Brocade and Foundry Networks amend acquisition agreement

Brocade, a provider of data center networking services, and Foundry Networks, a provider of enterprise and Web traffic management services, have signed an amendment to the definitive agreement, which provides for the acquisition of the outstanding shares of Foundry Networks by Brocade.

Under the revised terms, Foundry stockholders would be entitled to receive $16.50 per share in an all-cash transaction at the closing of the deal, as previously announced by the companies on October 29, 2008.

In addition, Foundry stockholders is expected to receive the proceeds of the sale of Foundry's portfolio of auction rate securities - up to approximately $50 million in the aggregate - calculated on a fully diluted basis based on the treasury stock method, if Foundry is successful in liquidating its portfolio of these securities prior to the close of the acquisition.

Pending Foundry stockholder approval, the companies expect to close the transaction in late December 2008, subject to the satisfaction of customary terms and conditions.

Mike Klayko, CEO of Brocade, said: We are excited about this transaction and believe that the combination will provide a number of strategic and financial benefits that we expect will be well-received by the customers of both companies.

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