Exhibit 99.1

FOR IMMEDIATE RELEASE

For more information, contact:

Greg Cross

Extreme Networks Public Relations

408/579-3483

gcross@extremenetworks.com

EXTREME NETWORKS COMPLETES STOCK OPTIONS REVIEW AND SUBMITS SEC FILINGS

Schedules Q4’07 conference call

SANTA CLARA, Calif.; June 28, 2007 – Extreme Networks, Inc. (Nasdaq: EXTR), today announced that it has completed its review of its historical stock option grant practices and filed with the Securities and Exchange Commission its Form 10-K for the fiscal year ended July 2, 2006 (“2006 Form 10-K”), as well as its Form 10-Qs for the fiscal quarters ended October 1, 2006, December 31, 2006, and April 1, 2007. Those filings had been delayed pending the conclusion of a review of the Company’s historical stock option practices by a Special Committee of the Board of Directors, and the subsequent decision to restate financial results for certain prior periods.

Summary of Completed Stock Options Review

The Special Committee of the Board of Directors has completed its investigation into the Company’s historical stock option practices and reported its findings and recommendations to the Board. The Special Committee reviewed and tested over 8,000 grants, including all grants to Board members, officers, and executive level employees between April 9, 1999, the date of the Company’s initial public offering, and September 30, 2006, (the “Review Period”).

The Special Committee found deficiencies in the Company’s processes for approving and documenting option grants, which resulted in the Company erroneously treating the stated grant date as the measurement date for financial accounting purposes with respect to certain options.  These deficiencies occurred predominantly during 1999 through 2001 (fiscal 2000 through 2002), but continued in some respects until fiscal 2004. No issues were found with the accounting for options granted during fiscal 2005 or 2006.

The Special Committee found no evidence of fraud and concluded that none of the Company personnel involved intended to mislead investors or were aware that the Company’s stock option granting and documentation practices had resulted or would result in a material misstatement of the Company’s financial results. The Special Committee found no evidence of misconduct by current management, and found no involvement by (among others) the current CEO, CFO, Controller, or Vice President, General Counsel in any of the grants for which inaccurate measurement dates were used. The Special Committee also confirmed that none of the affected options granted to the Company’s officers or directors has ever been exercised.

The Company’s processes for documenting and accounting for stock options improved substantially during fiscal 2004 and were effective in enabling the Company to account properly for all stock options granted during fiscal 2005 and fiscal 2006. The Special Committee also recommended additional new processes, which the Board adopted, with regard to grants of equity compensation awards to Board members, officers, and non-officer employees. These new processes are designed to ensure that the Company continues to employ best practices and procedures with respect to equity compensation awards.

Summary of Restatement

Based on the Special Committee’s investigation, with the concurrence of management and the Audit Committee, the Company determined that the Company should have recognized approximately $223.0 million of pre-tax, non-cash, share-based compensation expense during the Review Period that was not accounted for in the Company’s previously issued financial statements. In addition, the Company should have recorded approximately $0.3 million of income tax benefits. Therefore, the Company is restating financial information in its 2006 Form 10-K for each of the fiscal years ended July 3, 2005, June 27, 2004, June 29, 2003, and June 30, 2002. On a voluntary basis, the Company is including its restated consolidated statements of operations and consolidated balance sheet data for the years ended July 1, 2001, and July 2, 2000 in Item 6 in its 2006 Form 10-K. This restatement had no impact on the Company’s consolidated statement of operations for the fiscal year ended July 2, 2006 or on the Company’s previously reported revenues for any fiscal year. The restatement also had no impact on the Company’s previously reported cash positions for any period.

Further information regarding the stock options review, the restatement, and related matters is included in the Company’s Form 10-K for the fiscal year ended July 2, 2006. Previously filed annual reports on Form 10-K and quarterly reports on Form 10-Q for the periods affected by the restatement have not been amended and, as such, should not be relied upon, and are superseded in their entirety by the information in the filings made with the SEC today, available in the Real Time SEC Filings section at http://www.extremenetworks.com/about-extreme/investor-relations.aspx.

Status of Nasdaq Listing

On June 22, 2007, the Company received a letter from The Nasdaq Listing and Hearings Review Council (the “Listing Council”), which issued a ruling granting it an extension until July 3, 2007 to file the reports filed today with the SEC. On June 25, 2007, the Company received a letter from the Nasdaq Market advising that the Board of Directors of The NASDAQ Stock Market, Inc. (the “Nasdaq Board”) had stayed the decision of the Listing Council pending further consideration by the Nasdaq Board in July 2007.

