Exhibit 99.1

FOR IMMEDIATE RELEASE

For more information, contact:
Extreme Networks
Investor Relations	Public Relations
408/579-3030	408/579-2963
investor_relations@extremenetworks.com	vbellofatto@extremenetworks.com

EXTREME NETWORKS REPORTS SECOND QUARTER RESULTS

Generates sequential increases in net income and cash; repurchases $6.8 million of stock

SANTA CLARA, Calif., Jan. 24, 2006 – Extreme Networks, Inc. (Nasdaq: EXTR), the leader in open converged networks, today announced financial results for its fiscal second quarter ended Jan. 1, 2006.

Net revenue for the quarter was $92.8 million, compared to $97.9 million in the first quarter of fiscal 2006. Net income for the second quarter was $5.7 million, or $0.05 per diluted share on a GAAP basis. Excluding stock-based compensation expense of $1.6 million, non-GAAP net income for the quarter was $7.2 million or $0.06 per diluted share, an increase sequentially from $6.2 million or $0.05 per diluted share reported in the first fiscal quarter of 2006, excluding stock-based compensation of $1.9 million.

In the second quarter of fiscal 2005 the Company reported revenue of $100.3 million and net income of $10.0 million or $0.08 per diluted share on a GAAP basis. Results in the year-ago quarter include $3.9 million or $0.03 per diluted share for a consumption tax refund received. Previous year’s results include expenses for stock-based compensation of $0.1 million.

“Our sequential improvements in gross margins, profitability and cash generated from operations were all very positive for us,” said Gordon L. Stitt, CEO of Extreme Networks. “Our goal going forward will be to couple our improved operating leverage with higher revenue growth rates.”

Revenues in the U.S. were $31.9 million in the quarter, representing 34 percent of total consolidated revenue, down from $43.4 million in the same quarter a year ago. International

revenues were $60.9 million or 66 percent of total revenues, compared to $56.9 million or 57 percent in the second quarter of last fiscal year.

Gross margin for the second quarter on a GAAP basis was 54.7 percent. Excluding expense for stock-based compensation of $0.3 million in the current quarter, gross margin was 55.0 percent, an increase from 53.8 percent in the same quarter a year ago. This marks the eighth consecutive quarter in which gross margins have increased on a year-over-year basis.

Operating expenses for the quarter, on a GAAP basis, were $45.7 million. Excluding stock-based compensation of $1.3 million in the current quarter, operating expenses were $44.4 million or 47.8% of sales, a reduction of $1.7 million compared to the same quarter a year ago.

Cash provided by operating activities during the second quarter was $12.7 million. The Company began to execute on its approved $50 million share repurchase program by repurchasing 1.4 million shares for $6.8 million, leaving cash, cash equivalents and investments at the end of the quarter of $456.3 million, an increase of $6.0 million from the first quarter of fiscal 2006.

Management Expectations

The Company currently anticipates that revenues for its third fiscal quarter, ending April 2, 2006, will be in the range of $90 million to $95 million. The Company anticipates that gross margins will be flat to slightly down from the 55 percent reported in the second quarter. The Company anticipates that operating expenses will be in the range of $44 million to $46 million. Gross margin and operating expense expectations do not include stock-based compensation expense.

Quarterly Business Highlights

• Extreme Networks continues to offer IT professionals the tools to help them manage networks with the new Premier Services Program for the connected enterprise.

• Increases market share in Ethernet switching in 10 Gigabit Ethernet and Power over Ethernet categories according to Dell’Oro Group reports.

• Extreme Networks delivers network foundation for leading education show, 2005 CIT.

• Received 2005 Product Line Strategy Award by leading research firm Frost & Sullivan; the Company was singled out for its innovative approach to providing an integrated network solution.

• Farmers Telephone Cooperative sets foundation for video, data and voice services with Extreme Networks’ award-winning Metro Ethernet solutions.

• Extreme Networks demonstrates integrated network security at CSI conference.

