<PAGE>

                                                                  EXHIBIT (a)(4)

1.       What is the Stock Option Exchange Program?

         Our Stock Option Exchange Program (the "Offer") is a voluntary program
permitting eligible employees to cancel certain underwater stock options (the
"Eligible Options") and exchange them for new options covering the same number
of shares (the "New Options"). For accounting reasons, we cannot grant New
Options for at least six months and one day after we cancel the Eligible
Options, so the New Options will be granted June 5, 2002 or a later date if we
extend the Offer, and will have an exercise price that will be determined on the
grant date of these New Options (the "New Option Grant Date").

         Your participation in this Offer is voluntary. You can either keep your
current Eligible Options at their current exercise price with their existing
vesting schedules or you can cancel Eligible Options in exchange for the same
number of New Options. The New Options will have an adjusted vesting schedule as
described in Item 13 below.

2.       Why are we offering the Stock Option Exchange Program?

         We are making this Offer to our employees because of the decline in the
price of our common stock over the previous year. We recognize that the exercise
prices of the majority of outstanding options to purchase our common stock are
higher than the current market price of our common stock, which has reduced the
potential value of these options to you. By making this Offer, we intend to
provide our employees with the benefit of holding options that over time may
have a greater potential to increase in value, and thereby create better
incentives for our employees to remain with us and contribute to the success of
Extreme.

3.       What is an underwater stock option?

         An "underwater" stock option is an option with an exercise price that
is higher than the current common stock price as reported, in the case of our
common stock, on Nasdaq.

4.       What options may I exchange as part of the Offer?

         We are offering to exchange all stock options with an exercise price of
$10.00 or more that are currently outstanding under the 1996 Amended Stock
Option Plan ("1996 Plan"); the 2000 Nonstatutory Stock Option Plan ("2000
Plan"); and the 2001 Nonstatutory Stock Option Plan ("2001 Plan").

5.       Are there conditions to the Offer?

         The Offer is subject to conditions described in the Tender Offer
documentation that we filed with the SEC, including the right of Extreme to
cancel the Offer if there is a significant change in events that would make
doing the Offer inadvisable. However, the Offer is not contingent upon a minimum
number of employees accepting the Offer or a minimum number of Eligible Options
being exchanged.

6.       Are there any eligibility requirements I must satisfy in order to
         receive the New Options?

         You must be an employee of Extreme (or its subsidiaries) through the
end of the Offer period on December 3, 2001 (the "Expiration Date"), and you
must remain continuously employed at Extreme through the New Option Grant Date.
If you are not an employee on the Expiration Date, you will not be eligible to
exchange any Eligible Options and any election you may have made will become
invalid. In addition, if your employment with Extreme is terminated for any
reason, including as a result of a reduction in force, you will fall in this
category.

         If your Eligible Options were cancelled under this Offer, but you do
not remain an employee of Extreme through the New Option Grant Date, you will
not be granted New Options and your cancelled options (including the vested
portion) will not be reinstated.

<PAGE>

7.       How does the Offer work?

         On or before the Expiration Date, you may decide to exchange any one or
all of your Eligible Option grants for New Options, which will be granted on the
New Option Grant Date. If you accept this Offer and tender an Eligible Option
grant for exchange, your Eligible Option grant will be cancelled the first
business day following the Expiration Date, or December 4, 2001 (the
"Cancellation Date"). The New Options will be granted on a date that is at least
six months and one day after the Cancellation Date, or June 5, 2002 (unless
Extreme extends the Offer Period).

         If you accept this Offer and tender an Eligible Option grant for
exchange, then you must exchange all of those options that were granted within
the period that is six months prior to the Cancellation Date. In other words, if
you participate in the offer, you must exchange all those options that were
granted since June 4, 2001.

         Your New Option will represent the same number of shares as the total
of each Eligible Option grant that you exchanged. The number of shares
represented under New Option grants will be adjusted for any stock split, stock
dividend, re-capitalization or similar transaction that may occur between the
Expiration Date and the New Option Grant Date.

8.       What if my Eligible Options are not currently vested? Can I exchange
         them?

         Yes. Your Eligible Options do not need to be vested in order for you to
participate in the Offer.

9.       If I elect to exchange my Eligible Options, do I have to exchange all
         of my Eligible Option grants or can I just exchange some of them?

         If you have more than one Eligible Option grant, then you may exchange
any or all such Eligible Option grants, however, in all cases you must exchange
all unexercised shares under a particular Eligible Option grant. In addition, if
you exchange any of your Eligible Option grants, you must exchange all of your
options granted six months before the Cancellation Date (on or after June 3,
2001).

10.      Can I exchange the remaining portion of an Eligible Option grant that I
         have partially exercised?

         Yes. However, only unexercised shares covered by an Eligible Option
grant may be exchanged if you elect to exchange a partially exercised Eligible
Option grant.

11.      When will I receive my New Options?

         You will receive your New Options on the New Option Grant Date, which
will be June 5, 2002, or a later date if we extend the Offer.

12.      Why won't I receive my New Options immediately after the Expiration
         Date of the Offer?

         In order to avoid negative accounting consequences that can result from
stock option exchanges, we cannot grant New Options for at least six months and
one day after the Cancellation Date. The Cancellation Date will be December 4,
2001, or a later date if we extend the Offer, so New Options are scheduled to be
granted June 5, 2002.

