Enterasys announces federal and state courts have approved settlement of 2002 shareholder lawsuits

December 22, 2003

1 Min Read

ANDOVER, Mass. -- Enterasys Networks Inc. (NYSE: ETS - News) announced today that on Friday, December 19, 2003, the United States District Court for the District of New Hampshire approved the settlement of the outstanding shareholder class action litigation filed in connection with the Company's restatement of financial results for the 2001 fiscal and transition years against Enterasys, its directors and former officers. In addition, on Thursday, December 18, 2003, the New Hampshire Superior Court, Rockingham County, approved the settlement of the outstanding state derivative actions filed on behalf of Enterasys in connection with the Company's restatement of financial results for the 2001 fiscal and transition years. The settlements, which were announced on October 16, 2003, do not reflect any admission of wrongdoing by Enterasys or its directors or former officers.

As part of the settlement, Enterasys will issue approximately 8.7 million shares of its common stock to claimants represented in the lawsuits. In its third quarter of fiscal 2003, Enterasys recorded a net charge of $15.9 million or $.08 per share, in connection with the various settlements.

Enterasys Networks Inc.

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