Enterasys Achieves Profitable Revenue Growth in Q3 2008

Company Adds More Than 150 New Customers


ANDOVER, MA--(Marketwire - November 10, 2008) - Enterasys Networks Inc., the Secure Networks Company™, today announced financial results for the fiscal third quarter ended 27 September 2008. Revenues grew more than five percent sequentially and gross margins increased consecutively, remaining strong at greater than 50 percent. EBITDA more than doubled over the prior quarter.

"We are pleased with the solid results achieved this past quarter as we continue to focus on customer satisfaction, drive profitable revenue growth, deliver new products, and win new customers," said Terry Schmid, Enterasys Chief Financial Officer. "Our outlook remains optimistic as we continue our strong execution by showing customers and partners how our technology lowers both capital and ongoing operating costs while improving collaboration through unified communications."

New customers in APAC included:
  -- Government - Jeonnam Provincial Police Agency
  -- Government - National Native Title Tribunal
  -- Manufacturing - Flexsys Chemicals
  -- Retail - David Jones Limited
  -- Telecommunications - NOKIA

New customers in the CALA region included:
  -- Energy - Usina Moema
  -- Government - Tribunal de Conta do MT
  -- Healthcare - Paraná Clínicas
  -- Manufacturing - Empresa Siderurgica del Peru S.A.
  -- Transportation - Azul Linhas Aéreas

New customers in the EMEA region included:
  -- Government - Conseil General - Vosges
  -- Healthcare - Ospedale Del Mare
  -- Manufacturing - Grupo Leche Pascual
  -- Manufacturing - Dyckerhoff
  -- Transportation - John Paul II International Airport
     Krakow - Balice Ltd.

New customers in North America included:
  -- Education - Great Rivers Educational Cooperative
  -- Education - Scott County Schools
  -- Finance - Bank of Old Monroe
  -- Finance - Tomato Bank, Ltd.
  -- Manufacturing - AVA Solar

Highlights for Q3 2008 include:

  -- Siemens AG partnered with The Gores Group, LLC in a joint venture to
     grow Enterasys, Siemens Enterprise Communications and SER.
  -- Fixed Layer 2 switching revenue, led by the Enterasys SecureStack
     A-Series and Enterasys SecureStack B-Series edge switches, was up
     16 percent in Q3 2008 compared to the year ago quarter.
  -- The Enterasys SecureStack B3 high-performance gigabit Ethernet edge
     switch continued to have strong growth, with both revenues and port
     shipments up 50 percent in the quarter compared to Q3 2007.
  -- Fixed Layer 3 switching revenues for the Enterasys SecureStack C3
     gigabit Ethernet stackable switch increased nearly 20 percent compared
     to the year ago quarter, while power over Ethernet (PoE) port
     shipments were up more than 40 percent.
  -- In its second quarter of general availability, the Enterasys D2 secure
     gigabit Ethernet workgroup switch continued to gain traction, with
     revenues climbing 37 percent sequentially in Q3 2008.
  -- The new Enterasys G-Series policy-based edge switch continued to gain
     traction, with revenues growing more than 25 percent sequentially
     in Q3 2008.
  -- Revenues for the Enterasys I-Series industrial Ethernet offering were
     up 70 percent sequentially in Q3 2008, and more than doubled compared
     to the year ago quarter.
  -- Diamond and Platinum Distributed Forwarding Engines (DFEs) for the
     Enterasys Matrix N-Series flow-based switches continued to show
     growth, with both revenues and port shipments increasing 4 percent
     sequentially in Q3 2008.
  -- 10 Gigabit Ethernet revenue and port shipments for the Matrix X-Series
     and Matrix N-Series grew nearly 55 percent compared to the year ago
     quarter.
  -- Triple-speed PoE shipments increased 25 percent in the third quarter
     compared to the year ago period as Enterasys continues to be deployed
     in conjunction with VoIP and IP Video solutions from 3Com, Aastra,
     Alcatel, Avaya, Cisco, LifeSize, Mitel, NEC (Sphere), Nortel,
     Panasonic, Pelco, Polycom, ShoreTel, Siemens, Tandberg, and many
     others.
  -- RoamAbout wireless revenue increased more than 30 percent compared to
     the year ago quarter.
  -- The Dragon intrusion prevention system (IPS) had very strong growth,
     with revenues up more than 70 percent sequentially, and 85 percent
     compared to Q3 2007.
  -- License shipments of the Enterasys Network Access Control (NAC)
     solution more than doubled compared to the year ago quarter, while
     revenues were up 90 percent.
  -- Enterasys delivered the new 10 GbE Enterasys SecureStack C3 with
     IPv6 support and a limited lifetime warranty.
  -- New customer success stories were published for Boston College,
     Renfe-Operadora, Sao Paulo City Audit Court, and Scotland's
     Perth & Kinross Council.
  -- The addition of more than 150 new customers, bringing the total
     for the past ten quarters to more than 1,650.

About Enterasys Networks

Enterasys is part of a joint venture with Siemens Enterprise Communications led by The Gores Group, LLC. The joint venture is a multi-billion dollar provider of hardware, software, and services to deliver service-oriented networks that enable service-oriented applications in a mobile and secure manner. Enterasys delivers Secure Networks™ that ensure the confidentiality, integrity, and availability of IT services and the business users that rely on them -- without sacrificing performance. Thousands of enterprises, government agencies and educational institutions in more than 70 countries worldwide rely on our convergence, compliance and connectivity solutions to deliver business-oriented, identity-based visibility and control of individual user and application priority and security. The company's culture is centered on the principle, "There is nothing more important than our customers." Enterasys' standards-based, open-architecture approach to network security offers a long technology lifecycle and significant operational and business benefits, while reducing total cost of ownership. Information about Enterasys' award winning, policy-enabled switches, routers, wireless products, security software and services is available at www.enterasys.com.

About The Gores Group

The Gores Group, LLC, founded in 1987, is a private equity firm focused on acquiring controlling interests in mature and growing businesses which can benefit from the firm's operating experience and flexible capital base. The firm combines the operational expertise and detailed due diligence capabilities of a strategic buyer with the seasoned M&A team of a traditional financial buyer. The Gores Group maintains offices in Los Angeles, Boulder and London. For more information, please visit www.gores.com.

About Tennenbaum Capital Partners, LLC

Tennenbaum Capital Partners is a Santa Monica, California-based private investment firm managing over $7 billion in committed capital in private funds. The firm's investment strategy is grounded in a long-term, value approach, and it assists -- both financially and operationally -- transitional middle market companies in such industries as technology, healthcare, energy, aerospace, business services, retail and general manufacturing. Tennenbaum's core strengths include in-depth knowledge of equity and debt financing vehicles in the public and private markets, as well as a thorough understanding of special situations. For more information, please visit www.tennenbaumcapital.com.

Contact Information: Contacts: Trent Waterhouse Enterasys Networks +1 978 684 1506 trent@enterasys.com Michelle Barry BridgeView Marketing +1 603 809 2748 michelle@bridgeviewmarketing.com

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