Netopia Reports Fourth Fiscal Quarter and Fiscal Year 2005 Results; Conference Call on November 11, 2005 Will Be Webcast and Available for Telephone Dial-In

Net loss for the fourth fiscal quarter was ($1.3) million or($0.05) per share, compared to a net loss of ($6.1) million or ($0.25)per share for the same period in the prior fiscal year. The net lossfor the fiscal year ended September 30, 2005 was ($7.1) million or($0.28) per share, compared to a net loss of ($8.8) million or ($0.37)per share for the fiscal year ended September 30, 2004.

"We have entered the new fiscal year with renewed enthusiasm,"said Alan Lefkof, Netopia's president and CEO. "We believe that ournew MiAVo family of VDSL2 and ADSL2+ bonded gateways as well as ourNBBS software for remote gateway management and provisioning can meetthe complex requirements of leading telecommunications carriers thatwill be launching new 'triple play' initiatives. Our focus now isdesign wins for these technologies with both current and newcustomers."

Note:

Netopia will host a conference call to discuss its results for thefourth fiscal quarter and fiscal year ended September 30, 2005. Theconference call will take place on Friday, November 11, 2005 at 8:30a.m. Eastern time (5:30 a.m. Pacific time). The conference call willbe broadcast live on the Internet and can be accessed by visitingNetopia's Web site at www.netopia.com. To join the telephoneconference, dial (913) 312-1293 and enter the pass code 8402440.

An archived recording of the conference call will be available onNetopia's Web site for one year, and by telephone from November 11 -18, 2005. To listen to the archived recording, dial (719) 457-0820 andenter the pass code 8402440, or go to Netopia's Web site.

About Netopia

Netopia, Inc. is a market leader in broadband customer premisesequipment, remote management software, and broadband services. Netopiaoffers carrier-class wired and wireless modems, routers, and gateways.Netopia gateways serve markets from residential throughenterprise-scale distributed businesses, and enable broadband accessfor voice, video, data, and other services. Netopia's Wi-FiCERTIFIED(TM) gateways feature 3-D Reach(R) technology for enhancedwireless range, security, and performance. Netopia's remote managementsoftware enables service provisioning, monitoring, and remote controlfor broadband gateways and personal computers, and is designed to meetthe requirements of a full range of users: individual-to-individual,carrier-to-customer, and help desk-to-users. Netopia's broadbandservices include Wi-Fi hot spots for local and nationwide networks ofsmall venues, Web site and remote control service hosting, andparental controls. Netopia has established strategic businessrelationships with leading carriers and broadband service providersincluding Belgacom, BellSouth, Covad Communications, EarthLink,eircom, Hong Kong Telecom/PCCW, MegaPath Networks, Netifice, SBCCommunications, Swisscom, and Verizon.

Headquartered in Emeryville, California, Netopia's common stock islisted for quotation on the OTC Bulletin Board (OTCBB) under thesymbol "NTPA". Further information about Netopia can be obtained viaphone (510) 420-7400, fax (510) 420-7601, or on the Web atwww.netopia.com.

Safe Harbor Statement under the Private Securities LitigationReform Act of 1995:

