ETS Enterasys Ntwk New

Enterasys Networks(R) (NYSE: ETS), the Secure Networks Company(TM), today introduced the Matrix X-4, a secure core router with a compact form factor to meet the needs of the small to mid-size enterprise market. The X-4 is the latest innovation in the Matrix X family of secure core routers that Enterasys began shipping earlier this year. In the third quarter of 2005, Enterasys won a multimillion-dollar deal from the German National Railway centered on the Matrix X-4. The sale included 24 X-4 systems along with SecureStack B2 secure edge switches and related services. The X-4 accounted for more than half of the revenue from the sale. Offering unrivalled performance, capacity and functionality, the Matrix X family of core routers extends Enterasys' Secure Networks leadership to the critical aggregation point at the network core. Designed to support multiple applications and services--including converged voice, video and data--the unique architecture of the Matrix X combines groundbreaking terabit capacities, carrier-class high availability and embedded security features to form the industry's most powerful and secure core router. The X-4 offers the same industry-leading hardware and software platform resiliency as the larger Matrix X-16 and X-8 platforms. Its per-slot performance capabilities are identical to the larger models but in a much smaller footprint. The X-4 uses the same system components and input/output modules (IOM) as the other Matrix X platforms and runs the complete Enterasys networking software suite. "The Matrix X-4 brings the unmatched secure core routing capabilities of the Matrix X family of routers to a much broader range of enterprises," said John Roese, chief technology officer of Enterasys Networks. "As enterprises add more business-enhancing applications to their networks, the core is the critical aggregation point of these new applications and services, making it the target of existing and emerging threats that can bring down the entire network. The X-4 delivers industry-leading performance and port density to handle the largest application demands, along with support for policy management. Its carrier-class availability ensures consistent, on-demand service across the enterprise." Matrix X Secure Core Router Capabilities Key features and capabilities of the Matrix X family of secure core routers include: -- Three chassis variants--4-slot, 8-slot and 16-slot with support for modular Gigabit Ethernet and 10-Gigabet Ethernet I/O modules -- Supports more than 2.5 Terabits of switching capacity -- Supports up to 64 10-Gigabit Ethernet and 1024 Gigabit Ethernet interfaces in a single rack -- High availability designed for no single point of failure and Enterasys' unique software recovery mechanisms -- Virtual output queuing architecture supports more than 8,000 queues in the system, providing an unequalled level of quality-of-service support--even when the network is hit with security threats and attacks -- Future I/O module and switch fabric upgrades deliver unrivaled investment protection -- Native IPv6 and MPLS ready Pricing and Availability The Matrix X-4 is available now from Enterasys and its worldwide distribution partners. The X-4 offers the industry's most affordable entry price for a secure core routing platform. U.S. list pricing begins at $29,995 for the X-4 starter kit. The Enterasys Secure Networks Advantage Enterasys' industry-leading Secure Networks technology and solutions provide the highest level of embedded 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, which 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. Enterasys' unique architectural approach offers significant operational and business benefits, unmatched by vendors 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 worldwide with the industry's most up-to-date portfolio of edge-to-core networking products, solutions and services, with award-winning policy-based security capabilities embedded in the infrastructure. For more information on Enterasys Secure Networks and the company's comprehensive wired and wireless products, visit www.enterasys.com. (ETS-P) 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 Form 10-Q for the quarter ended July 2, 2005.