Extreme Networks believes it is now current in its SEC reporting obligations and believes that it has complied with all conditions set forth for continued listing by the Nasdaq Listing Qualifications Panel at this time. However, the Company is required under the Nasdaq Listing Qualifications to hold an annual stockholder meeting each fiscal year, and it has not held such a meeting during Fiscal 2007. Extreme Networks has scheduled an annual stockholder meeting for July 30, 2007, and filed its definitive proxy statement for that meeting today. The Company expects that Nasdaq will now conclude its review of the Company’s listing status and grant continued listing of Extreme Networks’ common stock on the Nasdaq Global Market.

Fourth Quarter Conference Call and Webcast

Extreme Networks will discuss the financial results and other information presented in its SEC filings when it issues the results of its fiscal fourth quarter and year ended July 1, 2007. Those results will be released after the close of regular market trading on Wednesday, August 1, 2007 with a conference call to be held at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). A live webcast and replay of the call will be available at http://www.extremenetworks.com/about-extreme/investor-relations.aspx.

Non-GAAP Financial Measures

Extreme Networks provides all financial information required in accordance with generally accepted accounting principles (GAAP). To supplement its consolidated financial statements presented in accordance with GAAP, the Company has provided a non-GAAP reconciliation of its Consolidated Statement of Operations for the quarters ended October 1, 2006, December 31, 2006 and April 1, 2007, which are adjusted to exclude share-based compensation expense, costs associated with the stock option Special Investigation and restructuring charges. These non-GAAP measures are not computed in accordance with GAAP and may differ from the methods used by other companies. These non-GAAP measures are not meant as a substitute for comparable GAAP measures. These measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures for comparable financial information and understanding of the Company’s ongoing performance as a business. Extreme Networks uses both GAAP and non-GAAP measures to evaluate and manage its operations.

Extreme Networks, Inc.

Extreme Networks designs, builds, and installs Ethernet infrastructure solutions that solve the toughest business communications challenges.  Our commitment to open networking sets us apart from the alternatives by delivering meaningful insight and unprecedented control to applications and services.  We believe openness is the best foundation for growth, freedom, flexibility, and choice. We focus on enterprises and service providers who demand high performance, converged networks that support voice, video and data, over a wired and wireless infrastructure.

###

This press release contains forward-looking statements, including statements regarding our belief that we have now become current in our filings with the SEC and are compliant with NASDAQ rules and the expectation that the Company will continue to be listed on the NASDAQ Global Select Market. These forward looking statements are subject to risks and uncertainties, and actual results could differ materially from those projected. These risks and uncertainties include, but are not limited to, the timing and outcome of the Nasdaq Board’s Listing Council’s, or Hearing Panel’s review of the matter. Information regarding other risks and uncertainties can be found in the Company’s most recently filed annual report on Form 10-K and other filings that have been made with the SEC.

Extreme Networks, BlackDiamond, Sentriant, and Summit are either trademarks or registered trademarks of Extreme Networks, Inc. in the United States and other countries. All other names and marks are the property of their respective owners. ^© 2007 Extreme Networks, Inc. All Rights Reserved.

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

	April 1, 2007			December 31, 2006			October 1, 2006			July 2, 2006
ASSETS
Current assets:
Cash and cash equivalents	$	84,549		$	64,667		$	138,282		$	92,598
Short-term investments		99,980			112,482			251,385			297,726
Accounts receivable, net		25,088			30,248			27,845			27,681
Inventories, net		22,246			23,202			24,077			19,303
Prepaid expenses and other current assets, net		12,946			11,440			8,328			9,420
Total current assets		244,809			242,039			449,917			446,728
Property and equipment, net		44,006			45,020			44,820			46,499
Marketable securities		30,220			27,010			33,750			42,781
Other assets, net		22,714			24,207			22,196			22,710
TOTAL ASSETS	$	341,749		$	338,276		$	550,683		$	558,718
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	19,169		$	16,739		$	24,353		$	20,138
Accrued compensation and benefits		13,103			12,223			11,992			11,758
Restructuring liabilities		3,620			5,197			6,601			5,571
Accrued warranty		7,273			6,990			7,168			7,027
Deferred revenue		32,380			32,635			33,492			35,406
Convertible subordinated notes		—			—			200,000			200,000
Other accrued liabilities		23,205			19,492			21,724			19,581
Total current liabilities		98,750			93,276			305,330			299,481
Restructuring liabilities, less current portion		8,979			9,626			10,443			11,471
Deferred revenue, less current portion		10,327			10,851			9,265			9,699
Deferred income taxes		674			654			604			579
Other long-term liabilities		2,902			3,020			1,306			1,307
Commitments and contingencies
Stockholders’ equity:
Common stock and capital in excess of par value		933,340			932,097			930,341			927,835
Treasury stock		(48,303	)		(48,303	)		(44,901	)		(33,700	)
Accumulated other comprehensive income (loss)		620			230			(390	)		(1,567	)
Accumulated deficit		(665,540	)		(663,175	)		(661,315	)		(656,387	)
Total stockholders’ equity		220,117			220,849			223,735			236,181
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	341,749		$	338,276		$	550,683		$	558,718