Portions of this release that are not statements of historicalfact may include forward-looking statements. Statements regardingNetopia, Inc.'s beliefs, plans, expectations or intentions regardingthe future are forward-looking statements, within the meaning ofSection 27A of the Securities Act of 1933, as amended, and Section 21Eof the Securities Exchange Act of 1934, as amended. All suchforward-looking statements are made pursuant to the safe harborprovisions of the Private Securities Litigation Reform Act of 1995.These forward-looking statements include statements concerning productdevelopment, anticipated new products and customers, growthopportunities, and future operating results. Netopia's actual resultscould differ materially. Factors that might cause a differenceinclude, but are not limited to: Netopia's continued ability to formkey relationships for our broadband products and services; Netopia'sability to enter into new distribution partnerships; Netopia's abilityto develop new broadband products and services in a timely manner;market acceptance of Netopia's broadband products and services;Netopia's ability to list its common stock on a Nasdaq Stock Market;Netopia's ability to resolve pending private securities litigationarising out of the restatement of Netopia's consolidated financialstatements in a timely and economic manner; Netopia's ability tocomplete the proposed settlement with the Securities and ExchangeCommission relating to the restatement of Netopia's consolidatedfinancial statements for certain prior periods; the pace ofdevelopment and market acceptance of Netopia's products and the marketfor broadband products and services generally; the highly competitivenature of Netopia's markets and competitive pricing pressures; theuncertainties associated with international operations; intensecompetition from third parties offering competitive broadband productsand services; and economic conditions generally. In addition, priorperiod-to-period comparisons of revenues are not necessarilyindicative of period-to-period comparative revenues in future periods.Prospective and current investors are cautioned not to place unduereliance on any forward-looking statements. Further, Netopia expresslydisclaims any obligation to revise or update any of theforward-looking statements contained herein to reflect future eventsor developments after the date hereof. Netopia does not undertake toupdate any oral or written forward looking-statement that may be madeby or on behalf of Netopia. For more information concerning Netopiaand risk factors that may affect Netopia's future results and maycause actual results to vary from results anticipated inforward-looking statements, including risk factors relating tosecurities litigation arising out of the restatements described inNetopia's Annual Report on Form 10-K for the fiscal year endedSeptember 30, 2004 and the formal investigation by the Securities andExchange Commission to determine whether any federal securities lawsmay have been violated, investors should review Netopia's publicfilings with the United States Securities and Exchange Commission,which are available by calling Netopia at (510) 420-7516 or online atwww.sec.gov.

All company names, brand names and product names are trademarks oftheir respective holder(s).

NETOPIA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)


Three months ended Year ended
September 30, September 30,
------------------- ---------------------
2005 2004 2005 2004
-------- --------- ---------- ----------
(unaudited) (unaudited) (audited)
REVENUES:
Broadband equipment $20,900 $22,276 $94,447 $85,702
Broadband software and
services 2,547 3,559 11,370 15,633
-------- --------- ---------- ----------
Total revenues 23,447 25,835 105,817 101,335

COST OF REVENUES:
Broadband equipment 14,633 17,471 69,540 63,251
Broadband software and
services 470 286 1,609 992
Amortization of
acquired technology 300 300 1,200 1,200
-------- --------- ---------- ----------
Total cost of revenues 15,403 18,057 72,349 65,443

GROSS PROFIT 8,044 7,778 33,468 35,892

OPERATING EXPENSES:
Research and development 3,346 3,974 13,355 15,828
Selling and marketing 4,467 5,266 18,716 20,528
General and administrative 1,653 3,556 8,438 7,147
Amortization of intangible
assets 86 86 345 345
Restructuring costs (58) 999 40 999
-------- --------- ---------- ----------
Total operating
expenses 9,494 13,881 40,894 44,847

OPERATING LOSS (1,450) (6,103) (7,426) (8,955)

Other income, net 100 31 359 224
-------- --------- ---------- ----------

NET LOSS BEFORE TAXES (1,350) (6,072) (7,067) (8,731)

Provision for income taxes (2) 13 66 78
-------- --------- ---------- ----------

NET LOSS $(1,348) $(6,085) $(7,133) $(8,809)
======== ========= ========== ==========


Basic and diluted net loss
per common share $ (0.05) $ (0.25) $ (0.28) $ (0.37)
======== ========= ========== ==========
Shares used in computing
basic and diluted net
loss per common share 25,241 24,490 25,093 23,573
======== ========= ========== ==========




NETOPIA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)


September 30,
-----------------------
2005 2004(1)
----------- ----------
(unaudited)
ASSETS
--------------------------------------------
Current assets:
Cash and cash equivalents $22,234 $23,973
Trade receivables, net 16,208 17,812
Inventories 7,996 6,280
Prepaid expenses and other current assets 1,102 1,226
----------- ----------
Total current assets 47,540 49,291
=========== ==========

Property and equipment, net 2,623 2,694
Intangible assets, net 4,037 5,684
Equity investment 1,032 1,032
Deposits and other assets 481 886
----------- ----------
TOTAL ASSETS $55,713 $59,587
=========== ==========


LIABILITIES AND STOCKHOLDERS' EQUITY
--------------------------------------------
Current liabilities $19,486 $18,051
Long-term liabilities 355 406
----------- ----------
Total liabilities 19,841 18,457

Stockholders' equity 35,872 41,130
----------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $55,713 $59,587
=========== ==========

(1) Derived from the audited consolidated balance sheets dated
September 30, 2004, included in Netopia, Inc.'s Annual Report on
Form 10-K for the fiscal year ended September 30, 2004.