Securities and Exchange Commission Approves Settlements with Netopia and Netopia's President and CEO; Settlements Consistent with Previously Announced Offers of Settlement

Netopia, Inc. (OTCBB:NTPA), a market leader in broadbandgateways and remote device management software, today announced thatthe Securities and Exchange Commission had instituted andsimultaneously settled an administrative cease-and-desist proceedingagainst Netopia. Without admitting or denying the Commission'sfindings, Netopia has agreed to cease and desist from futureviolations of the corporate reporting, books and records and internalcontrols provisions of the federal securities laws. The settlement isconsistent with Netopia's announcement on July 22, 2005 that it hadsubmitted an offer of settlement to the staff of the Division ofEnforcement of the Securities and Exchange Commission, to resolve aninvestigation into Netopia's disclosures and accounting practices,primarily related to Netopia's restatement of its financial statementsfor the fiscal years ended September 30, 2003 and 2002.

Netopia also announced that the Securities and Exchange Commissionhad filed and simultaneously settled charges against Alan B. Lefkof,Netopia's President and Chief Executive Officer. Without admitting ordenying the Commission's allegations, Mr. Lefkof has agreed to consentto the entry of an order with respect to violations of the federalsecurities laws, in connection with a Report on Form 8-K and exhibitfurnished to the Securities and Exchange Commission on July 6, 2004.Mr. Lefkof also has agreed to pay a civil penalty. The settlement isconsistent with Netopia's announcement on July 22, 2005 that Mr.Lefkof had submitted an offer of settlement to the staff of theDivision of Enforcement of the Securities and Exchange Commission.

"Netopia is pleased that the Securities and Exchange Commissionnow has approved the offers of settlement made by Netopia and Mr.Lefkof in July 2005," said Charles Constanti, Netopia's Vice Presidentand Chief Financial Officer. "Netopia believes that these settlementsare an important step in putting behind us the events related to therestatement of financial statements for prior years. Netopia and Mr.Lefkof now can devote full attention to providing industry-leadingbroadband equipment and software to telcos worldwide."

About Netopia

Netopia, Inc. is a market leader in high-performance broadbandcustomer-premises networking equipment and carrier-class software forthe remote management of broadband services and equipment. Netopia'sgateways feature advanced technology for triple play and IPTV servicesand remote manageability to ensure service delivery. Netopia alsooffers remote device management and broadband-enabled services andsoftware for carriers, service providers, and enterprises, enablingsupport and value-added services across the home or business network.Netopia has established strategic distribution relationships withleading carriers and broadband service providers, including AT&T(formerly SBC Communications), BellSouth, Covad Communications,eircom, Swisscom and Verizon.

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

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