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended									Nine Months Ended April 1, 2007
	October 1, 2006			December 31, 2006			April 1, 2007
Net revenues:
Product	$	67,982		$	71,074		$	69,578		$	208,634
Service		15,781			15,779			15,541			47,101
Total net revenues		83,763			86,853			85,119			255,735
Cost of revenues:
Product		31,799			31,968			29,132			92,899
Service		8,813			8,409			8,121			25,344
Total cost of revenues		40,612			40,377			37,253			118,243
Gross margin:
Product		36,183			39,106			40,446			115,735
Services		6,968			7,370			7,420			21,757
Total gross margin		43,151			46,476			47,866			137,492
Operating expenses:
Sales and marketing		25,443			25,829			24,886			76,158
Research and development		15,774			15,602			18,394			49,770
General and administrative		7,605			8,790			8,929			25,324
Restructuring charge		1,534			(231	)		(157	)		1,146
Total operating expenses		50,356			49,990			52,052			152,398
Operating (loss)		(7,205	)		(3,514	)		(4,186	)		(14,906	)
Other income, net		3,064			2,227			2,018			7,309
(Loss) before income taxes		(4,141	)		(1,287	)		(2,168	)		(7,597	)
Provision for income taxes		786			573			195			1,554
Net (loss)	$	(4,927	)	$	(1,860	)	$	(2,363	)	$	(9,151	)
Net (loss) per share — basic	$	(0.04	)	$	(0.02	)	$	(0.02	)	$	(0.08	)
Net (loss) per share — diluted	$	(0.04	)	$	(0.02	)	$	(0.02	)	$	(0.08	)
Shares used in per share calculation — basic		115,653			113,644			113,585			114,294
Shares used in per share calculation — diluted		115,653			113,644			113,585			114,294

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Three Months Ended									Nine Months Ended April 1, 2007
	October 1, 2006			December 31, 2006			April 1, 2007
Cash flows from operating activities:
Net (loss)	$	(4,927	)	$	(1,860	)	$	(2,363	)	$	(9,151	)
Adjustments to reconcile net (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		2,361			1,907			1,963			6,231
Provision for doubtful accounts		2			—			—			2
Provision for excess and obsolete inventory		467			1,677			186			2,330
Deferred income taxes		25			(528	)		598			95
Amortization of warrant		1,012			1,012			1,012			3,036
Restructuring charge		1,534			(231	)		(157	)		1,146
Loss on disposal of assets		76			(71	)		12			17
Stock-based compensation		1,850			1,808			1,325			4,983
Changes in operating assets and liabilities, net
Accounts receivable		(218	)		(2,411	)		5,150			2,521
Inventories		(5,239	)		(803	)		769			(5,273	)
Prepaid expenses and other assets		647			(5,550	)		(1,594	)		(6,497	)
Accounts payable		4,215			(7,615	)		2,431			(969	)
Accrued compensation and benefits		234			231			880			1,345
Restructuring liabilities		(1,532	)		(1,991	)		(2,066	)		(5,589	)
Accrued warranty		141			(177	)		281			245
Deferred revenue		(2,348	)		729			(780	)		(2,399	)
Other accrued liabilities		2,218			(325	)		2,107			4,000
Other long-term liabilities		—			0			1,594			1,594
Net cash provided by (used in) operating activities		518			(14,198	)		11,347			(2,333	)
Cash flows from investing activities:
Capital expenditures		(758	)		(2,037	)		(960	)		(3,755	)
Purchases of investments		(76,980	)		(18,079	)		(49,011	)		(144,070	)
Proceeds from sales and maturities of investments and marketable securities		133,450			164,153			58,585			356,188
Net cash provided by investing activities		55,712			144,037			8,614			208,363
Cash flows from financing activities:
Proceeds from issuance of common stock, net of repurchases		655			(53	)		(79	)		523
Repurchase of common stock		(11,201	)		(3,401	)		—			(14,602	)
Principal payment on convertible debt		—			(200,000	)		—			(200,000	)
Net cash used in financing activities		(10,546	)		(203,454	)		(79	)		(214,079	)
Net increase (decrease) in cash and cash equivalents		45,684			(73,615	)		19,882			(8,049	)
Cash and cash equivalents at beginning of period		92,598			138,282			64,667			92,598
Cash and cash equivalents at end of period	$	138,282		$	64,667		$	84,549		$	84,549

