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Foundry Networks Announces Third Quarter Results

San Jose, CA – October 22, 2003 - Foundry Networks®, Inc. (Nasdaq: FDRY), today reported financial results for its third quarter ended September 30, 2003.

Revenues for the third quarter of 2003 increased to $101.7 million, compared to $95.7 million in the previous quarter, and $76.6 million in the same period last year. Foundry earned net income of $20.8 million, or $0.15 per diluted share in the third quarter, compared to net income of $16.8 million, or $0.13 per diluted share, in the prior quarter, and net income of $7.0 million, or $0.06 per diluted share, for the same period in 2002.

Revenues for the first nine months of 2003 were $288.5 million, as compared to $214.0 million for the same period last year, an increase of 35%. Net income for the first nine months of 2003 was $51.0 million or $0.38 per diluted share, compared to net income of $12.1 million or $0.10 per diluted share for the same period in 2002.

"Revenue strength was balanced across diverse verticals and geographies during the period," stated Bobby Johnson, President and CEO of Foundry Networks. "Revenue from the Federal Government remained strong, representing about 30% of Foundry's revenues during the quarter. Capital spending from customers in Japan and Korea also demonstrated resiliency and rebounded from prior quarter levels. In contrast to historical trends, European sales remained level during the seasonally slow summer months."

Mr. Johnson continued, "We also recorded revenue from an increasing span of products. We shipped and recognized revenue on our third generation 10 Gigabit Ethernet platform, the BigIron® MG8 router, commonly referred to as 'Mucho Grande'. We introduced new ServerIron products that include a new version of the TrafficWorks® IronWare® operating system and our ServerIron® Link Balancer. Additionally, we announced our wireless LAN strategy which integrates wireless technology into Foundry's existing enterprise network infrastructure products.

Through continued manufacturing cost controls and a stable pricing environment, we attained gross margins of 67%, our highest level ever. Additionally, our cash position continued to grow. We added $44 million to our cash balance and now have more than $455 million in cash and investments and we remain debt-free."

"Our entire organization continues to focus on reaching operational and financial milestones, increasing the Company's efficiency, and in general, executing on our plan," concluded Mr. 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.

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 Company's focus on reaching milestones, increasing efficiency and executing its plan. 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, product development efforts, and acceptance of Foundry's current and future products. 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 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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