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Foundry Networks Reports Record Fourth Quarter 2005 Financial Results

San Jose, CA – January 26, 2006 - Foundry Networks™, Inc. (Nasdaq: FDRY), today reported financial results for its fourth quarter and full year ended December 31, 2005.

The Company's revenue for the fourth quarter of 2005 was a record $116.1 million, up from $106.6 million in the third quarter of 2005, and $104.8 million in the fourth quarter of 2004. Net income was $20.6 million or $0.14 per diluted share, compared to net income of $16.0 million, or $0.11 per diluted share in the third quarter of 2005, and net income of $16.7 million, or $0.12 per diluted share in the fourth quarter of 2004.

Revenue for the full year ended December 31, 2005 was $403.9 million, compared to $409.1 million for 2004. Net income for 2005 was $56.0 million or $0.39 per diluted share, compared to net income of $48.0 million, or $0.34 per diluted share for 2004. Foundry's cash position at the end of 2005 was $746.4 million, compared to $617.4 million at the end of 2004, an increase of $129.0 million, most of which was generated from operating cash flow.

Demand for Foundry's newer products, such as the BigIron RX and FastIron Super-X family of Layer 2/3 switches made significant contributions to revenue in the fourth quarter. The BigIron RX, which began shipping in the third quarter, experienced particularly strong demand with chassis sales volume tripling compared to the third quarter. The introduction of these new products, in combination with the IMR and XMR MPLS routers, have created a more diverse product offering, which the Company anticipates will enable continued growth.

Growth was evident in all of the major sectors and regions. Foundry's U.S. enterprise and Asian markets delivered robust growth in the fourth quarter with Japan representing approximately 12% of revenue. The Company's business activity within the U.S. Federal Government vertical market remained stable with revenue increasing modestly on a sequential basis, and represented approximately 21% of Foundry's total revenue in the fourth quarter.

"We are delighted to conclude 2005 having set a new record for quarterly revenue," said Bobby Johnson, President and CEO of Foundry Networks. "During this past year, Foundry achieved other important milestones, including a record number of new product introductions, a record number of 10 Gigabit Ethernet and Power-over-Ethernet (PoE) ports shipped, and a significant increase in the number of new customers. Having refreshed our product portfolio and expanded our sales footprint, our focus going forward will be to continue to execute on our core objectives of profitable growth, product leadership, high-touch customer service and intelligent investment designed to create future opportunities. We believe the pursuit of these objectives will enable us to extend our competitive position and deliver long-term value to shareholders.

"I want to personally thank our employees for their contributions in 2005 and our customers for their continued support," 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, without limitation, the statement that our new products will enable continued growth.  Other forward-looking statements include statements by Mr. Johnson regarding the creation of future opportunities, the extension of the Company's competitive position, and delivery of long-term value to shareholders. 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, the difficulty of predicting quarterly financial results, our dependence on large purchases of products from certain customers/resellers, the staging and amounts of U.S. government contract awards, risks associated with international sales, results of ongoing litigation, the strength of the overall economy and the high-technology market in particular, competition, product development efforts, acceptance of Foundry's current and future products, and other factors listed in Foundry's most recent reports on Form 10-K, 10-Q, and 8-K. 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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