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Foundry Networks Announces Fourth Quarter Results

San Jose, CA - January 29, 2003 - Foundry Networks™, Inc. (Nasdaq: FDRY), today reported financial results for its fourth quarter and year ended December 31, 2002.

Net revenue for the fourth quarter of 2002 increased to $86.7 million, compared to $76.6 million in the third quarter, and to $65.4 million in the same period last year. Foundry earned net income of $10.5 million or $0.08 per diluted share in the December 2002 quarter, compared with net income of $7.0 million or $0.06 per diluted share in the prior quarter, and a net loss of $10.7 million or ($0.09) per diluted share for the same period in 2001.

Net revenue for 2002 was $300.7 million, compared to $311.2 million in 2001. Despite slightly lower revenue in 2002, the Company delivered net income of $22.5 million or $0.18 per diluted share for the year, compared to net income of $2.9 million or $0.02 per diluted share for 2001. This represents Foundry's fourth consecutive year of profitability.

"It is through the dedication of every Foundry employee worldwide that we continue to successfully execute against our business model," said Bobby Johnson, CEO and President of Foundry Networks. "Our improving financial results reflect the ongoing success of our industry leading products. We experienced growth in all our core vertical markets driven by both our JetCore and 10-Gigabit Ethernet products. Additionally, business activity improved across all regions, but was especially robust in Europe and Asia.

"Throughout 2002, our core focus was on growth with profitability, product leadership in features and performance, strategic high-quality customer service, and intelligent investment in our infrastructure. By staying committed to our core fundamentals in 2003, we believe we will be well positioned for even stronger growth once the global economy improves," concluded Johnson.

Conference Call
Foundry Networks will host a conference call today to further discuss these results at 2:00 p.m. PST. The call can be accessed via a webcast at www.foundrynetworks.com. A Web replay will also be available for approximately 90 days 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. These forward-looking statements include statements by Mr. Johnson relating to the ongoing success of the Company's products and the Company's potential for stronger growth in the event of an improved global economy. The forward-looking statements in this press release are subject to a number of risks and uncertainties, including the strength of the overall economy and the high-technology market in particular, competition, continued demand for Internet related equipment and acceptance of Foundry's current and future products, as well as potential order cancellations. Actual results could differ materially from those projected in our forward-looking statements. Investors should review the risk factors described in more detail in our most recent Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q available free of charge from Foundry at www.foundrynetworks.com or from the SEC at www.sec.gov. Foundry assumes no obligation to update the forward-looking statements contained in this press release.

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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