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Version 8.0 of the browser was the first major update since 2002 and was designed to offer internet users more security against spyware and phishing attacks from fake websites.
Netscape 8.0 is partly based on the increasingly popular open source Firefox browser, but it did not include a patch for scripting and remote hacking vulnerabilities addressed in Firefox 1.0.4.
Another vulnerability meant Netscape 8 could be compromised by malicious Gif files that could allow an attacker to gain control of a PC.
The security omissions led Netscape to release Netscape 8.0.1 just hours after Netscape 8.0 became available. The latest browser comes with both anti-phishing and anti-spyware features.
The browser aims to prevent spyware being installed on users' machines, so they will not have to rely on tools to remove it once it is on their PCs.
With phishing, it automatically adjusts its security settings while users surf the web.
The Netscape browser is downloaded about 15 million times a year. Netscape is hoping the updated version will help it make up lost ground on Firefox, which has been downloaded more than 50 million times since November.
Microsoft's Internet Explorer has about 90% of the browser market.