Cabletron to Complete Riverstone Spin & Establish Enterasys as a Public Company; Enterasys Networks To Trade as a Public Company On August 6, 2001.

Business/Technology Editors

ROCHESTER, N.H.--(BUSINESS WIRE)--July 10, 2001

Cabletron Systems (NYSE: CS), a holding company for leading networking and telecommunications companies, today announced that it expects to distribute to its shareholders of record as of July 27, 2001 all of its shares of common stock of Riverstone Networks (Nasdaq: RSTN). The distribution of these shares is expected to occur on August 6th. In addition, Cabletron announced that Enterasys Networks will be established as an independent public company on August 6, 2001 and will begin trading on the NYSE under the ticker: "ETS".

"Today's announcements are significant milestones in Cabletron's transformation," said Piyush Patel, Chairman and CEO of Cabletron Systems, Inc. "The Riverstone distribution, the creation of Enterasys as an independent public company, and the planned spin of Aprisma fulfill our commitment to transform Cabletron, create independent "pure-play" operating companies focused on high growth markets, and maximize shareholder value."

On the distribution date, Cabletron Systems will cease to exist as an independent public company and will cease to trade under the symbol "CS."

Cabletron also announced that it plans to enhance and strengthen the balance sheets of Aprisma, Enterasys and Riverstone by contributing additional cash and assets to the operating companies.

   Cash and Investments (in millions)

Newcos      Existing Cash on    Cash Allocated   Investments    Total
            Balance Sheet

Aprisma          n/a                 $100            $20         $120

Enterasys        n/a                 $376            $84         $460

Riverstone      $176                 $120            $15         $311

GNTS                                  $15                         $15

Parent                                $35                         $35

                                                                 $941

Cabletron specified that in exchange for each two Cabletron shares held by a shareholder as of the record date, the shareholder is expected to receive on the distribution date:

-- Two shares of Enterasys Networks

-- Approx. 1.02 shares of Riverstone Networks (based upon a

distribution ratio of .51).

Patel concluded, "I am extremely excited that we are entering the final phase of the transformation, delivering on the promise we made to shareholders over a year ago. We have successfully advanced the Cabletron companies to the next orbit. I am very confident that these companies are now well positioned to thrive as independent public companies."

Today, Cabletron is a holding company having four operating subsidiaries, Aprisma, Enterasys, Riverstone and GNTS. After the distribution date, only two independent public companies will exist, Riverstone and Enterasys. Cabletron Systems will cease to exist on that date. GNTS will have been sold or otherwise disposed of . For an interim period, Aprisma will operate as an independent subsidiary of Enterasys, with the goal of spinning it out as an independent public company by December 31st.

The final record and distribution dates and the final distribution ratio will be established by the Cabletron Board within the next week, but are not expected to vary from the dates and ratios set forth above.

About Cabletron Systems

Cabletron Systems, based in Rochester, NH, was founded in 1983. Initially a provider of world-class networking solutions, Cabletron announced its corporate transformation to a holding company in 2000. Today, Cabletron is a holding company for four of the most innovative, customer-focused organizations in the telecommunications and networking industry: Aprisma Management Technologies, Enterasys Networks, GlobalNetwork Technology Services, and Riverstone Networks. For more information on Cabletron Systems, visit www.cabletron.com.

The steps to be taken on and prior to the distribution date are as follows. Prior to the date of distribution, all remaining assets of holding company Cabletron Systems will be invested in or distributed to the operating companies. On the date of distribution, Cabletron, as a shell holding company, will be merged with Enterasys Networks. Cabletron will no longer exist as an independent public company and will cease to trade under the symbol CS. The combined company will trade on the NYSE as Enterasys Networks under the ticker ETS. On the date of distribution, Cabletron will distribute all of the shares of Riverstone Networks common stock to shareholders of record as of the record date.

This release may contain projections or other forward-looking statements regarding the future financial performance of the Company or other future events and circumstances. Such forward-looking statements by their nature involve risks and uncertainties, and actual results or events could differ materially. Risks that could cause actual events or results to differ materially from those in described in the projections or forward-looking statements include business disruption and market perceptions associated with the Company's plan to transform its business into four independent operating subsidiaries, as well as risks associated with competitive conditions, pricing and margin pressures as a result of product shifts and changes in market dynamics, greater use of, and expenses associate with, distributors and resellers, limited management resources, the Company's acquisition strategy, volatility in the stock markets and market valuations being placed on communications infrastructure and service companies, technological changes, intellectual property protection and related issues, dependence on suppliers and contract manufacturers, and potential volatility in operating results, among others. For a more detailed discussion of these and other risks and uncertainties related to the company's business, please refer to the Company's most recent filings with the Securities and Exchange Commission, including the Company's most recent annual report on Form 10-K, and the Company's other more recent reports on Form10-Q and Form 8-K.