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

GAAP TO NON-GAAP RECONCILIATION

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended									Nine Months Ended April 1, 2007
	October 1, 2006			December 31, 2006			April 1, 2007
Net income (loss) — GAAP Basis	$	(4,927	)	$	(1,860	)	$	(2,363	)	$	(9,151	)
Non-GAAP adjustments
Stock-based compensation expense	$	1,850		$	1,808		$	1,325		$	4,983
Stock option investigation expenses		—			2,771			2,846			5,617
Restructuring charge		1,534			(231	)		(157	)		1,146
Total non-GAAP adjustments	$	3,384		$	4,348		$	4,014		$	11,746
Net income (loss) — Non-GAAP Basis	$	(1,543	)	$	2,488		$	1,651		$	2,595
Non-GAAP adjustments
Cost of product revenue	$	197		$	201		$	189		$	587
Cost of service revenue		123			116			69			308
Sales and Marketing		667			635			470			1,772
Research and Development		558			564			395			1,517
General and Administrative		305			3,063			3,048			6,416
Restructuring charge		1,534			(231	)		(157	)		1,146
Total non-GAAP adjustments	$	3,384		$	4,348		$	4,014		$	11,746

Note: The non-GAAP adjustment for Cost of Revenues, Sales and Marketing, and Research and Development is related to share-based compensation expense. The non-GAAP adjustment for General and Administrative expenses includes both share-based compensation and costs associated with our stock option Special Investigation.

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

NON-GAAP PRESENTATION

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended								Nine Months Ended April 1, 2007
	October 1, 2006			December 31, 2006		April 1, 2007
Net revenues:
Product	$	67,982		$	71,074	$	69,578		$	208,634
Service		15,781			15,779		15,541			47,101
Total net revenues		83,763			86,853		85,119			255,735
Cost of revenues:
Product		31,602			31,767		28,943			92,312
Service		8,690			8,293		8,052			25,036
Total cost of revenues		40,292			40,060		36,995			117,348
Gross margin:
Product		36,380			39,307		40,635			116,322
Services		7,091			7,486		7,489			22,065
Total gross margin		43,471			46,793		48,124			138,387
Operating expenses:
Sales and marketing		24,776			25,194		24,416			74,386
Research and development		15,216			15,038		17,999			48,253
General and administrative		7,300			5,727		5,881			18,908
Restructuring charge		—			—		—			—
Total operating expenses		47,292			45,959		48,296			141,547
Operating income (loss)		(3,821	)		834		(172	)		(3,160	)
Other income, net		3,064			2,227		2,018			7,309
Income (loss) before income taxes		(757	)		3,061		1,846			4,149
Provision for income taxes		786			573		195			1,554
Net income (loss)	$	(1,543	)	$	2,488	$	1,651		$	2,595
Net income (loss) per share — basic	$	(0.01	)	$	0.02	$	0.01		$	0.02
Net income (loss) per share — diluted	$	(0.01	)	$	0.02	$	0.01		$	0.02
Shares used in per share calculation — basic		115,653			113,644		113,585			114,294
Shares used in per share calculation — diluted		115,653			113,644		113,585			114,294

