De Beers Scales Up 10-Gigabit Ethernet Technology from Enterasys; World's Largest Diamond Mining Company Completes Standardization on Enterasys' Secure Networks Solution.

Business Editors/High-Tech Writers

ANDOVER, Mass.--(BUSINESS WIRE)--June 15, 2004

Enterasys Networks (NYSE: ETS), the Secure Networks Company(TM), today announced that international mining giant the De Beers group has completed standardizing on Enterasys (for its Southern African Operations), in conjunction with its partner Bytes Technology Networks, for its local area network (LAN).

The solution encompasses Enterasys' Secure Networks(TM) solutions with 10-Gigabit Ethernet technology. The enhanced network enables the secure delivery of critical SAP data to increase productivity across all business operations.

De Beers is the world's largest diamond mining house and is the industry leader in the exploration, mining, recovery, sorting, valuation and marketing of diamonds. The network supports De Beers' South African corporate offices as well as its South African mining sites.

The main reason the mining giant underwent the upgrade of its network backbone was to ensure the highest levels of security, availability and throughput for the new SAP system it is in the process of deploying across its South African sites. The SAP system requires the highest performance and resiliency from a networking infrastructure. That is why De Beers selected the Enterasys Secure Networks solution as well as the ER-16 routers, the benefits of which include continuity and enhanced the control over network traffic.

The Secure Networks Solution includes 10-Gigabit Ethernet technology from ER-16 routers at the network core, ensuring high performance. The remainder of the network features Enterasys Matrix N-Series switches at the distribution layer to provide a high-performance infrastructure within a secure networking environment.

"The performance and security features that come with the Enterasys solution are easily configurable and as yet unchallenged by any of its competitors in terms of price and performance," said Mayan Mathen, Network Architect at Bytes Technology Networks South Africa.

As corporations continue to consolidate communications services, the network continues to become a more critical business tool, and security, resiliency, performance and support for converged or multi-service networking is growing. Important features such as support for policy-based networking, per-user authentication, quality of service and advanced network management are essential to maximizing network availability and ensuring business continuity.

"De Beers is another example of an Enterasys Secure Network in action--one in which security is pervasive across all elements of the network. Enterasys' Secure Networks approach is vastly superior to the traditional security method, in which security devices are added on to the existing infrastructure," said Mark Aslett, president of Enterasys Networks. "Our integrated approach enables customers to build high-performance, highly resilient Secure Networks that deliver continuity and control to drive real-time business communications."

The Enterasys Secure Networks Advantage

Enterasys' industry-leading Secure Networks technology and solutions provide the highest 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 Bytes Technology Networks

Bytes Technology Networks, a division of Bytes Technology Group South Africa (Pty) Ltd, a subsidiary of the JSE-listed Bytes Technology Group (BTG) and a member of the Altron group, provides its clients with world-class managed services and networks, based on platforms, processes and methodologies from acknowledged industry leaders.

Bytes Technology Networks' offering include: Software licensing and consultancy, software asset management and auditing, enterprise and storage solutions, managed and outsourced support services, network security, and computing mobility.

BTG includes: Bytes Technology Networks, Bytes Business Solutions, Bytes Software, Bytes Technology Group UK, Bytes Document Solutions (formerly Xerox SA), Bytes Specialised Solutions (formerly NDS), Plato Computer Services (UK), Bytes Communication Systems (formerly Alcatel Business Systems) and Digital Healthcare Solutions. BTG have offices throughout South Africa, as well as in Africa and the UK.

For more information about Bytes Technology Group please visit: www.btgroup.co.za

More about licensing: www.purelicensing.co.za

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 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 publicly update such statements 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.