1. Page: 1 Network solutions the Extreme way delivering the most Cost-Effective Applications Infrastructure Jan Hof EMEA Product Marketing Manager

2. Why Are We Here?

3. Page: 3 The Extreme Way: A Networking Success Story We founded Extreme Networks in 1996 because networks were slow, expensive and complex – and nobody was doing anything about it We built some of the largest networks in the world: Compaq, Microsoft and Shell We led the silicon switching revolution by making networks that are simpler, faster and less expensive.

4. An International Company From Day One More than 50% of revenues come from outside the US Sound balance between Enterprise and Service Provider market Offices in over 25 countries 24/7 customer support based on three continents

5. Page: 5 Extreme Revenue Trends Fiscal Year 99-02 Fiscal Quarter ‘02 In Millions

6. Page: 6 A Stable Financial Picture Solid revenue generation in a challenging business environment: –$113M in Q4 FY2002 (ending 6/30/02) –Sequential revenue growth during FY’02 –Analyst expectations of continued sequential revenue growth Profitable and cash-flow positive Solid balance sheet –$400M of cash & investments –World-class DSO: range of 40 to 45 days during FY’02 –Doubled inventory turns to over 8x during FY’02 Bottom Line:Extreme is well financed now and for the future

7. Page: 7 Analyst’s Comments On Q4-FY02 Results “We continue to believe Extreme is doing a solid job in a tough environment.” Alex Henderson, SSB “Extreme Networks delivered - for the third quarter in a row - another quarter of modest sales growth, a commendable achievement in today’s environment.” Inder Singh, Prudential Securities “The company achieved its quarterly goals of sequential revenue growth, improved gross margins, improved operating profit, and positive cash flow from operations.” Bill Becklean, Commerce Capital Markets

8. Page: 8 Extreme’s vision for the future years Objectives: Be recognized as the clear alternative in the large enterprise market Be the leader in the emerging Metro Ethernet Service Provider market Vision: All electronic communications will be conducted over Ethernet and IP ; Mission: To deliver the world’s best Ethernet and IP infrastructure solutions;

9. Page: 9 The Extreme Strategy ….. File/Print Mail ERP/CRM FIN HR E-Bus APPs Storage Voice over IP Video Wireless Multi-service Extreme Networks most effective applications and services infrastructure Simpler, Faster and Less Expensive Metro Construction Finance Manufacturing Government Distribution Utilities Services Education Healthcare Universal Mobility (Bluetooth) Persona- lization Other Business APPs IP- Ubiquity To the end-user (powered line)

10. Page: 10 ….. to fulfill your Objectives Best possible End-to-End Ethernet solution: –7*24 hours operational; –redundant; –proven and stable; Reduction of Cost: –Lower investments; –Lower operational expenses (manpower); Future Proof: –scalable to higher capacity; –future support of alternative services; –viability of technology ensured; to support Mission Critical applications to secure Investments to fit the Budget

11. Page: 11 Extreme Corporate Values, most effective Most effective …. –Corporate networks: Proven 25-30% lower Total Cost of Ownership: Replacement by Extreme Equipment will save you money! … and confident to remain: –Excellent Financial Performance: In spite of economic slow-down maintain revenue at current level and maintain positive net income for FY-03; Quote Chet White (Wells Fargo): "We believe that Extreme Networks has established itself as the leading NextGen second-source supplier and is among the leading vendors in the emerging Ethernet MAN” Sound market mix and geographical mix; Extreme Ethernet the most cost effective network: -> to improve productivity -> to allow reduction of Labour, the NR-1 variable cost

12. Page: 12 Extreme Corporate Values multi-service Multi-service: –Recognized as the visionary in the emerging advanced ethernet switching arena (Gartner – Magic Quadrant): Deliver technology fit to your needs: –Mission critical applications requiring high available solutions ; –Real time services in need of QoS policies ; –Security to ensure the confidentiality of your data; To fulfill our promise Ethernet and IP everywhere! –Enhancement of our technical solutions with: Global support and services; Dedicated channel partners; Qualified Go-Purple partners to extend the Extreme to a pre-integrated whole business proposition

13. Page: 13 Extreme Corporate Values IP Ubiquity IP Ubiquity: –Irreversible market trends are: Ethernet/IP penetration will continue to grow and become integral part of our daily life; Technology will continue to evolve ; Continuous price-reduction as function of the capacity; –Extreme has Best of class technology today and in the future: Numerous award-winning products available today; Increase R&D budget to 15% to ensure technology leadership in the future; –Extreme will continue to initiate and steer the relevant standards, e.g. ethernet protection switching, powered line, etc.

14. Page: 14 Your primary requirements high availability Reliable and proven stable products, for example ExtremeWare: –ExtremeWare a Field-Proven Operating System : operational from 1996 onwards; –Predictable rollout: 2 release-trees per year with consecutive maintenance releases; Eases maintenance window planning; Proves ability to execute ; –ExtremeWare runs across the platforms Quality Consistency : in usage and new feature introduction Support of network redundancy to eliminate single point of failure : –Layer-1:Port redundancy –Layer-2: EAPS:switch over within 100 msec today; switch over within 50 msec, planned for Q1-CY03; to comply with well-known SDH services -> no loss of voice calls in case of switch-over; Spanning Tree (today) and rapid spanning tree (1Q-CY03) –Layer-3: VRRP, ESPR;

15. Page: 15 Source: Co-developed TCO/ROI tool – Extreme Networks/Independent Consultant Measured against equivalent Catalyst products – July 2002 Your primary requirements reduction of cost 25% -30% Cost-reduction

16. Page: 16 Your primary requirements And What Do Customers Say? “When we looked at the total cost of ownership between Cisco and Extreme, we couldn’t afford to NOT have Extreme as a significant supplier.” –Senior VP, Major Bay Area Financial Institution March 2002 “Of course it’s lower cost – with Cisco I have to manage 14 software images, with Extreme just 2!” –CIO Coca Cola Enterprises June 2002

17. Page: 17 Your future requirements, A future-proof Multi-service Infrastructure Ethernet Switching Infrastructure WirelessWANSAN Voice VideoNAS Security Backup/ Storage Mgmt Other OSS/ NMS Network Applications CRMERP Financial Applications HR Call Center StrategyBusiness ProcessTech Integration Operation Centre Application Development Business Applications Services

18. Page: 18 The Extreme Product Family Summit

19. Page: 19 The Campus of the Future Extending the Ethernet / IP Experience To The Global Business Network Internet Data Center Gigabit Ethernet Metro Ring (WDMi - 4/8 chnnl cWDM) SONET/SDH Ring GbE N x T1/E1 Enterprise Fiber Phone wire Cat 5 MTU / MDU CPE Gigabit Ethernet Metro Ring (EAPS - Ring Protection) 10GE Ring POS STM-1 STM-4 POS STM-1 STM-4 GbE or POS MPLS Business Park ISP POP Internet Exchange Metro POP Enterprise T3 10 GbE CLEC POP Bldg POP Phone wire LAN The Network Infrastructure for the Virtual Corporation

20. Page: 20 Extreme’s Vision in Practice We believe Extreme’s Ethernet Everywhere vision is the future of global networking Our ultimate goal is to be an integral part of the world’s communications system

21. Page: 21 Extreme Networks your partner to be We understand your business, drivers and concerns: –We have the most (cost) effective solution, –available today, –to fulfill your expectation, –provide the required global support; –to be your trusted partner; We have the most-effective, multi-service solution to deliver the promise IP everywhere; Extreme Networks, the only credible alternative

22. Page: 22 Thank You