Brocade Reports Q4: Page 2 of 4

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 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.