point.

CRN: You have mentioned firewalls as an opportunity for VARs. What can VARs expect to see from Netgear in that space?

PL: With firewalls, we believe that there's tremendous opportunity. So far we are only competing at the very low end. If we look at the spectrum today, for people providing firewalls to companies with up to 250 users, we're basically talking about us, talking about WatchGuard and SonicWall. When we look at the price points, both WatchGuard and SonicWall start at $400-$500. So there's nothing below that. We're filling that void. We have firewalls as cheap as $99 in two VPN configuration. Then we go to eight VPN with $150 and then we go to 50 VP with about $229 and then 100 VPN to about $300. Next, we are going to provide high-end firewalls up to $500 by the end of this year so we're kind of getting to the SonicWall and WatchGuard sphere. And it will include the intrusion detection capability, antivirus tools and spam policy enforcement as well. So from a feature standpoint, we'll be toe-to-toe with WatchGuard and SonicWall by then.

CRN: Will Netgear be offering any software to manage networks?

PL: By early next year, we'll also come out with management software that will manage wireless access points, the firewall and the switches, so our resellers could put together a complete solution with more software for more installations with more consulting they can sell to the customers.