MCDATA ANNOUNCES PRIVATE OFFERING OF CONVERTIBLE NOTES.

(Full text of a statement. Contact details below.)

BROOMFIELD, Colo., Feb. 3 /PRNewswire-FirstCall-AsiaNet/ -- McDATA(R) Corporation (Nasdaq: MCDTA, MCDT) today announced that it intends to sell approximately $150 million principal amount of Convertible Subordinated Notes due 2010 through a private offering pursuant to Rule 144A of the Securities Act of 1933. The sale is subject to market and other conditions.

McDATA stated that it expects the terms of the offering to include an option for up to an additional $22.5 million principal amount of notes, depending on the ultimate size of the offering.

The interest rate, conversion rate and offering price are to be determined by negotiations between McDATA and the initial purchasers of the Notes. The offering is expected to begin on February 3, 2003. Under the terms of the proposed offering, the Notes will be convertible into shares of McDATA's Class A common stock. The Notes will not be redeemable prior to maturity.

McDATA intends to use the net proceeds from the sale of the Notes for general corporate purposes, including working capital, capital expenditures and potential acquisitions or investments in complementary businesses or technologies, although McDATA is not currently in discussions with any third parties regarding potential acquisitions.

In addition, McDATA intends to use a portion of the net proceeds to enter into share option transactions with certain of the initial purchasers and/or certain of their affiliates to mitigate against potential dilution from conversion of the Notes. In connection with the share option transactions, such persons will take positions in McDATA's Class A and/or Class B common stock in secondary market transactions and/or enter into various derivative transactions both in anticipation of and after the pricing of the Notes.

The securities to be offered have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.