Exhibit 99.1

NOT FOR IMMEDIATE RELEASE

BROCADE CONTACTS
Global Public Relations	Investor Relations	Ogilvy PR
Leslie Davis	Nicole Noutsios	Ian Yellin
Tel: 408.333.5260	Tel: 510-451-2952	Tel: 415.677.2714
	Nicole@nmnadvisors.com	ian.yellin@ogilvypr.com

Brocade Reports Fourth Quarter and Full Fiscal Year 2007 Results
Revenue and Profit Grow; Company Increases Share Buyback Authorization

SAN JOSE, Calif., Nov. 29 /PRNewswire-FirstCall/ — — Brocade^® (Nasdaq: BRCD), the leader in data center networking solutions that help enterprises connect and manage their information, today reported financial results for its fourth fiscal quarter and full fiscal year 2007, which ended October 27, 2007. Revenues for Q4 07 were $340.0 million, up 63% from the same period a year ago. Revenues for fiscal year 2007 were $1,236.9 million, up 65% from the Company’s fiscal 2006 revenue of $750.6 million.

Commenting on the Company’s fourth quarter and fiscal year 2007 results, Michael Klayko, Brocade CEO, said, “We are very pleased with our Q4 results. Brocade continues to execute exceptionally well and we have further strengthened both our profitability and business fundamentals. During fiscal year 2007, we continued to drive the key growth initiatives that will keep us at the forefront of the evolving data center market.”

Reporting on a GAAP basis, net income for Q4 07 was $32.0 million, or $0.08 per share basic and diluted. This represents a 200% increase from GAAP net income of $10.7 million, or $0.03 per share basic and diluted in Q3 07, and a 60% increase from GAAP net income of $20.0 million, or $0.07 per share basic and diluted in Q4 06.

Non-GAAP net income for Q4 07 was $66.5 million, or $0.17 per share basic and $0.16 per share diluted. This represents a 34% increase from non-GAAP net income of $49.5 million, or $0.13 per share basic and $0.12 per share diluted in Q3 07, and a 69% increase from non-GAAP net income of $39.4 million, or $0.15 per share basic and $0.14 per share diluted in Q4 06. Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. A detailed reconciliation between GAAP and non-GAAP information is contained in the tables included herein.

Note: Periods prior to Q2 07 referenced in this press release do not include McData results.

Fourth Fiscal Quarter 2007 Financial Highlights and Additional Financial Information

• Q4 07 non-GAAP gross margin was 58.5%, compared to non-GAAP gross margin of 55.0% in Q3 07 and 62.1% in Q4 06.

• Q4 07 non-GAAP operating margin was 23.3%, compared to non-GAAP operating margin of 19.2% in Q3 07 and 21.5% in Q4 06.

• In Q4 07, as a percent of total, OEM revenues were 85% and Channel/Direct were 15%. This compares to 84% and 16%, respectively in Q3 07 and 91% and 9%, respectively in Q4 06. Three OEM customers, EMC, HP, and IBM, each accounted for 10% or more of total revenues and together represented approximately 67% of total revenues in Q4 07. The same three customers

Brocade
1745 Technology Dr., San Jose, CA 95110
T. 408.333.8000 F. 408.333.8101
www.brocade.com