• Extreme Networks showcases open converged networks at first ever Interop New York; Company builds show network, offers voice, video and data.

Conference Call

Extreme Networks will host a conference call to discuss these results today at 5:00 p.m. EST (2:00 p.m. PST), for more information visit http://www.extremenetworks.com/aboutus/investor/ Financial information to be discussed during the conference call is posted on the Investor Relations section of the Company’s website (www.extremenetworks.com).

Extreme Networks

Extreme Networks is a leader in open converged networks. Its innovative network architecture provides Enterprises and Metro Service Providers with the resiliency, adaptability and simplicity required for a true converged network that supports voice, video and data, over a wired and wireless infrastructure, while delivering high-performance and advanced security features. For more information, please visit www.extremenetworks.com

Non-GAAP Financial Measures

Extreme Networks provides all financial information required in accordance with generally accepted accounting principles (GAAP). In the first fiscal quarter of 2006, the Company adopted Financial Accounting Standards Board Statement No. 123(R), which requires companies to recognize the compensation cost associated with share-based payments in their financial statements. As a result, the financial statements for the first and second fiscal quarters of 2006 include the new stock-based compensation expense of $1.9 million and $1.6 million, respectively; however, comparable prior year periods are not required to be restated. Therefore, to supplement Extreme Networks’ consolidated financial statements presented in accordance with GAAP, the Company has provided non-GAAP financial information, which is adjusted to

exclude all stock-based compensation expense. This non-GAAP reporting provides for comparable financial information and can enhance the understanding of the Company’s ongoing performance as a business. Therefore, Extreme Networks plans to use both GAAP and non-GAAP reporting internally to evaluate and manage its operations.

# # #

Extreme Networks is a registered trademark of Extreme Networks, Inc., in the United States and other countries. All other marks are the property of their respective holders.

This announcement contains forward-looking statements that involve risks and uncertainties, including statements regarding our expectations for future operating results. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including, but not limited to: our effectiveness in controlling expenses, fluctuations in demand for our products and services; a highly competitive business environment for network switching equipment; the possibility that we might experience delays in the development of new technology and products; customer response to our new technology and product; and a dependency on third parties for certain components and for the manufacturing of our products. We undertake no obligation to update the forward-looking information in this release. More information about potential factors that could affect our business and financial results is included in our filings with the Securities and Exchange Commission, including, without limitation, under the captions: “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and “Risk Factors,” which is on file with the Securities and Exchange Commission (http://www.sec.gov).

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per-share amounts)

(Unaudited)

	Three Months Ended				Six Months Ended
	January 1, 2006		December 26, 2004		January 1, 2006		December 26, 2004
Net revenues:
Product	$	76,998	$	85,763	$	158,915	$	166,935
Service		15,789		14,538		31,794		28,452
Total net revenues		92,787		100,301		190,709		195,387
Cost of revenues:
Product (1)		33,517		37,957		69,443		74,259
Service (1)		8,488		8,387		17,196		16,615
Total cost of revenues		42,005		46,344		86,639		90,874
Gross margin:
Product		43,481		47,806		89,472		92,676
Service		7,301		6,151		14,598		11,837
Total gross margin		50,782		53,957		104,070		104,513
Operating expenses:
Sales and marketing (1)		23,962		23,766		49,878		46,996
Research and development (1)		15,670		14,858		31,933		30,257
General and administrative (1)		6,052		7,539		13,227		14,662
Amortization of deferred stock compensation (1)		—		5		—		67
Total operating expenses		45,684		46,168		95,038		91,982
Operating income		5,098		7,789		9,032		12,531
Other income, net		1,427		3,616		2,356		3,754
Income before income taxes		6,525		11,405		11,388		16,285
Provision for income taxes		875		1,455		1,385		2,209
Net income	$	5,650	$	9,950	$	10,003	$	14,076
Net income per share - basic	$	0.05	$	0.08	$	0.08	$	0.12
Net income per share - diluted	$	0.05	$	0.08	$	0.08	$	0.11
Shares used in per share calculation - basic		123,007		121,042		123,013		120,839
Shares used in per share calculation - diluted		124,806		124,390		124,762		123,853
(1)      Includes stock-based compensation expense as follows:
Cost of product revenue	$	196		—	$	366		—
Cost of service revenue		92		—		200		—
Sales and marketing		594	$	13		1,376	$	25
Research and development		442		91		967		94
General and administrative		250		—		535		—
Amortization of deferred stock compensation		—		5		—		67
Total stock-based compensation expense	$	1,574	$	109	$	3,444	$	186

