Item 2.05 Costs Associated with Exit or Disposal Activities.

On March 23, 2009, Extreme Networks, Inc. (the "Company") approved a plan to reduce the number of employee positions at the Company by approximately 5%. The Company expects to substantially complete this reduction-in-force by the end of fourth quarter of fiscal year 2009 which ends June 28, 2009. The Company is taking these actions in order to reduce operating costs and realign its organization in the current competitive operating environment. The Company anticipates incurring restructuring charges of approximately $1.8 million related to this action, primarily for non-recurring employee-related termination benefits, including severance payments and continuation of medical insurance benefits.

In addition, earlier in the quarter, the Company reduced the number of employee positions at the Company by approximately 1% and exited a facility as part of the Company's strategic plan. The Company anticipates incurring restructuring charges of approximately $0.5 million related to this action, primarily for non-recurring employee-related termination benefits, including severance payments and continuation of medical insurance benefits, excess lease facility and asset impairment.

As a result of these plans, the Company expects to reduce the number of employee positions by approximately 6% and to record total restructuring charges of $2.3 million in its third quarter of fiscal year 2009 which ends March 29, 2009. Substantially all of these charges will result in cash expenditures.

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