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Enterasys Networks(R) (NYSE: ETS), the Secure Networks Company(TM), today introduced Dragon 7.1, the latest version of its award-winning Dragon Intrusion Defense. Dragon now includes powerful intrusion prevention capabilities along with unmatched intrusion detection. Dragon Intrusion Defense provides comprehensive protection for the enterprise IT infrastructure by detecting and mitigating network-borne threats, monitoring and controlling network use, and helping enforce regulatory compliance. Dragon Intrusion Defense is a key component of Enterasys' industry-leading Secure Networks(TM) approach to network security, which embeds granular policy-based security capabilities directly into the network infrastructure. Dragon is built on Enterasys' advanced suite of unique threat detection technologies that monitor both networks and hosts. It not only mitigates worms and denial-of-service attacks, but also defeats spyware and a wide array of other malicious activities, and helps enterprises comply with stringent data-privacy regulations. The Dragon family of intrusion defense products seamlessly combines the capabilities of network and host-based intrusion detection, network and Web server-based intrusion prevention and enterprise-wide intrusion response to deliver the industry's highest available level of network threat protection. It leverages multiple security intelligence sources to ensure maximum visibility by gathering intelligence from the network itself, third party security systems, network communications and hosts attaching to the network. Dragon uses this data to respond quickly and effectively to a wide range of threats that can disrupt business continuity. Enterasys architected Dragon's Network IPS technology for 100 percent stealth operation. Although a Dragon Network IPS sits in-line between switches and routers, it is completely invisible to attackers and immune to attacks from malicious traffic. They cannot attack what they cannot see. The Dragon network IPS is built on the award-winning Dragon intrusion detection engine. Intrusion prevention systems can only defend against attacks they can detect, and the key is to leverage a highly accurate threat detection system that minimizes false positives. Dragon features a high performance stateful firewall engine, providing enterprise security managers with greater levels of network traffic control then traditional IPS systems. The integrated Dragon firewall technology will be a foundation for new advanced services and features in future releases. Dragon is configurable right out of the box to defend against more than 700 types of high-severity threats and it can be configured to defend against an additional several thousand exploits and vulnerabilities. "Dragon 7.1 represents a breakthrough in network intrusion defense by taking a cohesive, layered approach to network security," says John Roese, chief technology officer of Enterasys Networks. "Dragon detects, prevents and responds to the business-crippling effects of internal and external network threats. No other intrusion prevention system available today can match Dragon's comprehensive protection capabilities for helping enterprises maintain business continuity." Dragon's multifaceted threat detection engine uses multiple techniques including protocol analysis, anomaly detection and signature analysis. Dragon core applications contain more than 250 different analysis functions and its signature analysis engine supports more than 4000 signatures. In addition to blocking an attacker on the first attempt to compromise the network, Dragon's IPS can communicate with Enterasys' Dynamic Intrusion Response solution, enabling policies that will prevent attackers from accessing any point of entry to the enterprise network. With the Introduction of Dragon 7.1, Enterasys has released a new family of intrusion prevention appliances that scale from 100 Mbps to 1.2 Gbps. The Dragon IPS architecture was designed to enable extremely high performance levels and Enterasys plans to release multi-gigabit class platforms in the near future. Pricing and Availability Dragon Network IPS appliances are available now from Enterasys Networks and its worldwide distribution partners beginning at US$9,995 for a 100 Mbps capacity and US$54,995 for the 1.2 Gbps appliance. 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.