INTERCONNECTS

SAN JOSE, Calif. -- Foundry Networks(TM), Inc. reported financial results for its third quarter ended September 30, 2002. Gross Margin and Profit Margins Reach Highest Levels of the Year. Net revenue for the third quarter increased to $76.6 million, compared to $75.0 million for the second quarter of 2002, and $74.7 million for the third quarter of 2001. Foundry Networks earned net income of $7.0 million, or $0.06 per diluted share in the third quarter of 2002, compared with net income of $4.0 million, or $0.03 per share in the second quarter of 2002, and net income of $1.9 million or $0.02 per share during the third quarter of 2001. "The third quarter was a period of solid execution for Foundry," said Bobby Johnson, President & CEO of Foundry Networks. "Both gross margins and net margins reached their highest levels of 2002, and we improved our backlog and book-to-bill metrics." Mr. Johnson added, "While we remain very optimistic about Foundry's longer-term prospects, navigating the current economic environment requires us to focus our day-to-day efforts on intelligently pursuing new customers, as well as creatively serving existing accounts. We continue to maintain a cost-efficient organization, all the while investing in product and corporate development designed to strengthen our market position."