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Ken Koch, President and CEO, Inrange: Page 3 of 11

    • Koch: We're always looking for smart acquisitions. My takeaway on the Rhapsody acquisition is that it certainly reflects that we're undervalued, when you look at our market cap [which is currently around $210 million] and the fact that Brocade paid $175 million for a prerevenue startup. We've got $50 million to $60 million of FC/9000 revenue real revenue – along with all the other significant portions of our business that contribute real significant income. So something's a little strange there.

      Also, I think it validates our thought that the SilkWorm 12000 has not delivered what Brocade has promised. To be a player in this business, you need a director platform. They've paid a significant price to get a platform that isn't going to be in the market for another year.

      Byte and Switch: You think Brocade bought Rhapsody to shore up its director strategy?

      Koch: Yeah, absolutely.

      Byte and Switch: But Brocade has talked about providing virtualization features in the network fabric with the Rhapsody technology. Do you have any plans on that front?