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Foundry Networks Reports First Quarter Financial Results

San Jose, CA – April 21, 2005 - Foundry Networks®, Inc. (Nasdaq: FDRY), today reported financial results for its first quarter ended March 31, 2005.

Revenues for the first quarter of 2005 were $84.6 million, compared to $104.8 million for the fourth quarter of 2004, and $104.0 million for the first quarter of 2004. Net income was $9.9 million, or $0.07 per diluted share, in the first quarter of 2005, compared to net income of $16.7 million, or $0.12 per diluted share, in the fourth quarter of 2004, and net income of $19.9 million, or $0.14 per diluted share, in the first quarter of 2004.

During the quarter, the Company's business from U.S. enterprise customers declined from the levels achieved in the previous quarter. In addition, revenue from the U.S. Federal Government, which represented approximately 23% of Foundry's revenue last quarter, declined to 17% of revenue in the first quarter as the pace of government IT procurement continued to decline. Partially offsetting these declines was a rebound in our revenue from Japan, which was up 17% sequentially. Our cash balance at the end of the first quarter was a record high of $656.5 million, an increase of $39.1 million from the December quarter.

"We continue to maintain Foundry's price-performance leadership in the network infrastructure market," said Bobby Johnson, President and CEO of Foundry Networks. "In the first quarter, we announced and shipped several significant new products, including our newest Layer 3 LAN infrastructure platform, the FastIron® Super X™, our newest metro router, the NetIron® Internet Metro Router™ (IMR™), and our Layer 4-7 SSL Offload appliance, the ServerIronSA®. We are pleased with the initial traction of these new platforms, particularly the IMR™, which generated a level of interest beyond our expectations.

"In the second quarter of 2005, we will announce additional significant new products addressing our core markets: LAN switching, Internet routing, and Layer 4-7 Application Traffic Management. We firmly believe the 10-Gigabit Ethernet, Layer 4-7, and router markets remain long-term growth markets.

Outlook
"Given our reduced visibility in the current U.S. Federal Government market and the recent unexpected sluggishness of enterprise IT spending, we believe it is prudent to suspend providing revenue and EPS guidance. We hope to begin providing guidance again, no later than the fourth quarter of this year," 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.

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 regarding price-performance leadership in the networking market, new product introductions and customer reaction to such products, the future announcement of new products, and the long-term growth prospects for certain of the Company's products. The forward-looking statements in this press release are subject to a number of risks and uncertainties which could cause actual results to differ materially, including, without limitation, our dependence on large purchases of products from certain customers/resellers, 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, 10-Q and other SEC reports 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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