SonicWALL, Inc. (NASDAQ: SNWL), today reported performance in the quarter ended June 30, 2008, with revenue of US$55.8 million, representing 19% growth over the second quarter of 2007. Cash flow from operations was US$5.5 million.

Net income for the second quarter of 2008 calculated in accordance with U.S. generally-accepted accounting principles (GAAP) was US$0.9 million, or US$0.02 per diluted share.  In comparison, GAAP net earnings for the second quarter of 2007 were US$3.6 million, or US$0.05 per diluted share.

"In a challenging economic environment, SonicWALL demonstrated strong execution," said Matt Medeiros, CEO of SonicWALL.  "The Company met revenue targets while making significant improvements in operating expense.  In addition, SonicWALL continues to deliver industry-leading enterprise security solutions that are already winning accolades from industry critics."

During the second quarter, SonicWALL spent US$46.1 million to repurchase US$5.8 million shares of its common stock on the open market.  Through June 30, the Company had spent US$199.2 million, against its current US$200 million authorization, to repurchase 25.8 million shares of stock.  As of the beginning of the third quarter, there was less than US$1 million remaining under the current authorization.

SonicWALL expects third quarter 2008 revenue to be in the range of US$53 million to $56 million.  The Company expects non-GAAP gross margin to be in the range of 71% to 72% of revenue.  SonicWALL expects earnings per share in the third quarter of 2008 to be in the range of $0.06 to $0.08 per diluted share on a non-GAAP basis.  On a GAAP basis, inclusive of a total of approximately $4.0 million, before taxes, in combined amortization of purchased intangibles assets, and share-based compensation expense, the Company expects earnings per share to be in the range of $0.01- $0.03.

Share- based compensation expense associated with the expensing of stock options is estimated to be approximately US$3.0 million for the third quarter of 2008.

SonicWALL expects revenue for the full year 2008 to be in the range of $220-230 million.  The Company expects non-GAAP earnings per share for the full year 2008 to be in the range of $0.25 to $0.30.  On a GAAP basis, inclusive of a total of approximately $17.0 million, before taxes, in combined amortization of purchased intangibles assets, restructuring charges, and share-based compensation expense, the Company expects earnings per share for the full year 2008 to be in the range of $0.06- $0.10.  Share-based compensation expense associated with the expensing of stock options is estimated to be approximately $11.0 million for the full year 2008.

About SonicWALL, Inc:
SonicWALL is committed to improving the performance and productivity of businesses of all sizes by engineering the cost and complexity out of running a secure network. Over one million SonicWALL appliances have been shipped through its global network of ten thousand channel partners to keep tens of millions of worldwide business computer users safe and in control of their data. SonicWALL’s award-winning solutions include network security, secure remote access, content security, backup and recovery, and policy and management technology. For more information, visit the company web site at http://www.sonicwall.com/.

Safe Harbor Regarding Forward-Looking Statements
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements include but are not limited to statements regarding the benefits of SonicWALL’s SSL VPN remote clientless access products. These forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. In addition, please see the "Risk Factors" described in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended December 31, 2006, for a more detailed description of the risks facing our business. All forward-looking statements included in this release are based upon information available to SonicWALL as of the date of the release, and we assume no obligation to update any such forward-looking statement.

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