SAN JOSE, Calif. -- Foundry Networks(TM), Inc. (Nasdaq:FDRY - news), a leader in high-performance end-to-end IP infrastructure networking products, today provided its financial outlook for the fourth quarter ending December 31, 2000. Based on current sales information reflecting reduced capital expenditures by Internet Service Providers and E-commerce Sites, the Company anticipates fourth quarter net revenue of $100 million to $110 million. Gross margins remain strong and are expected to be in the 62-64% range. Pretax operating profits are expected to be in the $20 million to $26 million range. Earnings per share for the fourth quarter, excluding non-cash charges for amortization of deferred stock compensation, are expected to be in the range $0.11 to $0.14 per diluted share, subject to final audit.

"These latest projections, modified from earlier higher projections, reflect a shift over the last few weeks in the pattern of communications infrastructure capital spending," said Bobby Johnson, Chief Executive Officer. "However, despite recent challenges in the industry, we think Foundry is very well positioned to build upon the price/performance benefits of our end-to-end IP infrastructure solutions. Foundry maintains industry-leading gross margins, which we believe will remain solid as the Company continually introduces innovative new products."

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