This document outlines Brocade's objectives regarding compliance with the applicable requirements of two environmental laws adopted recently by the European Union (EU):

• The Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment
• The Waste from Electrical and Electronic Equipment Directive (WEEE Directive)

The WEEE Directive requires that by August 13, 2005, "producers" (i.e. companies that sell electrical and electronic equipment bearing their trade name, and companies that act as importers or exporters of those products), arrange and pay for the collection, treatment, recycling, recovery, and disposal of such equipment. Brocade's objective is to fulfill its obligations under the WEEE Directive for those Brocade products for which Brocade is deemed to be the "producer."

The RoHS Directive requires that starting July 1, 2006, companies ensure that their electrical and electronic equipment sold in the EU does not contain lead (Pb), mercury (Hg), cadmium (Cd), hexavalent chromium (Cr+6), polybrominated biphenyls (PBB) or polybrominated diphenyl Ethers (PBDE) if placed on the market after this date. The RoHS Directive, however, excludes from the substance ban a series of "applications," including the use of lead in solders for servers, storage and storage array systems. Brocade's objective is to fulfill its obligations under the RoHS Directive by eliminating all banned substances from its products in accordance with the deadlines and exemptions in the RoHS Directive.