EXHIBIT 99.1

FOR IMMEDIATE RELEASE

For more information, contact:
Extreme Networks
Investor Relations		Public Relations
408/579-3030		408/579-2963
investor_relations@extremenetworks.com		vbellofatto@extremenetworks.com

EXTREME NETWORKS REPORTS SECOND QUARTER RESULTS

SANTA CLARA, Calif., Jan. 15, 2004– Extreme Networks, Inc. (Nasdaq: EXTR), a leader in Ethernet broadband networking solutions, today announced financial results for the fiscal second quarter ended Dec. 28, 2003.

Net revenue for the quarter was $83.4 million compared to $90.2 million in the second quarter of fiscal 2003. Net loss was $5.6 million and loss per share was $0.05 compared to the net loss of $19.0 million and a loss per share of $0.17 in the second quarter of fiscal 2003.

These results are in line with the Company’s preliminary expectations that were announced on December 16, 2003.

The current quarter result reflects a non-cash expense of $1.0 million included in research and development expenses related to a warrant issued to Avaya, Inc. on October 30, 2003 in conjunction with the recently announced partnership agreement between Extreme and Avaya. Results for the second quarter of last year include charges of $26.9 million related to restructuring and property and equipment write-offs.

Cash and cash equivalents and investments at the end of second quarter were $413 million, representing a $10 million increase over the prior quarter of fiscal 2004.

“During the quarter, we undertook two major activities that strengthen our position to catch the next wave in networking – the availability of our fourth generation technology, the BlackDiamond 10K chassis switch, and our strategic partnership with Avaya,” said Gordon Stitt, president and CEO. “With these achievements, and our ongoing commitment to developing innovative technology that enables our customer to build a network infrastructure that serves as a strategic asset, we are on the track to achieve our goal of renewed revenue growth.”

Extreme today also reiterated its expectations for the March 2004 quarter. The Company expects revenues to increase sequentially, to a range of $85 – $90 million. The Company also anticipates that gross margins will improve sequentially and that operating expenses will be in line with expenses in the current quarter.

Quarterly Business Highlights:

• Extreme announced the new BlackDiamond 10K Chassis Switch

Built on its fourth generation silicon technology, the new BlackDiamond 10K switch leads the industry in extensibility, resiliency and scalability in a 10 Gigabit Ethernet platform. Equipped with a first-of-its kind modular software foundation, ExtremeWare XOS, the new BlackDiamond 10K enables customers to successfully build a next generation intelligent network core and allows them to easily migrate to a single converged network.

With the introduction of the new BlackDiamond 10K, Extreme is delivering on a unique strategy for revitalizing the network infrastructure to manage the hundreds of thousands of devices, both computing and non-computing, that will be managed from the main (core) network. This strategy includes Extreme’s Unified Access enterprise edge architecture designed to meet the needs of enterprises that have been waiting to deploy a single, secure and seamless network for both wired and wireless network access.

• Extreme and Avaya Announce Comprehensive Strategic Alliance

Extreme and Avaya formed a comprehensive strategic alliance to provide businesses around the world with one of the broadest arrays of converged technologies and services in the industry, all through a single relationship. Together the two Companies have agreed to jointly develop and market a range of standards-based converged solutions that will integrate Avaya’s market leading IP telephony solutions and Extreme’s award-winning Ethernet platforms. As part of the alliance, Avaya will be a reseller of Extreme’s data networking portfolio and provide comprehensive planning, design, implementation and management services support through Avaya Global Services.

• Extreme Powers New Advanced Academic Facility

Extreme’s award-winning Ethernet solutions are at the center of the new state-of-the-art John Gilbert Reese Center at Ohio State University, Newark and the Ohio Technical College. This next generation network infrastructure delivers Gigabit and 10 Gigabit speeds for a unique advanced academic environment that allows students to learn and communicate more effectively.

• Increased Commitment to the Metro Ethernet Forum

Extreme’s strengthened its participation in the Metro Ethernet Forum with the appointment of Craig Easley to the Forum’s board of directors.

• Extreme Participates in National Demonstration of IPv6

Extreme participated in an IPv6 Demonstration Collaborative Initiative in conjunction with the University of New Hampshire’s Interoperability Labs. Extreme Ethernet switching platforms prove “ready for deployment” with demonstrated interoperability.

Conference Call

Extreme Networks will host a conference call to discuss these results at 8:30 a.m. EDT (5:30 a.m. PDT), for more information visit http://www.extremenetworks.com/aboutus/investor/

Extreme Networks, Inc.

Extreme Networks delivers the most effective applications and services infrastructure by creating networks that are faster, simpler and more cost-effective. Headquartered in Santa Clara, Calif., Extreme Networks markets its network switching solutions in more than 50 countries. For more information, visit www.extremenetworks.com

# # #

Extreme Networks is a registered trademark of Extreme Networks, Inc., in the United States and other countries.

