Extreme Quarterly Results

SANTA CLARA, Calif. -- Extreme Networks, Inc., (Nasdaq: EXTR), a leader in Ethernet networking, today reported its third quarter results for the period ending March 31, 2002. Net revenue for the third quarter of fiscal 2002 was $111.1 million, compared to $109.1 million for the second quarter of fiscal 2002. On a pro forma basis Extreme Networks earned net income of $2.6 million, or $0.02 per share for the third quarter of fiscal 2002, compared with $2.0 million, or $0.02 per share for the second quarter of fiscal 2002. Actual net loss for the third quarter on a GAAP basis, which includes charges for impairment of acquired intangible assets, amortization of goodwill and intangible assets and deferred compensation, restructuring and one-time charges was $139.8 million or $(1.23) per share, compared to a loss of $10.7 million or $(0.09) per share for the second quarter of fiscal 2002. (See attached financial tables for reconciliation of GAAP and pro forma results.) "We are on track for achieving our strategic and operational financial goals, even during these challenging economic times," said Gordon Stitt, president and CEO, Extreme Networks. "During the quarter, we continued to add new key global accounts and expand our worldwide service capabilities, increasing our status as an established networking leader. We also improved our key financial metrics, including revenue, gross margin, operating profit, working capital and our cash position." Extreme Networks Inc.