Enterasys Networks Discontinues Rule 10b5-1 Program
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Portsmouth, NH — Feb 27, 2002
Enterasys Networks Inc. (NYSE: ETS), a leader in enterprise networking solutions, today announced the discontinuation of its existing program for senior executives of the company to diversify their investment portfolio by selling a portion of their shares on a periodic basis pursuant to Rule 10b5-1 of the Securities and Exchange Commission. This program, which was first instituted over a year ago and covered the Company's senior executives, was designed to eliminate any potential issues resulting from the timing of sales of stock by key executives.
Management simply doesn't believe that the current share price reflects an appropriate valuation of Enterasys shares, said Henry Fiallo, chairman and CEO of Enterasys Networks. The elimination of selling under the program helps maintain alignment of management and shareholder interests, preserves the incentive value of equity participation by senior management, and drives increased shareholder value. It also reflects management's continued confidence in the success and prospects of the Company.
In August of 2000, the Securities and Exchange Commission adopted Rule 10b5-1. That rule recognizes the creation of formal programs under which executives and others may sell the securities of publicly traded companies on a regular basis in a manner that insulates those transactions from the ability to benefit from inside information. This rule is intended to assure that trading will not be done on the basis of material non-public information and allows executives to diversify their holdings without flexibility or control over the timing or price of specific transactions.
Enterasys Networks (NYSE: ETS) is a leading worldwide provider of communications infrastructures for enterprise-class customers. Enterasys' networking hardware and software offerings deliver the innovative security, availability and mobility solutions required by Global 2000 organizations coupled with the industry's strongest service and support. For more information, visit enterasys.com
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