This announcement contains forward-looking statements that involve risks and uncertainties, including statements about regarding future operating results. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including, but not limited to: our effectiveness in controlling expenses, fluctuations in demand for our products and services; a highly competitive business environment for network switching equipment; the possibility that we might experience delays in the development of new technology and products; customer response to our new technology and product; and a dependency on third parties for certain components and for the manufacturing of our products. We undertake no obligation to update the forward-looking information in this release. More information about potential factors that could affect our business and financial results is included in our filings with the Securities and Exchange Commission, including, without limitation, under the captions: “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and “Risk Factors,” which is on file with the Securities and Exchange Commission (http://www.sec.gov).

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per-share amounts)

(Unaudited)

		Three Months Ended								Six Months Ended
		December 28, 2003				December 29, 2002				December 28, 2003				December 29, 2002
Net revenue:
Product		$	71,500			$	80,470			$	148,256			$	171,720
Services			11,945				9,746				22,560				19,065
Total net revenue			83,445				90,216				170,816				190,785
Cost of revenue:
Product			34,105				40,109				67,537				88,495
Services			8,898				9,637				17,934				18,531
Total cost of revenue			43,003				49,746				85,471				107,026
Gross margin:
Product			37,395				40,361				80,719				83,225
Services			3,047				109				4,626				534
Total gross margin			40,442				40,470				85,345				83,759
Operating expenses:
Sales and marketing			23,611				25,577				45,436				53,049
Research and development			14,569				13,418				27,866				27,927
General and administrative			7,860				6,729				14,891				13,664
Amortization of deferred stock compensation			181				1,039				733				2,342
Restructuring charges			—				14,187				962				14,187
Property and equipment write-off			—				12,678				—				12,678
Total operating expenses			46,221				73,628				89,888				123,847
Operating loss			(5,779	)			(33,158	)			(4,543	)			(40,088	)
Other income, net			63				990				2,362				1,870
Loss before income taxes			(5,716	)			(32,168	)			(2,181	)			(38,218	)
Provision (benefit) for income taxes			(110	)			(13,173	)			810				(15,190	)
Net loss		$	(5,606	)		$	(18,995	)		$	(2,991	)		$	(23,028	)
Net loss per share - basic and diluted		$	(0.05	)		$	(0.17	)		$	(0.03	)		$	(0.20	)
Shares used in per share calculation – basic and diluted			117,665				114,819				117,143				113,409

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

		December 28, 2003			June 29, 2003
Assets
Current assets:
Cash, cash equivalents and short-term investments		$	164,355		$	163,617
Accounts receivable, net			24,388			26,794
Inventories, net			20,508			18,710
Prepaid expenses and other current assets			9,852			16,878
Total current assets			219,103			225,999
Property and equipment, net			67,193			73,767
Marketable securities			248,246			238,540
Other assets			31,092			11,951
Total assets		$	565,634		$	550,257
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	16,406		$	19,020
Deferred revenue			50,773			48,298
Accrued warranty			8,739			10,200
Other accrued liabilities			42,871			51,190
Total current liabilities			118,789			128,708
Other long-term liabilities			19,559			22,313
Convertible subordinated notes			200,000			200,000
Total stockholders’ equity			227,286			199,236
Total liabilities and stockholders’ equity		$	565,634		$	550,257

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

		Six Months Ended
		December 28, 2003				December 29, 2002
Cash flows from operating activities:
Net income (loss)		$	(2,991	)		$	(23,028	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation			10,533				14,282
Provision for doubtful accounts			(200	)			—
Deferred income taxes			—				(15,200	)
Amortization of deferred stock compensation			733				2,342
Amortization of intangible assets			1,261				—
Restructuring charges			962				26,865
Changes in operating assets and liabilities:
Accounts receivable			2,606				29,615
Inventories			(1,798	)			(3,412	)
Prepaid expenses and other current and noncurrent assets			9,323				(1,815	)
Accounts payable			(2,614	)			(6,884	)
Deferred revenue			2,475				2,721
Accrued warranty			(1,461	)			1,156
Other accrued liabilities			(11,913	)			(12,470	)
Net cash provided by operating activities			6,916				14,172
Cash flows from investing activities:
Capital expenditures			(4,081	)			(11,584	)
Purchases and maturities of investments, net			3,965				(40,966	)
Net cash used in investing activities			(116	)			(52,550	)
Cash flows from financing activities:
Proceeds from issuance of common stock			8,404				2,025
Net cash provided by financing activities			8,404				2,025
Net increase in cash and cash equivalents			15,204				(36,353	)
Cash and cash equivalents at beginning of period			44,340				71,830
Cash and cash equivalents at end of period		$	59,544			$	35,477