	each accounted for 10% or more of total revenues and together represented approximately 64% of total revenues in Q3 07 and 74% in Q4 06.
•	In Q4 07, as a percent of total, domestic revenue was 60% and international was 40%. This compares to 58% and 42%, respectively in Q3 07 and 63% and 37%, respectively, in Q4 06.
•	Service revenue accounted for 16% of total revenue in Q4 07, compared with 14% of total revenue in Q3 07 and 8% of total revenue in Q4 06.
•	The Company’s total installed base of SAN ports is approximately 15.1 million.
•	Sequential Average Selling Price (ASP) declines were in the low single digits in Q4 07.
•	In Q4 07 net stock-based compensation expense was $12.4 million and has been excluded from the Company’s non-GAAP results.
•	Q4 07 cash flow from operations was $54.5 million, compared to $36.3 million in Q3 07 and $52.8 million in Q4 06.
•	Cash and cash equivalents and investments at the end of Q4 07, net of the Company’s convertible debt, were $625.8 million, compared to $639.2 million at the end of Q3 07 and $582.6 million at the end of Q4 06.
•	In Q4 07, the Company repurchased $50.0 million of its common stock, representing 6.6 million shares, compared with $81 million spent in Q3 07 to repurchase 9.4 million shares. The Company’s Board of Directors authorized an additional $500 million for the repurchase of the Company’s common stock. This brings the total authorization by the Board of Directors to $800 million. As of the end of Q407, the Company had $583 million remaining under its $800 million in total stock buyback authorization.
•	Day sales outstanding in accounts receivable for Q4 07 were 47 days, compared to 45 days in Q3 07 and 43 days in Q4 06.
•	Q4 07 capital expenditures were $15.0 million. This compares to $14.0 million in Q3 07 and $7.5 million in Q4 06.
•	As of October 27, 2007, the Company had 2,368 employees, compared with 2,376 employees as of July 28, 2007 and 1,440 employees as of October 27, 2006.

Fourth Fiscal Quarter 2007 Business Highlights

• The Company had a record quarter from its director product family, driven by strong demand for the Brocade 48K director and better than expected results on M Class directors.

• Brocade announced an industry first during the fourth fiscal quarter, with the addition of 8 Gbit/sec Fibre Channel performance levels and expanded interoperability for its flagship 48K director.

• The Company announced that both IBM and HDS will adopt and resell Brocade’s StorageX File Virtualization products, further validating the potential in the emerging File Area Network (FAN) market.

• In its services business, Brocade announced strong growth in the number of on-site, resident consultants and direct support agreements with end-user customers, further validating the value of the Company’s expertise and experience in the evolving data center.

• In Q4 07, Brocade announced the Brocade Data Center Fabric (DCF) architecture, an innovative Data Center networking architecture, which responds to the urgent needs of businesses to make their data centers more efficient, reliable, and adaptable.

• The Company also announced that it recently reorganized its management structure to provide more dedicated focus on the Company’s growth opportunities, as well as allow the Company to more easily accommodate and assimilate future acquisitions and new business initiatives. The new structure is organized around four distinct Business Units, each with its own general manager.

Non-GAAP Financial Measures

This press release and the related conference call contain non-GAAP financial measures. In evaluating the Company’s performance, management uses certain non-GAAP financial measures to supplement consolidated financial statements prepared under GAAP.

Management believes that non-GAAP net income and other non-GAAP measures used in this press release allows management to gain a better understanding of the Company’s comparative operating performance from period-to-period and to its competitors’ operating results. Management also believes these non-GAAP measures help indicate the Company baseline performance before gains, losses or charges that are considered by management to be outside on-going operating results. Accordingly, management uses these non-GAAP measures for planning and forecasting of future periods and in making decisions regarding operations performance and the allocation of resources. Management believes these non-GAAP earnings measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:

• the ability to make more meaningful period-to-period comparisons of the Company’s on-going operating results;

• the ability to better identify trends in the Company’s underlying business and perform related trend analysis;

• a better understanding of how management plans and measures the Company’s underlying business; and

• an easier way to compare the Company’s most recent results of operations against investor and analyst financial models.

Management excludes certain gains or losses and benefits or costs in determining non-GAAP net income that are the result of infrequent events, or arise outside the ordinary course of our continuing operations. Management believes that it is appropriate to evaluate the Company’s operating performance by excluding those items that are not indicative of ongoing operating results or limit comparability. Such items include: (i) legal fees associated with indemnification obligations to former employees and other related costs, (ii) SEC investigation and other related costs, (iii) acquisition and integration costs, (iv) gain on sale of investments, (v) costs associated with facilities lease losses, (vi) gain on termination of an interest rate swap agreement and (vii) call premium on debt redemption.

