Brocade, Net One Systems Extend Strategic Business Alliance

Companies to Target High-Growth Technology Opportunities in the Japanese IT Market

SAN JOSE, CA, August 17, 2009 -- Brocade (NASDAQ:BRCD) and Net One Systems, the largest independent network integrator in Japan, today announced that the companies have agreed to extend their strategic business alliance to help enable the two companies to better address high-growth, emerging opportunities in the data center and service provider networking segments in Japan, particularly in the areas of virtualization and cloud computing.

Under the extended agreement Net One will be able to resell a comprehensive portfolio of data center and IP networking solutions from Brocade that will be the basis of Net One's strategy to evolve from a networking systems provider to a full service IT integrator. For Brocade, the extended agreement with Net One will serve as an important platform for its diversified business and growth strategies in Japan, whose IT market is estimated to be nearly $110 billion (USD) per year for hardware, software and services, according to market research firm IDC.

"Net One Systems brings unparalleled knowledge and success in doing business in the demanding and complex Japanese IT market and currently is responsible for driving significant revenue for our biggest competitor in Japan," said Mike Klayko, CEO of Brocade. "This alliance therefore represents an important win for Brocade and our Japanese operations. In terms of industry benefits, this extended alliance combines Net One's unique knowledge of the Japanese market with best-in-class networking solutions from Brocade that will provide our mutual customers an effective way to evolve their network infrastructures while protecting their existing IT investments."

"The data center and service provider networking markets in Japan present tremendous growth potential for us and our partners," said Takayuki Yoshino, President and CEO of Net One Systems. "With this expanded alliance, Brocade and Net One Systems will work closely to deliver more value for our customers through world-class technology, support and services options."

Senior executives from both companies will host a public event in Tokyo on Sept. 1, 2009 to outline additional details of this strategic relationship between Brocade and Net One.

Source: Brocade Communications Systems, Inc.