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

	January 1, 2006		July 3, 2005
Assets
Current assets:
Cash and cash equivalents	$	86,636	$	127,470
Short-term investments		280,522		127,889
Accounts receivable, net		33,585		30,778
Inventories		21,935		25,943
Prepaid expenses and other current assets		6,529		12,410
Total current assets		429,207		324,490
Property and equipment, net		47,945		50,438
Marketable securities		89,117		185,045
Other assets		21,198		23,641
Total assets	$	587,467	$	583,614
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	22,244	$	18,283
Deferred revenue		37,480		36,688
Accrued warranty		7,022		7,471
Convertible subordinated notes		200,000		—
Other accrued liabilities		39,793		42,462
Total current liabilities		306,539		104,904
Other long-term liabilities		13,936		16,913
Deferred revenue, less current portion		9,873		13,785
Convertible subordinated notes		—		200,000
Total stockholders’ equity		257,119		248,012
Total liabilities and stockholders’ equity	$	587,467	$	583,614

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Six Months Ended
	January 1, 2006			December 26, 2004
Cash flows from operating activities:
Net income	$	10,003		$	14,076
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		6,097			8,657
Provision for doubtful accounts		716			—
Provision for excess and obsolete inventory		155			260
Deferred income taxes		60			150
Amortization of warrant		2,667			3,783
Amortization of deferred stock compensation		—			67
Stock-based compensation		3,444			—
Loss on disposal of assets		—			50
Net changes in operating assets and liabilities:
Accounts receivable		(2,298	)		2,161
Inventories		3,854			3,083
Prepaid expenses and other current and noncurrent assets		4,431			(2,524	)
Accounts payable		3,961			3,566
Deferred revenue		(3,120	)		(5,612	)
Accrued warranty		(449	)		(204	)
Other accrued liabilities		(6,018	)		(6,118	)
Net cash provided by operating activities		23,503			21,395
Cash flows from investing activities:
Capital expenditures		(3,604	)		(3,402	)
Purchases and maturities of investments, net		(56,639	)		(7,487	)
Net cash used in investing activities		(60,243	)		(10,889	)
Cash flows from financing activities:
Proceeds from issuance of common stock		2,715			2,872
Repurchase of common stock		(6,809	)		—
Net cash provided by (used in) financing activities		(4,094	)		2,872
Net increase (decrease) in cash and cash equivalents		(40,834	)		13,378
Cash and cash equivalents at beginning of period		127,470			59,164
Cash and cash equivalents at end of period	$	86,636		$	72,542

EXTREME NETWORKS, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In thousands, except per-share amounts)

(Unaudited)

	Three Months Ended				Six Months Ended
	January 1, 2006		December 26, 2004		January 1, 2006		December 26, 2004
GAAP net income	$	5,650	$	9,950	$	10,003	$	14,076
Adjustments:
Stock-based compensation		1,574		109		3,444		186
Income tax effect		—		—		—		—
Total non-GAAP adjustments		1,574		109		3,444		186
Non-GAAP net income	$	7,224	$	10,059	$	13,447	$	14,262
Non-GAAP net income per share — basic	$	0.06	$	0.08	$	0.11	$	0.12
Non-GAAP net income per share — diluted	$	0.06	$	0.08	$	0.11	$	0.12
Shares used in per share calculation — basic		123,007		121,042		123,013		120,839
Shares used in per share calculation — diluted		124,806		124,390		124,762		123,853