Management also excludes the following non-cash charges in determining non-GAAP net income: (i) stock-based compensation and (ii) amortization of purchased intangible assets. Because of varying available valuation methodologies, subjective assumptions and the variety of award types, management believes that the exclusion of stock-based compensation allows for more accurate comparisons of our operating results to our peer companies. Further, management believes that excluding stock-based compensation expense allows for a more accurate comparison of our financial results to previous periods during which our equity-based awards were not required to be reflected on our income statement. Management believes that the expense associated with the amortization of acquisition-related intangible assets is appropriate to be excluded because a significant portion of the purchase price for acquisitions may be allocated to intangible assets that have short lives and exclusion of the amortization expense allows comparisons of operating results that are consistent over time for both the Company’s newly acquired and long-held businesses.

Finally, management believes that it is appropriate to exclude the tax effects of the items noted above in order to present a more meaningful measure on non-GAAP net income.

Limitations. These non-GAAP measures have limitations, however, because they do not include all items of income and expense that impact the Company. Management compensates for these limitations by also considering the Company’s GAAP results. The non-GAAP financial measures the Company uses are not prepared in accordance with, and should not be considered an alternative to, measurements required by GAAP, such as operating income, net income and income per share, and should not be considered measures of the Company’s liquidity. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. In addition, these non-GAAP financial measures may not be comparable to similar measures reported by other companies.

Fourth Quarter Fiscal 2007 Conference Call and Web Cast Information

Brocade management will host a conference call to discuss fourth quarter and full fiscal year 2007 results on Thursday, November 29, 2007 at 1:30 p.m. Pacific Time. To access the live Web Cast, please visit Brocade’s Website at http://www.brocade.com/investors at least 20 minutes prior to the call to download any necessary audio or plug-in software. A telephone replay will be available approximately two hours after the conference ends and will be available until 12:00 p.m. Pacific Time on December 6, 2007. A replay of the conference call will be available via the Web Cast at http://www.brocade.com/investors for approximately twelve months. To access the replay, please dial 888-286-8010 for domestic access and +617-801-6888 for international callers; the access code for the telephone replay is #44627068.

Cautionary Statement

This press release contains statements that are forward-looking in nature, including statements regarding the Company’s profitability, growth opportunities and product and service offerings. These statements are based on current expectations on the date of this press release and involve a number of risks and uncertainties, which may cause actual results to differ significantly from such estimates. The risks include, but are not limited to, the degree of market adoption of the Company’s new product and service offerings; market competition; the effect of changes in IT spending levels; the Company’s ability to anticipate future OEM and end-user product needs and to accurately forecast end-user demand; dependence on strategic partners;and the Company’s ability to manage its business effectively in a rapidly evolving market. Certain of these and other risks are set forth in more detail in “Item 1A. Risk Factors” in Brocade’s Quarterly report on Form 10-Q for the fiscal quarter ended July 28, 2007. Brocade does not assume any obligation to update or revise any such forward-looking statements, whether as the result of new developments or otherwise.

About Brocade

Brocade is the leading provider of data center networking solutions that help enterprises connect and manage their information. Organizations that use Brocade products and services are better able to optimize their IT infrastructures and ensure compliant data management. For more information, visit the Brocade Web site at http://www.brocade.com or contact the company at info@brocade.com.

Brocade, Brocade B weave logo, Fabric OS, File Lifecycle Manager, McDATA, MyView, Secure Fabric OS, SilkWorm, and StorageX are registered trademarks and the Brocade B-wing logo and Tapestry are trademarks of Brocade Communications Systems, Inc., in the United States and/or in other countries. FICON is a registered trademark of IBM Corporation in the U.S. and other countries. All other brands, products, or service names are or may be trademarks or service marks of, and are used to identify, products or services of their respective owners.