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended									Year Ended July 2, 2006
	October 2, 2005		January 1, 2006		April 2, 2006		July 2, 2006
Net revenues:
Product	$	81,917	$	76,998	$	69,148	$	66,761		$	294,824
Service		16,005		15,789		16,302		15,681			63,777
Total net revenues		97,922		92,787		85,450		82,442			358,601
Cost of revenues:
Product		35,926		33,517		30,432		30,682			130,557
Service		8,708		8,488		8,806		8,166			34,168
Total cost of revenues		44,634		42,005		39,238		38,848			164,725
Gross margin:
Product		45,991		43,481		38,716		36,079			164,267
Services		7,297		7,301		7,496		7,515			29,609
Total gross margin		53,288		50,782		46,212		43,594			193,876
Operating expenses:
Sales and marketing		25,916		23,962		23,148		25,426			98,452
Research and development		16,263		15,670		14,456		15,577			61,966
General and administrative		7,175		6,052		6,505		5,766			25,498
Restructuring charge								3,268			3,268
Total operating expenses		49,354		45,684		44,109		50,037			189,184
Operating income (loss)		3,934		5,098		2,103		(6,443	)		4,692
Other income, net		929		1,427		1,383		1,876			5,615
Income (loss) before income taxes		4,863		6,525		3,486		(4,567	)		10,307
Provision for income taxes		510		875		645		(232	)		1,798
Net income (loss)	$	4,353	$	5,650	$	2,841	$	(4,335	)	$	8,509
Net income (loss) per share — basic	$	0.04	$	0.05	$	0.02	$	(0.04	)	$	0.07
Net income (loss) per share — diluted	$	0.03	$	0.05	$	0.02	$	(0.04	)	$	0.07
Shares used in per share calculation — basic		123,018		123,007		120,940		118,453			121,286
Shares used in per share calculation — diluted		124,754		124,806		122,818		118,453			123,049

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

GAAP TO NON-GAAP RECONCILIATION

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended									Year Ended July 2, 2006
	October 2, 2005		January 1, 2006		April 2, 2006		July 2, 2006
Net income (loss) — GAAP Basis	$	4,353	$	5,650	$	2,841	$	(4,335	)	$	8,509
Non-GAAP adjustments
Stock-based compensation expense	$	1,870	$	1,574	$	1,315	$	2,236		$	6,995
Restructuring charge								3,268			3,268
Total non-GAAP adjustments	$	1,870	$	1,574	$	1,315	$	5,504		$	10,263
Net income — Non-GAAP Basis	$	6,223	$	7,224	$	4,156	$	1,169		$	18,772
Non-GAAP adjustments
Cost of product revenue	$	170	$	196	$	147	$	205		$	718
Cost of service revenue	$	108	$	92	$	77	$	140			417
Sales and Marketing	$	782	$	594	$	500	$	888			2,764
Research and Development	$	525	$	442	$	363	$	663			1,993
General and Administrative	$	285	$	250	$	228	$	340			1,103
Restructuring charge							$	3,268			3,268
Total non-GAAP adjustments	$	1,870	$	1,574	$	1,315	$	5,504		$	10,263

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

NON-GAAP PRESENTATION

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended									Year Ended July 2, 2006
	October 2, 2005		January 1, 2006		April 2, 2006		July 2, 2006
Net revenues:
Product	$	81,917	$	76,998	$	69,148	$	66,761		$	294,824
Service		16,005		15,789		16,302		15,681			63,777
Total net revenues		97,922		92,787		85,450		82,442			358,601
Cost of revenues:
Product		35,756		33,321		30,285		30,477			129,839
Service		8,600		8,396		8,729		8,026			33,751
Total cost of revenues		44,356		41,717		39,014		38,503			163,590
Gross margin:
Product		46,161		43,677		38,863		36,284			164,985
Services		7,405		7,393		7,573		7,655			30,026
Total gross margin		53,566		51,070		46,436		43,939			195,011
Operating expenses:
Sales and marketing		25,134		23,368		22,648		24,538			95,688
Research and development		15,738		15,228		14,093		14,914			59,973
General and administrative		6,890		5,802		6,277		5,426			24,395
Restructuring charge		—		—		—		—			—
Total operating expenses		47,762		44,398		43,018		44,878			180,056
Operating income (loss)		5,804		6,672		3,418		(939	)		14,955
Other income, net		929		1,427		1,383		1,876			5,615
Income before income taxes		6,733		8,099		4,801		937			20,570
Provision for income taxes		510		875		645		(232	)		1,798
Net income	$	6,223	$	7,224	$	4,156	$	1,169		$	18,772
Net income per share — basic	$	0.05	$	0.06	$	0.03	$	0.01		$	0.15
Net income per share — diluted	$	0.05	$	0.06	$	0.03	$	0.01		$	0.15
Shares used in per share calculation — basic		123,018		123,007		120,940		118,453			121,286
Shares used in per share calculation — diluted		124,754		124,806		122,818		118,453			123,049