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Enterasys Networks Files Patent Infringement Lawsuit Against Foundry Networks and Extreme Networks

  • 21 June, 2005 16:13

<p>Enterasys Networks, Inc. (NYSE: ETS), the Secure Networks Company™, announced that it filed a patent infringement complaint today against Extreme Networks, Inc. and Foundry Networks, Inc. in the United States District Court for the District of Massachusetts. The complaint alleges that both Extreme and Foundry have been and are infringing six Enterasys patents by making and selling networking products that utilize patented Enterasys technology. The patents at issue in the case relate to virtual local area networking, multiprotocol routing, and several other networking technologies.</p>
<p>Enterasys Networks has made significant investments in research and development, delivering a continuous flow of industry innovations and today owns a wide array of networking and related patents spanning 20 years of development. Enterasys Networks currently holds more than 640 issued and pending patents worldwide, with more than a dozen new U.S. patent filings made within the last year. Enterasys filed this action as part of its ongoing licensing program, under which Enterasys vigorously protects its position as an industry pioneer in secure networking technology. Enterasys is being represented in the case by Robins, Kaplan Miller &amp; Ciresi LLP, a nationally recognized intellectual property litigation firm.</p>
<p>“Enterasys has the leading secure data networking product and solution portfolio, and we continue to invest in innovative new technologies and solutions to expand our offerings,” said Gerry Haines, executive vice president of strategic affairs. “Our determination to protect our innovations, and to benefit from the significant value we have created in the form of our intellectual property, reflects our commitment to our customers, partners, and our shareholders.”</p>
<p>The Enterasys Secure Networks Advantage</p>
<p>Enterasys’ industry-leading Secure Networks™ technology and solutions provide the highest level of infrastructure security available today. Secure Networks delivers the most granular level of security, providing visibility and control down to the network device, individual user and application level. This enables enterprises to quickly and easily detect, assess, locate and protect against attacks. This unmatched security comes from the integrated policy-based management software architecture that works with the embedded security capabilities Enterasys designs into its entire product line. This unique approach offers significant operational and business benefits, unmatched by vendor offerings that add hardware or software to multiple network access points in an attempt to increase security. In fact, Secure Networks technology can even make networks with competitors’ equipment more secure.</p>
<p>About Enterasys Networks</p>
<p>Enterasys Networks is the Secure Networks Company, providing enterprise customers with innovative network infrastructure products, services and solutions that deliver the security, productivity and adaptability benefits required by Global 2000 organizations. For more information on Enterasys Secure Networks and the company’s products, including multilayer switches, core routers, WAN routers, wireless LANs, network management, and intrusion defense systems, visit</p>
<p>For more editorial information please contact: Pru Quinlan at Einsteinz Communications on (02) 9965 7227</p>
<p>This news release contains forward-looking statements regarding future events, activities and financial performance, such as management's expectations regarding future revenue and cash flow; strategic relationships and market opportunities; product development; and other business strategies and objectives. These statements may be identified with such words as "we expect," "we believe," "we anticipate," or similar indications of future expectations. These statements are neither promises nor guarantees, and actual future financial performance, events and activities may differ materially. Readers are cautioned not to place undue reliance on these statements, which speak only as of the date hereof. We expressly disclaim any obligation to update such statements publicly to reflect changes in the expectations, assumptions, events or circumstances on which such statements may be based or that may affect the likelihood that actual results will differ materially.</p>
<p>Some risks and uncertainties that may cause actual results to differ materially from these forward-looking statements include, but are not limited to: worldwide and regional economic uncertainty and recent political and social turmoil may continue to negatively affect our business and revenue; we have a history of losses in recent years and may not operate profitably in the future; our quarterly operating results may fluctuate, which could cause us to fail to meet quarterly operating targets and result in a decline in our stock price; we earn a substantial portion of our revenue for each quarter in the last month of each quarter, which reduces our ability to accurately forecast our quarterly results and increases the risk that we will be unable to achieve previously forecasted results; we continue to introduce new products, and if our customers delay product purchases or choose alternative solutions, or if sales of new products are not sufficient to offset declines in sales of older products, our revenue could decline, we may incur excess and obsolete inventory charges, and our financial condition could be harmed; we may be unable to upgrade our indirect distribution channels or otherwise enhance our selling capabilities, which may hinder our ability to grow our customer base and increase our revenue; we have experienced significant changes in senior management and our current management team has been together for only a limited time, which could limit our ability to achieve our objectives and effectively operate our business; there is intense competition in the market for enterprise network equipment, which could prevent us from increasing our revenue and achieving profitability; a portion of the enterprises we sell to rely in whole or in part on public funding and often face significant budgetary pressure, and if these customers must delay, reduce or forego purchasing from us, our revenues could be harmed; we depend upon a limited number of contract manufacturers for substantially all of our manufacturing requirements, and the loss of any of our primary contract manufacturers would impair our ability to meet the demands of our customers; and those additional risks and uncertainties discussed in our most recent filings with the Securities and Exchange Commission, including our quarterly report on Form 10-Q for the fiscal quarter ended April 2, 2005.</p>

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