# # #

BROCADE COMMUNICATIONS SYSTEMS, INC.
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

	Three Months Ended						Twelve Months Ended
	October 27,			October 28,			October 27,			October 28,
	2007			2006			2007			2006
Net revenues
Product	$	286,020		$	192,763		$	1,076,529		$	692,940
Services		53,964			16,058			160,334			57,652
Total revenues		339,984			208,821			1,236,863			750,592
Cost of revenues
Product		125,824			71,216			470,977			269,430
Services		30,750			9,956			104,474			35,754
Total cost of revenues		156,574			81,172			575,451			305,184
Gross margin		183,410			127,649			661,412			445,408
Operating expenses
Research and development		58,530			43,427			213,311			164,843
Sales and marketing		56,018			38,752			211,168			139,434
General and administrative		13,470			7,566			46,980			31,089
Legal fees associated with indemnification obligations and other related costs, net		7,811			3,475			46,257			13,654
Acquisition and integration costs		302			9,061			19,354			9,646
Provision for SEC settlement		—			—			—			7,000
Amortization for intangible assets		7,909			888			24,719			2,294
Facilities lease losses		—			—			—			3,775
Total operating expenses		144,040			103,169			561,789			371,735
Income from operations		39,370			24,480			99,623			73,673
Interest and other income, net		9,937			6,705			38,501			29,098
Interest expense		(1,673	)		(1,604	)		(6,414	)		(7,082	)
Gain on investments		11,373			—			13,205			2,663
Income before provision for income taxes		59,007			29,581			144,915			98,352
Income tax provision		26,987			9,624			68,043			30,723
Net income	$	32,020		$	19,957		$	76,872		$	67,629
Net income per share — Basic	$	0.08		$	0.07		$	0.21		$	0.25
Net income per share — Diluted	$	0.08		$	0.07		$	0.21		$	0.25
Shares used in per share calculation — Basic		387,400			269,027			362,070			269,602
Shares used in per share calculation — Diluted		408,844			276,113			377,558			274,142

BROCADE COMMUNICATIONS SYSTEMS, INC.
GAAP CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

	October 27,			October 28,
	2007			2006
Assets
Current assets:
Cash and cash equivalents	$	315,755		$	274,368
Short-term investments		325,846			267,694
Total cash, cash equivalents, and short-term investments		641,601			542,062
Marketable equity securities		14,205			—
Accounts receivable, net		175,755			98,394
Inventories		18,017			8,968
Prepaid expenses and other current assets		62,622			43,365
Total current assets		912,200			692,789
Long-term investments		137,524			40,492
Property and equipment, net		204,052			104,299
Goodwill		384,376			41,013
Intangible assets, net		272,652			15,465
Other assets		19,296			6,660
Total assets	$	1,930,100		$	900,718
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	108,810		$	56,741
Accrued employee compensation		76,017			62,842
Deferred revenue		94,533			52,051
Current liabilities associated with lease losses		12,807			4,931
Purchase commitments		23,176			6,104
Income tax payable		—			39,076
Other accrued liabilities		94,358			42,811
Total current liabilities		409,701			264,556
Convertible subordinated debt		167,498			—
Non-current liabilities associated with lease losses		25,742			11,105
Non-current liabilities — deferred tax		22,781			—
Non-current deferred revenue		36,344			8,827
Other non-current liabilities		1,376			—
Stockholders’ equity
Common stock		1,463,169			889,250
Accumulated other comprehensive loss		(1,180	)		(817	)
Accumulated deficit		(195,331	)		(272,203	)
Total stockholders’ equity		1,266,658			616,230
Total liabilities and stockholders’ equity	$	1,930,100		$	900,718

BROCADE COMMUNICATIONS SYSTEMS, INC.
GAAP CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
For the Three Months Ended October 27, 2007 and October 28, 2006
(in thousands)
(unaudited)