<PAGE>

13.      How will my New Options vest?

         The New Options for all Eligible Options exchanged will have a vesting
schedule that is based on the grant date of the Eligible Option exchanged, as
follows:

         .    If the Eligible Option exchanged for the New Option has a grant
              date in 1999, the New Option will be 25% vested as of the New
              Option Grant Date and the remaining 75% vests monthly over 24
              months.

         .    If the Eligible Option exchanged for the New Option has a grant
              date between January 1, 2000 and June 30, 2000, the New Option
              will be 25% vested as of the New Option Grant Date and the
              remaining 75% vests monthly over 28 months.

         .    If the Eligible Option exchanged for the New Option has a grant
              date between July 1, 2000 and December 31, 2000, the New Option
              will be 25% vested as of the New Option Grant Date and the
              remaining 75% vests monthly over 32 months.

         .    If the Eligible Option exchanged for the New Option has a grant
              date in 2001, the New Option will be 25% vested as of the New
              Option Grant Date and the remaining 75% vests monthly over 36
              months.

14.      What is the exercise price for the New Options?

         The exercise price of your New Options will be the fair market value of
our common stock on the New Option Grant Date, which is expected to be June 5,
2002, or a later date if we extend the Offer, that will be the closing price of
our common stock as reported on Nasdaq on that date. WE CANNOT GUARANTEE THAT
THE NEW OPTIONS WILL HAVE A LOWER EXERCISE PRICE THAN THE ELIGIBLE OPTIONS YOU
EXCHANGED.

15.      How long is the option term of the New Options?

         All New Options will have our standard option term of ten years from
the New Option Grant Date.

16.      If I exchange my Eligible Options, how many shares will I receive under
         my New Options?

         This is a share-for-share Offer, so for each share covered by the
Eligible Options you exchange, you will receive one share under the New Options.
However, the number of shares covered by your New Options will be adjusted for
any stock split, stock dividend, re-capitalization or similar transaction that
may occur between the Expiration Date and the New Option Grant Date.

17.      Will my participation affect my receipt of any other option?

         Yes. If you participate in the Offer then you will not be able to
receive any additional option grants during the period prior to the New Option
Grant Date. If you receive a promotion prior to the New Option Grant Date and
you elected to exchange any Eligible Options under this Offer, the promotional
option will be deferred until the New Option Grant Date.

18.      How long will this Offer remain open?

         Presently, the Offer is scheduled to remain open until 12:00 midnight
on the Expiration Date, which is expected to December 3, 2001, or a later date
if we extend Offer. We have no plans to extend the Offer. However, if we do
extend the Offer, you will be notified of the extension.


<PAGE>

19.      If the Offer is extended, how does the extension impact the date on
         which my New Options will be granted?

         If we extend the Offer, the New Option Grant Date will be extended to a
day that is at least six months and one day after the extended Cancellation
Date.

20.      Will my New Options be incentive stock options or nonstatutory stock
         options?

         All New Options will be nonstatutory stock options.

21.      Will I need to pay taxes if I exchange my options in the Offer?

         - For US employees:

         If you exchange any Eligible Options in the Offer, you will not be
required under current U.S. law to recognize income for U.S. federal income tax
purposes at the time of the exchange or upon our acceptance and cancellation of
the options. In addition, the grant of the New Options is not a taxable event
under current U.S. law, and you will not be required under current U.S. law to
recognize income for U.S. federal income tax purposes at the time of grant.

         - For non-US employees:

         All option holders, including those subject to taxation in a country
other than the US, whether by reason of nationality, residence or otherwise,
should consult with their own personal tax advisors as to the tax consequences
of their participation in the Offer. Tax consequences may vary depending on the
tax law of each country and each individual participant's circumstances. See the
Tender Offer documents filed with the SEC for more information.

22.      What do I need to do to exchange my Eligible Options?

         If you wish to tender your options for exchange, you must complete the
online election form found on Extreme Networks' internal website created for
this Offer (https://exchange.extremenetworks.com) before 12:00 midnight, Pacific
Time, on December 3, 2001, unless the Offer is extended.

23.      What is the deadline to elect to participate in the Offer?

         You must submit your elections by 12:00 midnight, Pacific Time, on the
Expiration Date, which is December 3, 2001, or a later date if we extend the
Offer.

24.      Can I change my election? How often?

         Yes. You can change your election as many times as you like by revising
and resubmitting your elections on Extreme Networks' internal website created
for this Offer (https://exchange.extremenetworks.com) prior to the Expiration
Date. However, the last election that you submit prior to the deadline will be
permanent.

25.      What will happen if I don't turn in my form by the deadline?

         If you miss this deadline, you cannot participate in the Offer. THERE
CAN BE NO EXCEPTIONS TO THIS DEADLINE.

<PAGE>

26.      What if I don't accept this Offer?

         This Offer is completely voluntary. You do not have to participate, and
there are no penalties for the electing not to participate in this Offer. If you
elect not to participate in the Offer, none of your options will be exchanged or
cancelled.

27.      What do I do if I have additional questions about this Offer?

         If you have questions about the Offer, you should contact Bill Barthell
in the Legal Department by email (bbarthell@extremenetworks.com) or telphone:
                                  -----------------------------
408-579-2613.

28.      What do I do if I have questions about my options?

         If you have questions about your options, you should contact Anna Baca
in Stock Administration by email (abaca@extremenetworks.com) or telephone:
                                  -------------------------
408-579-2617.

