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Enterasys Networks(R) (NYSE: ETS), the Secure Networks Company(TM), today announced that Telefonica, the leading Spanish fixed and mobile telecoms operator, has deployed an Enterasys Secure Network at the company's new Madrid headquarters. Spanning 15 buildings, four city districts and 14,000 employees, the Secure Networks infrastructure provides unprecedented flexibility to support Telefonica's new mobile working culture, which is centered on dynamic teams defined by individual roles and objectives. The Secure Network provides Telefonica with centralized definition and deployment of user policies, as well as management of the infrastructure down to the individual device and user level--including enabling secure guest access. The embedded security capabilities protect the mission-critical information that moves across the network. Each employee has a flexible and personal access profile that follows them as they move throughout the network environment, ensuring the highest levels of collaborative access, mobility of location or device, and security. "The network infrastructure must be an enabler of collaboration, not an impediment," said John Roese, chief technology officer of Enterasys Networks. "This level of user-focused flexibility and granular control is the hallmark of Secure Networks, and it enables Telefonica and enterprises worldwide to maintain business continuity while ensuring that the vital data and customer information that traverses the network is protected from a wide range of internal and external threats." Telefonica has deployed Enterasys Matrix(TM) N-Series Platinum switches with NetSight(R) policy manager. The company chose the N-Series for its unique, no-single-point-of-failure architecture and support for Power over Ethernet, as well as a seamless upgrade path to support 10Gb Ethernet. Telefonica chose NetSight policy manager for its ability to centralize control of the entire infrastructure, while providing holistic visibility and granular control down to the network device, individual user and application. The Enterasys Secure Networks Advantage Enterasys' industry-leading Secure Networks products and solutions provide the industry's most comprehensive embedded infrastructure security available today. Secure Networks delivers granular policy-based security, providing visibility and control down to the network device, individual user and application level, which enables network managers 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--the Secure Networks Company--provides enterprises with the most integrated, up-to-date portfolio of security-enabled network infrastructure products, centralized command and control software, and advanced security applications available today. Information about the company's award-winning line of policy-enabled switches, routers, wireless products, security software, and services is available at www.enterasys.com. (ETS-C) 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 definitive proxy statement filed on January 17, 2006, and our quarterly report on Form 10-Q for the fiscal quarter ended October 1, 2005.