	Three Months Ended
	October 27,			October 28,
	2007			2006
Cash flows from operating activities:
Net income	$	32,020		$	19,957
Adjustments to reconcile net income to net cash provided by operating activities:
Excess tax benefit from employee stock plans		9,197			(6,982	)
Depreciation and amortization		31,856			7,658
Loss on disposal of property and equipment		400			129
Amortization of debt issuance costs		—			133
Net (gains) losses on investments and marketable equity securities		(11,694	)		—
Non-cash compensation expense		12,499			8,040
Provision for doubtful accounts receivable and sales allowance		1,204			861
Changes in operating assets and liabilities:
Accounts receivable		(12,857	)		(20,092	)
Inventories		3,430			191
Prepaid expenses and other assets		5,600			(6,551	)
Accounts payable		(22,440	)		20,839
Accrued employee compensation		228			16,684
Deferred revenue		2,061			3,592
Other accrued liabilities		5,555			9,667
Liabilities associated with lease losses		(2,520	)		(1,283	)
Net cash provided by operating activities		54,539			52,843
Cash flows from investing activities:
Purchases of property and equipment		(15,013	)		(7,480	)
Purchases of short-term investments		(173,494	)		(66,621	)
Purchases of marketable equity securities		(15,930	)
Proceeds from sale of marketable equity securities and equity investments		11,694			—
Proceeds from maturities and sale of short-term investments		176,780			118,418
Purchases of long-term investments		(47,637	)		(27,014	)
Purchases of restricted short-term investment		—			3,358
Proceeds from maturities and sale of long-term investments		1,752			—
Proceeds from the maturities of restricted short-term investments		—			277,412
Net cash provided by (used in) investing activities		(61,848	)		298,073
Cash flows from financing activities:
Payments on capital lease obligations		(23	)		—
Common stock repurchases		(50,410	)		—
Redemption of outstanding convertible debt		—			(278,883	)
Excess tax benefit from employees stock plans		(9,197	)		6,982
Proceeds from issuance of common stock, net		9,968			10,927
Net cash used in financing activities		(49,662	)		(260,974	)
Effect of exchange rate fluctuations on cash and cash equivalents		(1,682	)		(58	)
Net increase (decrease) in cash and cash equivalents		(58,653	)		89,884
Cash and cash equivalents, beginning of period		374,408			184,484
Cash and cash equivalents, end of period	$	315,755		$	274,368

BROCADE COMMUNICATIONS SYSTEMS, INC.
GAAP CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
For the Twelve Months Ended October 27, 2007 and October 28, 2006
(in thousands)
(unaudited)

	Twelve Months Ended
	October 27,			October 28,
	2007			2006
Cash flows from operating activities:
Net income	$	76,872		$	67,629
Adjustments to reconcile net income to net cash provided by operating activities:
Excess tax benefit from employee stock plans		77			(15,792	)
Depreciation and amortization		101,416			34,731
Loss on disposal of property and equipment		1,213			438
Amortization of debt issuance costs		—			1,430
Net (gains) losses on investments and marketable equity securities		(11,694	)		(2,685	)
Non-cash compensation expense		36,942			31,407
Provision for doubtful accounts receivable and sales allowance		4,318			3,526
Provision for SEC settlement		—			7,000
Non-cash facilities lease loss expense		—			3,775
Changes in operating assets and liabilities:
Accounts receivable		28,497			(31,244	)
Inventories		3,481			2,062
Prepaid expenses and other assets		3,523			(19,839	)
Accounts payable		10,075			32,963
Accrued employee compensation		(37,473	)		25,080
Deferred revenue		17,162			15,390
Other accrued liabilities		(55,967	)		15,858
Liabilities associated with lease losses		(8,039	)		(4,869	)
Net cash provided by operating activities		170,403			166,860
Cash flows from investing activities:
Purchases of property and equipment		(56,538	)		(30,430	)
Purchases of short-term investments		(571,357	)		(325,884	)
Purchases of marketable equity securities		(15,930	)
Proceeds from sales of property and equipment		1,336			—
Proceeds from sale of marketable equity securities and equity investments		11,694			10,185
Proceeds from maturities of restricted short-term investments		—			281,414
Proceeds from maturities and sale of short-term investments		764,939			363,873
Purchases of long-term investments		(200,239	)		(40,267	)
Proceeds from maturities and sale of long-term investments		12,614			—
Purchases of non-marketable minority equity investments		(5,000	)		(4,575	)
Cash paid in connection with acquisitions, net of cash acquired		(7,704	)		(59,887	)
Increase/Decrease in restricted cash		12,422			—
Cash acquired on merger with McDATA		147,407			—
Net cash provided by investing activities		93,644			194,429
Cash flows from financing activities:
Payments on capital lease obligations		(735	)		—
Common stock repurchases		(191,293	)		(40,206	)
Termination of interest swap		(4,989	)		—
Redemption of outstanding convertible debt		(124,185	)		(278,883	)
Excess tax benefit from employees stock plans		(77	)		15,792
Proceeds from issuance of common stock, net		100,638			34,255
Net cash used in financing activities		(220,641	)		(269,042	)
Effect of exchange rate fluctuations on cash and cash equivalents		(2,019	)		120
Net increase in cash and cash equivalents		41,387			92,367
Cash and cash equivalents, beginning of period		274,368			182,001
Cash and cash equivalents, end of period	$	315,755		$	274,368

