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Foundry Networks Reports Second Quarter Financial Results

San Jose, CA – July 21, 2005 - Foundry Networks™, Inc. (Nasdaq: FDRY), today reported financial results for its second quarter ended June 30, 2005.

Revenue for the second quarter of 2005 was $96.6 million, compared to $84.6 million for the first quarter of 2005, and $97.8 million for the second quarter of 2004. Foundry earned net income of $9.6 million, or $0.07 per diluted share, in the second quarter of 2005, compared to net income of $9.9 million, or $0.07 per diluted share, in the first quarter of 2005, and net income of $15.0 million, or $0.11 per diluted share, in the second quarter of 2004.

Revenue for the first six months of 2005 was $181.2 million, compared to $201.8 million for the first six months of 2004. Net income for the first six months of 2005 was $19.5 million, or $0.14 per diluted share, compared to net income of $34.9 million, or $0.24 per diluted share, for the same period in 2004.

In the second quarter, the Company's enterprise business delivered strong performance and improved significantly from the prior quarter in both the U.S. and Europe. Revenue from the U.S. Federal Government remained flat in absolute dollars, but declined as a percentage of total revenues to 15% in the second quarter.

"We are pleased with the sharp rebound achieved in our enterprise business during the second quarter of 2005," said Bobby Johnson, President and CEO of Foundry Networks. "Our products and technology continue to receive validation in the marketplace. The BigIron® RX platform, which we announced in the second quarter, won "Best of Show" in the LAN Infrastructure category at both the N+I tradeshow in Las Vegas and Tokyo. In addition, the RX platform also won "Best of Interop Grand Prize" at the Las Vegas tradeshow. The initial response to these new products, as well as our new MPLS routers and Layer 4-7 products, has been very positive.

"Indicative of our success in the second quarter was strong growth in overall port shipments. In the second quarter of 2005, we shipped record levels of 10-Gig Ethernet, Layer 4-7, and Power-over-Ethernet ports. Moreover, on a sequential basis, our port shipments of 10-Gig Ethernet grew 54%, Gig Ethernet-over-Copper grew 72%, and Power-over-Ethernet grew over 220%, all achieving record highs.

Outlook
"Although we are pleased with the improvement in many segments of our business, we continue to experience limited visibility in the U.S. Federal Government vertical market, historically an important segment of our business. Given our strong second quarter performance and based on the level of business activity thus far in the current period, we are increasingly optimistic about the second half of 2005. We believe our investments in the R&D and sales organizations have strengthened Foundry's competitive position and should enable us to capitalize on the market opportunities ahead," 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 positive customer reaction to new product introductions, the extent and sustainability of our improved results, our strengthened competitive position, and our ability to capitalize on future market opportunities. 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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