SANTA CLARA, Calif. -- Riverstone Networks, Inc., (Nasdaq:RSTN), a leader in metropolitan area networking, today announced that it expects revenues for the fourth quarter ending March 2, 2002 to be approximately $50 million to $54 million. Based on these revenues, the Company anticipates it will breakeven or have a slight loss on a pro forma basis. These pro forma results exclude fourth quarter charges, as well as amortization of goodwill and stock compensation expense. The Company also announced that it would reduce its expenses, including workforce reductions, resulting in an approximate 10 percent reduction in the Company's overall cost structure in the first quarter of fiscal 2003, which ends June 1, 2002. The Company expects to take charges in the fourth quarter totaling approximately $26 million to $30 million, consisting of asset impairments, write downs in equity investments, charges related to discontinued products and costs associated with workforce reductions. "We continue to focus on our financial metrics and remain committed to long-term profitability," said Romulus Pereira, President and CEO of Riverstone Networks. "We also remain committed to our carrier customers and to providing them with network infrastructure that converts raw bandwidth into profitable services." Riverstone Networks Inc.