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Foundry Networks Announces Second Quarter Results

Company Adds $60 Million of Cash to Balance Sheet in Quarter

San Jose, CA – July 23, 2003 - Foundry Networks, Inc. (Nasdaq: FDRY), today reported financial results for its second quarter ended June 30, 2003.

Revenues for the second quarter of 2003 increased to $95.7 million, compared to $91.1 million in the previous quarter, and $75.0 million in the same period last year, an increase of 5% and 28% respectively. Foundry earned net income of $16.8 million, or $0.13 per diluted share in the second quarter, compared to net income of $13.4 million, or $0.11 per diluted share, in the prior quarter, and net income of $4.0 million, or $0.03 per diluted share, for the same period in 2002.

Revenues for the first six months of 2003 were $186.9 million, which compares to $137.4 million for the first six months of 2002, an increase of 36%. Net income for the first six months of 2003 was $30.2 million or $0.23 per diluted share, compared to net income of $5.1 million or $0.04 per diluted share for the same period in 2002.

"As we guide Foundry towards long-term success, the Company continues to reach its short-term milestones," stated Bobby Johnson, President and CEO of Foundry Networks. "Solid execution during the second quarter was evident in many areas, including successful product ramps, improved gross margins, and a significant increase in our cash position."

"Our overall business with domestic enterprise customers rebounded from the seasonally slow first quarter, while the Federal government remained our most active vertical at roughly 30% of revenues in the June quarter. Always central to Foundry's strategy has been the pursuit of product leadership in both features and performance. This was demonstrated again in the second quarter with the announcement of the Terathon-based Mucho Grande platforms: the BigIron MG-8 and NetIron 40G for large enterprise and service providers, and initial shipments of our Power over Ethernet switches: the 2402PoE and 4802PoE for enterprise customers looking to deploy voice-over-IP or wireless solutions," concluded Johnson.

Conference Call
Foundry Networks will host a conference call today to further discuss these results at 2:00 p.m. Pacific Time.  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.

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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