Extreme Networks Establishes Stockholder Rights Plan

Apr 27, 2001, 01:00 ET from Extreme Networks, Inc.

    SANTA CLARA, Calif., April 27 /PRNewswire/ --
 Extreme Networks, Inc. (Nasdaq:   EXTR) announced today that its Board of
 Directors has adopted a Stockholder Rights Plan. Under the plan, Rights will
 be distributed as a dividend at the rate of one Right for each share of the
 company's common stock held by stockholders of record as of the close of
 business on May 14, 2001.
     The Rights Plan is designed to prevent an acquirer from gaining control of
 Extreme Networks without offering a fair and adequate price and terms to all
 of Extreme Networks' stockholders. The Rights Plan is intended to increase
 Extreme Networks' ability to negotiate with potential acquiring companies to
 maximize stockholder value and is not intended to interfere with takeover
 offers or other strategic alternatives that the company's Board of Directors
 believes are in the stockholders' best interests.
     The Rights Plan was not adopted in response to any attempt to acquire the
 company. Under the plan, each Right will entitle stockholders to purchase a
 fractional share of the company's preferred stock for $150.00. Each such
 fractional share of the new preferred stock has terms designed to make it
 substantially the economic equivalent of one share of common stock. Initially,
 the Rights will not be exercisable and will trade with the company's common
 stock.  Generally, the Rights may become exercisable if a person or group
 acquires beneficial ownership of 15 percent or more of Extreme Networks'
 common stock or commences a tender or exchange offer upon consummation of
 which such person or group would beneficially own 15 percent or more of
 Extreme Networks' common stock. When the Rights become exercisable, the Board
 of Directors has the right to authorize the issuance of one share of Extreme
 Networks common stock in exchange for each Right that is then exercisable.
     Further details of the Rights Plan are outlined in a letter that will be
 mailed to stockholders as of the record date. Additionally, a copy of the
 Rights Plan will be filed shortly with the Securities and Exchange Commission.
 
     About Extreme Networks
     Extreme Networks, Inc. delivers a simplified approach for building
 networks based on its corporate vision of Ethernet Everywhere(R) networks.
 The company's family of BlackDiamond(R), Alpine(TM), and Summit(R) switching
 solutions incorporate a unique combination of ExtremeWare(R) management
 software and an ASIC-based common architecture to provide Global 2000
 enterprises, telecommunications companies, Internet Service Providers and
 content providers with the ability to increase the flow of information and
 accommodate future network growth.
     Headquartered in Santa Clara, Calif., Extreme Networks was listed as the
 "Fastest Growing Company in Silicon Valley" based on three-year revenue growth
 by the San Jose and Silicon Valley Business Journal. For more information,
 visit www.extremenetworks.com.
     NOTE:  Extreme Networks, ExtremeWare, BlackDiamond, Summit and Ethernet
 Everywhere are registered trademarks of Extreme Networks, Inc., and Alpine is
 a trademark of Extreme Networks, Inc., in the United States and other
 countries.
 
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SOURCE Extreme Networks, Inc.
    SANTA CLARA, Calif., April 27 /PRNewswire/ --
 Extreme Networks, Inc. (Nasdaq:   EXTR) announced today that its Board of
 Directors has adopted a Stockholder Rights Plan. Under the plan, Rights will
 be distributed as a dividend at the rate of one Right for each share of the
 company's common stock held by stockholders of record as of the close of
 business on May 14, 2001.
     The Rights Plan is designed to prevent an acquirer from gaining control of
 Extreme Networks without offering a fair and adequate price and terms to all
 of Extreme Networks' stockholders. The Rights Plan is intended to increase
 Extreme Networks' ability to negotiate with potential acquiring companies to
 maximize stockholder value and is not intended to interfere with takeover
 offers or other strategic alternatives that the company's Board of Directors
 believes are in the stockholders' best interests.
     The Rights Plan was not adopted in response to any attempt to acquire the
 company. Under the plan, each Right will entitle stockholders to purchase a
 fractional share of the company's preferred stock for $150.00. Each such
 fractional share of the new preferred stock has terms designed to make it
 substantially the economic equivalent of one share of common stock. Initially,
 the Rights will not be exercisable and will trade with the company's common
 stock.  Generally, the Rights may become exercisable if a person or group
 acquires beneficial ownership of 15 percent or more of Extreme Networks'
 common stock or commences a tender or exchange offer upon consummation of
 which such person or group would beneficially own 15 percent or more of
 Extreme Networks' common stock. When the Rights become exercisable, the Board
 of Directors has the right to authorize the issuance of one share of Extreme
 Networks common stock in exchange for each Right that is then exercisable.
     Further details of the Rights Plan are outlined in a letter that will be
 mailed to stockholders as of the record date. Additionally, a copy of the
 Rights Plan will be filed shortly with the Securities and Exchange Commission.
 
     About Extreme Networks
     Extreme Networks, Inc. delivers a simplified approach for building
 networks based on its corporate vision of Ethernet Everywhere(R) networks.
 The company's family of BlackDiamond(R), Alpine(TM), and Summit(R) switching
 solutions incorporate a unique combination of ExtremeWare(R) management
 software and an ASIC-based common architecture to provide Global 2000
 enterprises, telecommunications companies, Internet Service Providers and
 content providers with the ability to increase the flow of information and
 accommodate future network growth.
     Headquartered in Santa Clara, Calif., Extreme Networks was listed as the
 "Fastest Growing Company in Silicon Valley" based on three-year revenue growth
 by the San Jose and Silicon Valley Business Journal. For more information,
 visit www.extremenetworks.com.
     NOTE:  Extreme Networks, ExtremeWare, BlackDiamond, Summit and Ethernet
 Everywhere are registered trademarks of Extreme Networks, Inc., and Alpine is
 a trademark of Extreme Networks, Inc., in the United States and other
 countries.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X58154735
 
 SOURCE  Extreme Networks, Inc.