Enterasys Networks’ Dragon Intrusion Defense System Named IDS Product of the Year by Information Security Magazine

Andover, Mass. -- December 15, 2004 -- Enterasys Networks(R) (NYSE: ETS), the Secure Networks Company(TM), today announced that its Dragon(R) Intrusion Defense System has won the Gold award for IDS Product of the Year from Information Security magazine. The award is based on the votes of more than 400 information security professionals.

Information Security said Dragon “epitomizes the transition of IDSes from ’reactive detection’ to ’proactive correlation.’ Rather than firing off thousands of alerts based on single-node scanning, Dragon uses multiple virtual sensors to correlate event data from across the network and compare it to collected data on the networks’ vulnerability posture. The process, managed through Enterasys’ Dynamic Intrusion Response (DIR) system, results in more accurate and timely intrusion management, as well as fewer false positives.”

The honor comes as the company announces the immediate availability of the latest and most comprehensive update in the product’s history--Dragon 7.0--which establishes a new benchmark in IDS/IPS functionality.

The magazine goes on to say that “many enterprises are reluctant to implement full-scale inline IPS for fear of blocking legitimate traffic. Some users suggest that Dragon’s passive scanning combined with DIR attack correlation, is a more sensible approach.”

Dragon received the Gold award based on the opinions of satisfied customers, including the CISO of a government agency who said, “Enterasys is an innovative company that understands security, and how to protect you. It is willing to work with diverse organizational needs.”

Information Security also said, “Enterasys has transformed Dragon from a stand-alone IDS to the cornerstone of its network security architecture.”

“It’s a great honor for Dragon and Enterasys to receive such significant industry recognition. It’s especially gratifying that the winner is determined by network and security professionals who understand what it takes to ensure business continuity with a robust and highly secure infrastructure,” said Cynthia Gallant, senior vice president, Secure Networks Group for Enterasys. “Now, with Dragon 7.0, we are delivering even more powerful IDS performance to help enterprises protect their vital network assets from threats and unauthorized access.”

The 2004 Products of the Year awards were based on the results of interviews with more than 400 security managers from 273 companies. The InfoPro, an independent analyst firm, compiled the results. Each vendor is judged on its brand or reputation, quality of product, delivery of product as promised, quality of technical support, technical innovation, strategic vision, competitive positioning, quality of the sales team, interoperability and ease of doing business.

Dragon 7.0

With the immediate availability of Dragon version 7.0, Enterasys once again raises the bar for enterprise network security by offering the industry’s most robust intrusion-defense capabilities. Its unique threat-detection technology discovers threats, network misuse, system exploits and a wide array of other malicious activities that can disrupt business continuity, costing enterprises time and money and adversely affecting the ability to meet customers’ needs. Current customers and those wishing to evaluate the product can download the software at https://dragon.enterasys.com/.

Among the key enhancements in Dragon 7.0 are:

-- Next-Generation Management--User-friendly interface with role-based access designed for scalability to meet the needs of enterprises and managed security service providers. A new GUI built on a Java framework in a client-server architecture delivers ease of use, simplified configuration and centralized management of all Dragon elements.

-- High-Performance Architecture--A new multi-threaded architecture enables true Gigabit-per-second performance network sensors. The multifaceted engine provides threat detection using advanced signature-based pattern analysis, anomaly detection and protocol decoding.

-- Virtual Sensors--Allows a single sensor to operate as multiple unique sensors with unique policies and configurations, thereby limiting a customer’s need to purchase multiple network IDS appliances.

-- Web Server Intrusion Prevention--Enterasys’ first intrusion-prevention technology is designed to protect enterprise Web servers. The Dragon Web Intrusion Prevention technology is the most comprehensive and flexible Web server protection product on the market. It monitors more aspects within http communications than any other product and supports multiple response capabilities once an attack is discovered.

The Enterasys Secure Networks Advantage

Enterasys’ industry-leading Secure Networks technology and solutions provide the highest level of infrastructure security available today. Secure Networks delivers the most granular level of security, providing visibility and control down to the network device, individual user and application level. This enables enterprises 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. This unique approach offers significant operational and business benefits, unmatched by vendor offerings 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 is the Secure Networks Company, providing enterprise customers with innovative network infrastructure products, services and solutions that deliver the security, productivity and adaptability benefits required by Global 2000 organizations. For more information on Enterasys Secure Networks and the company’s products, including multilayer switches, core routers, WAN routers, wireless LANs, network management, and intrusion defense systems, visit www.enterasys.com.

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 annual report on Form 10-K for the fiscal year ended January 3, 2004.

Contact Information

Kevin Flanagan

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Enterasys Networks

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