Enterasys Networks Holds Americas Partner Conference to Drive Secure N

    Business Editors/High-Tech Editors

    ANDOVER, Mass.--(BUSINESS WIRE)--Jan. 28, 2005--Enterasys Networks(R) (NYSE: ETS), the Secure Networks Company(TM), held a highly successful annual Americas Partner Conference last week where it honored top-performing partners for 2004 and worked with approximately 150 partners from 68 organizations to drive greater success in 2005.
    "We foresee revenue growth in 2005 driven by our unique Secure Networks solutions and our strong partners," said Mark Aslett, president and COO of Enterasys Networks. "As a result of the investments we have made in our partner program, we have continued to grow total aggregate revenue from global partners, including Lucent, Siemens, Dell, IBM and EDS. This growth demonstrates the strength of our products and solutions as well as our increased ability to execute our plan and drive incremental revenue through our channel partners."
    The conference featured a Solution Pavilion to give partners a fresh look at the latest industry-leading Secure Networks products and solutions. "The highlight was the new Matrix X core router, which our partners are very enthusiastic about. The Matrix X, which will ship on schedule in the current quarter, completes the end-to-end refresh of our Secure Networks offerings," said Aslett.
    Enterasys recognized several partners for excellent performance in each of the company's North American sales regions as well as overall performance. Award winners included Lucent Technologies, Inc., Siemens, and Microtech Information Systems.

    Lucent Technologies--Overall Award Winner

    "Lucent is honored to be named one of Enterasys' Best Business Partners," said Liz King, vice president of Strategic Alliances and New Business Development for Lucent Technologies. "Through our global alliance with Enterasys, we are tremendously encouraged by the great potential we have built together to bring the best-in-class Secure Networks solution to our joint customers."
    Anthony Coronato, director of Strategic Alliances, Lucent Worldwide Services, said, "We selected Enterasys' Secure Networks to complement Lucent's world-class multivendor services and integrated offerings, thus helping enterprises achieve their primary business goal of protecting crucial data from internal and external security threats."

    Microtech Information Systems--Overall and New York Regional Award Winner

    "Enterasys set the stage for a strong 2005. The conference reaffirmed Microtech's belief that Secure Networks is the key to successful deployments in the enterprise space. It is obvious that Enterasys is committed to continuing its tradition of unparalleled engineering skill and active partner support. We look forward to even greater success this year."--John Gaudu, president

    CompuNET International--North Central (U.S.) Regional Award Winner

    "The conference will help CompuNET achieve a surge in new business this year. The energy of the entire Enterasys team was noticeable and appreciated. The message to us was exactly what we wanted to hear and delivered in a manner that demonstrated the sincerity behind the words. We expect a terrific 2005 because of it."--Don Helmstetter, CEO and president

    Comm Solutions Company--East Central (U.S.) Regional Award Winner

    "The Partner Conference was an incredible opportunity to learn more about Enterasys' plan for increasing business with resellers. We appreciate the award we received, but we feel we should have presented Enterasys an award as our best partner. We have found Enterasys to be our most valued manufacturer and the team we work with is simply outstanding in their partnership, professionalism and cooperative spirit."--William Buckalew, vice president

    The Enterasys Secure Networks Advantage

    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.

    About Enterasys Networks

    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 www.enterasys.com.

    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.
    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 annual report on Form 10-K for the fiscal year ended January 3, 2004.

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CONTACT: Enterasys Networks Kevin Flanagan, 978-684-1473 kflanaga@enterasys.com or CHEN PR, Inc. Kevin Kosh, 781-466-8282, ext. 11 kkosh@chenpr.com

KEYWORD: MASSACHUSETTS INDUSTRY KEYWORD: HARDWARE COMPUTERS/ELECTRONICS SOFTWARE NETWORKING SOURCE: Enterasys Networks

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