Foundry Networks (FDRY) Declares Special Dividend of $0.249/Share

December 16, 2008 7:39 AM EST

Foundry Networks(TM), Inc. (Nasdaq: FDRY), announced today that it has completed the sale of its portfolio of auction rate securities. Based on estimated net proceeds of $38.8 million from the sale, Foundry anticipates that the previously announced conditional special cash dividend payable to Foundry stockholders of record immediately prior to the completion of the merger between Foundry and a wholly owned subsidiary of Brocade Communications Systems, Inc will be approximately $0.249 per share of Foundry common stock.

As previously announced, the dividend will be calculated based on Foundry's fully diluted share count using the treasury stock method as of the time of the completion of the merger. Therefore the final dividend amount can only be calculated at that time.

Foundry will convene a special meeting of its stockholders on December 17, 2008 to consider the proposed merger with Brocade. The parties anticipate that the merger will, subject to satisfaction of closing conditions, be completed in the period between the special meeting and the end of the calendar year.

The special dividend is scheduled to be paid on the date on which the merger is completed. If the pending merger is not completed, Foundry will not pay the special dividend.

Foundry Networks, Inc. designs, develops, manufactures, markets, and sells switching and routing solutions for wired and wireless local area networks (LAN), metropolitan area networks (MAN), wide area networks (WAN), and other infrastructure products worldwide.

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