Brocade Announces Employee Stock Option Exchange Program

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FOR IMMEDIATE RELEASE


BROCADE CONTACTS


MEDIA RELATIONS INVESTOR RELATIONS Fenella Tigner Shirley Stacy Tel: 408.392.6843 Tel: 408.392.5752 ftigner@brocade.com sstacy@brocade.com


BROCADE ANNOUNCES EMPLOYEE STOCK OPTION EXCHANGE PROGRAM


SAN JOSE, CALIF. -- DECEMBER 9, 2002 -- Brocade Communications Systems, Inc. (Brocade(R)) (Nasdaq: BRCD), the world's leading provider of infrastructure solutions for Storage Area Networks (SANs), announced today that its Board of Directors has approved a voluntary stock option exchange program for Brocade employees.


Under the program, Brocade employees will be offered the opportunity to exchange outstanding stock options with exercise prices equal to or greater than $12.00 per share for new stock options, which will be granted at an exchange ratio determined by the grant date of the original stock option. Employees will receive new stock options in exchange for outstanding stock options at an exchange ratio of either 1 for 1, 1 for 2; or 1 for 3, depending on the grant date of the original stock option. The new stock options will be granted on the first business day that is six months and one day after the cancellation of the exchanged options. Brocade expects the new option grant date to be July 10, 2003.


The exercise price per share of the new options will be the fair market value of Brocade common stock at the close of regu ...