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Foundry Networks Reports Third Quarter Financial Results

Company Achieves 11% Sequential Revenue Growth

Expanded Sales Force and New Products Gain Momentum

San Jose, CA - October 20, 2005 - Foundry Networks™, Inc. (Nasdaq: FDRY), today reported financial results for its third quarter ended September 30, 2005. 

Revenue for the third quarter of 2005 was $107.1 million, up from $96.6 million in the second quarter of 2005, and $102.5 million in the third quarter of 2004.  Net income was $16.3 million, or $0.11 per diluted share, in the third quarter of 2005, compared to net income of $9.6 million, or $0.07 per diluted share, in the second quarter of 2005, and a net loss of $3.6 million, or $0.03 loss per diluted share, in the third quarter of 2004.  Included in the Company's results for the third quarter of 2005 was a $2.6 million expense related to a patent cross-license agreement with IBM Corporation.

Revenue for the first nine months of 2005 was $288.3 million, compared to $304.4 million for the same period in 2004.  Net income for the first nine months of 2005 was $35.8 million, or $0.25 per diluted share, compared to net income of $31.3 million, or $0.22 per diluted share, for the same period in 2004.

Foundry's third quarter results reflect the investments made over the last several quarters, particularly in the Company's product portfolio and sales footprint.  Revenue from Foundry's new products including the BigIron® RX and FastIron® SuperX LAN switching families and the NetIron® IMR router family increased significantly during the period.  In particular, units of the BigIron RX, which began shipping in July, ramped quickly throughout the remainder of the quarter and were deployed in high profile, mission-critical locations, including U.S. Government research labs, premier universities and leading service providers.

Foundry's U.S. Federal Government revenue was seasonally strong, representing 22% of the Company's total revenue in the third quarter compared to 15% in the second quarter.  The level of business activity from domestic enterprise and Europe also increased during the period.  Overall, business from Asia was comparable to the prior quarter.

"As demonstrated by our financial results this quarter, the investment in our business is strengthening Foundry's competitive position," said Bobby Johnson, President and CEO of Foundry Networks.  "This quarter we achieved solid improvements in our revenue, gross margin and profitability.  We have increased our sales force, our technical and sales partnerships, and the depth and breadth of our product portfolio to drive long-term growth and profitability," 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 business trends, the Company's continued focus on investing in its business, its strengthening competitive position, and potential long-term growth and profitability. 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, unpredictable demand from the United States government, the strength of the overall economy and the high-technology market in particular, competition, product development efforts, continued expansion of our sales force, 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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