Brocade Buys SilverBack

SAN JOSE, Calif. -- Brocade Communications Systems, Inc. (Nasdaq: BRCD) today announced that is has acquired privately held Silverback Systems, Inc., a provider of network acceleration technologies headquartered in Campbell, California. Silverback develops network processors that help to accelerate the speed and performance of storage traffic in networked storage environments. This acquisition enables Brocade to further deliver on its vision of extending the value of shared storage for enterprise customers.

We are committed to providing customers a broad range and choice of high-performance networked storage solutions,” said Dan Crain, Chief Technology Officer at Brocade. “Silverback’s technology and expertise in iSCSI environments will help us to deliver a new set of cost-effective products that broaden the Brocade product portfolio and provide even more options and capabilities to our customers.”

The cash purchase price is not material to Brocade, however, the Company expects to record goodwill, in-process research and development, and other intangible assets associated with the transaction in the first quarter of fiscal 2007.

“Through this strategic acquisition, Brocade is obtaining excellent engineering and technology expertise in an area where the company will continue to grow and expand its business,” said Arun Taneja, Founder & Consulting Analyst, Taneja Group. “As data centers expand to include emerging technologies such as 10GbE and high performance IP connectivity, Brocade is demonstrating its commitment to continue to provide customers with a broad range and choice of high-performance networked storage solutions.”

The acquisition is the third for Brocade in the past 10 months. In March of 2006, Brocade acquired NuView, Inc., a maker of file management software headquartered in Houston, Texas. In August 2006, Brocade announced a definitive agreement to acquire McDATA Corporation (Nasdaq: MCDTA/MCDT), a maker of Storage Area Network (SAN) solutions. The McDATA acquisition remains subject to approval of Brocade and McDATA stockholders, regulatory approval, and other closing conditions.Brocade Communications Systems Inc.