BROCADE COMMUNICATIONS SYSTEMS, INC.
RECONCILIATION BETWEEN GAAP AND NON-GAAP NET INCOME
(in thousands, except per share data)
(unaudited)

	Three Months Ended
	October 27,			July 28,			October 28,
	2007			2007			2006
Net income on a GAAP basis	$	32,020		$	10,690		$	19,957
Adjustments:
Stock-based compensation expense included in cost of revenues		4,065			3,128			2,117
Amortization of intangible assets expense included in cost of revenues		11,328			11,328			—
Total gross margin adjustments		15,393			14,456			2,117
Legal fees associated with indemnification obligations and other related costs, net		7,811			17,984			—
SEC investigation and other related costs		—			—			3,475
Stock-based compensation expense included in research and development		3,649			2,992			2,519
Stock-based compensation expense included in sales and marketing		3,163			2,453			1,682
Stock-based compensation expense included in general and administrative		1,622			1,139			688
Amortization of intangible assets expense included in operating expenses		7,909			7,924			888
Acquisition and integration costs		302			4,055			9,061
Total operating expense adjustments		24,456			36,547			18,313
Total operating income adjustments		39,849			51,003			20,430
Gain on termination of swap		—			(367	)		—
Call premium on redeemed debt		—			—			1,115
Gain on investments		(10,869	)		(895	)		—
Income tax effect of adjustments		5,518			(10,937	)		(2,076	)
Non-GAAP net income	$	66,518		$	49,494		$	39,426
Non-GAAP net income per share — Basic	$	0.17		$	0.13		$	0.15
Non-GAAP net income per share — Diluted	$	0.16		$	0.12		$	0.14
Shares used in non-GAAP per share calculation — Basic		387,400			392,450			269,027
Shares used in non-GAAP per share calculation — Diluted		408,844			407,113			276,113

BROCADE COMMUNICATIONS SYSTEMS, INC.
RECONCILIATION BETWEEN GAAP AND NON-GAAP NET INCOME
(in thousands, except per share data)
(unaudited)

	Twelve Months Ended
	October 27,			October 28,
	2007			2006
Net income on a GAAP basis	$	76,872		$	67,629
Adjustments:
Stock-based compensation expense included in cost of revenues		10,870			7,616
Amortization of intangible assets expense included in cost of revenues		33,985			—
Total gross margin adjustments		44,855			7,616
Legal fees associated with indemnification obligations and other related costs, net		46,257			13,654
SEC investigation and other related costs		—			7,000
Stock-based compensation expense included in research and development		10,696			10,709
Stock-based compensation expense included in sales and marketing		8,685			6,313
Stock-based compensation expense included in general and administrative		4,358			2,911
Amortization of intangible assets expense included in operating expenses		24,719			2,294
Acquisition and integration costs		19,354			9,646
Facilities lease loss adjustments and restructuring		—			3,775
Total operating expense adjustments		114,069			56,302
Total operating income adjustments		158,924			63,918
Gain on termination of swap		(367	)		—
Call premium on redeemed debt		—			1,115
Gain on investments		(11,619	)		(2,685	)
Income tax effect of adjustments		(11,645	)		(7,220	)
Non-GAAP net income	$	212,165		$	122,757
Non-GAAP net income per share — Basic	$	0.59		$	0.46
Non-GAAP net income per share — Diluted	$	0.56		$	0.45
Shares used in non-GAAP per share calculation — Basic		362,070			269,602
Shares used in non-GAAP per share calculation — Diluted		377,558			274,142

See explanation of non-GAAP information included herein.