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Foundry Announces 11th Straight Quarter Of Profitability

San Jose, CA - October 24, 2001 - Foundry Networks®, Inc. (Nasdaq: FDRY), today reported financial results for its third quarter ended September 30, 2001.

Net revenue for the third quarter was $74.7 million, which compares to $113.2 million reported for the same period last year. Pro forma net income for the third quarter of 2001, excluding non-cash charges for amortization of deferred stock compensation, was $2.5 million or $0.02 per diluted share, compared to pro forma net income of $28.6 million or $0.23 per diluted share in the third quarter of 2000. This marks the eleventh consecutive quarter of profitability for the Company. The Company also continued to maintain a solid financial position, improving its cash position by $24 million during the third quarter of 2001 while remaining debt-free.

Net revenue for the first nine months of 2001 was $245.8 million, which compares to $272.0 million reported for the first nine months of 2000. Pro forma net income for the first nine months of 2001 was $16.1 million or $0.13 per diluted share, compared to pro forma net income of $72.7 million or $0.57 per share for the same period in 2000. "The Company-wide attention to our core fundamentals has enabled Foundry to endure the current economic environment," said Bobby Johnson, CEO and President of Foundry Networks. "Despite these challenging economic times, we are pleased to post our 11th consecutive quarter of profitability on both a GAAP (Generally Accepted Accounting Principles) and pro forma basis and now have accumulated over $104 million in retained earnings as a company. In addition, we continue to generate positive cash flows with approximately $284 million in cash and liquid investments."

The Board of Directors of the Company has authorized management to purchase up to $15 million dollars of its common stock pursuant to a stock repurchase program announced in January of this year. Such purchases may be made through open market transactions based upon market conditions and pursuant to the requirements of Rule 10b-18 of the Securities Exchange Act of 1934. To date, Foundry has not purchased any shares, and there can be no assurance that the Company will purchase any shares in the future.

Conference Call
Foundry Networks will host a conference call today to further discuss these results at 2:00 p.m. PDT. The call can be accessed via a webcast at www.foundrynet.com. A Web replay will also be available after the call at this same Web address.

Safe Harbor Statement
This press release contains forward looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and is subject to the safe harbor created by that section. The forward looking statements relate to the possibility that the Company will purchase up to $15M of its common stock. These forward looking statements are subject to risks and uncertainties that could cause actual events or results to differ materially from those stated or implied by our forward looking statements. These risks and uncertainties include the risk that the company may decide not to go forward with the repurchase program because of market conditions or other reasons, or decide not to commence the repurchase on October 29 because of market conditions or other reasons. As to risks pertaining to the availability of cash for the repurchase program and other risks and uncertainties which pertain to the Company's business, investors are cautioned to review the risks and uncertainties that are discussed in detail in the Company's most recent Quarterly Report on Form 10-Q and most recent Annual Report on Form 10-K available from Foundry Networks or from the SEC at www.sec.gov.

About Foundry Networks

Foundry Networks, Inc. (NASDAQ: FDRY) is a leading provider of high-performance enterprise and service provider switching, routing, security and Web traffic management solutions, including Layer 2/3 LAN switches, Layer 3 Backbone switches, Layer 4-7 application switches, wireless LAN and access points, metro routers and core routers. Foundry's customers include the world's premier ISPs, metro service providers, and enterprises, including e-commerce sites, universities, entertainment, health and wellness, government, financial and manufacturing companies. For more information about the company and its products, call 1.888.TURBOLAN or visit www.foundrynet.com.

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