3Com Teams With Copper Mountain Networks to Add Carrier-Class DSL Concentrators to CommWorks Architecture and Product Portfolio - Company Business and Marketing

Cambridge Telcom Report, March 27, 2000

3Com Coporation (Nasdaq: COMS), a leading vendor of systems in the emerging market for IP-based enhanced services networks, Monday announced it is expanding its CommWorks architecture to include digital subscriber line (DSL) access concentrator products for telecommunications service providers. Through an agreement with Copper Mountain Networks, Inc. (Nasdaq: CMTN), 3Com will deliver DSL concentrators for deployment in service providers' central offices, along with supporting network management elements. The two companies also will participate in joint marketing programs and cooperate on network management integration and international product certification.

The expansion of the 3Com/Copper Mountain relationship builds on the respective strengths of the two companies. Copper Mountain holds a leadership position in the North American business DSL equipment market, with particular strength among CLEC customers. 3Com has long-standing relationships with many of the world's leading service providers, including inter-exchange carriers, traditional incumbent local exchange carriers, Internet service providers, and cable operators. 3Com also has recognized expertise in cabinet integration solutions.

Together, 3Com and Copper Mountain will deliver a complete portfolio of end-to-end solutions for the DSL market - from the service provider's central office to the DSL subscriber's desktop. Today's announcement builds on an existing relationship between 3Com and Copper Mountain for the delivery of end-to-end DSL solutions. On February 22, 2000, the two companies announced that 3Com would resell Copper Mountain's complete line of CopperRocket customer premise equipment (CPE), including DSL modems, integrated access devices and inverse multiplexing devices.

The market for DSL is rapidly expanding and sales of DSL concentrators have grown dramatically over the past year as incumbent local exchange carriers (ILECs), competitive local exchange carriers (CLECs) and other service providers rush to meet the demand for DSL service. According to the Dell'Oro Group, DSL equipment sales (access concentrators and client modems) exceeded $535 million during the fourth quarter of 1999. (Source: Dell'Oro Group, February 22, 2000). Cahners In-Stat Group estimates that the number of DSL devices sold worldwide will rise from about 2 million in 1999 to more than 18 million in 2003. (Source: Cahners In-Stat Group, January 2000)

"Our mutual expertise in IP backbone connections makes this a natural next-step in our relationship with Copper Mountain," said Irfan Ali, senior vice president and general manager, 3Com Carrier Systems. "The addition of the DSL component to the CommWorks portfolio enhances 3Com's ability to deliver to customers a complete architecture for the deployment of multiple services in a single, unified networking environment."

"We enjoyed a strong relationship with 3Com in 1999, so strong that we've now expanded it twice in 2000," said Rick Gilbert, president and CEO of Copper Mountain. "Bolstering our sales channels to better serve the market is an important element in Copper Mountain's strategy. 3Com's sales channels, both direct to carriers and indirect for CPE, are outstanding, enabling us to extend our customer reach. The alliance also gives Copper Mountain an entree into international markets. Given the strategic importance of the DSL market to 3Com and Copper Mountain, this is a logical and exciting next step in our relationship." 3Com Expands Total Control Product Line with Carrier-Class DSL Concentrators

Under terms of the agreement announced Monday, 3Com will distribute under the Total Control 500 DSL Access Multiplexer brand name, two members of Copper Mountain's product family:

- The CopperEdge 200 concentrator has the capacity for 192 Symmetric DSL (SDSL), ISDN DSL (IDSL), or G.lite (Asymmetric DSL) ports per chassis. It is designed for use in central offices and large MTUs.

The unit delivers value-added data networking services at nine selectable speeds from 64 kbps to 1.5 Mbps - The CopperEdge 150 concentrator, which supports up to 48 SDSL and G.lite ports per chassis, lets carriers and service providers capitalize on the existing copper infrastructure of medium-sized MTUs to offer tenants communications services at speeds ranging from 128 kbps to 1.5 Mbps.

The CommWorks Architecture: Open, Versatile, Scalable The CommWorks brand encompasses all areas of 3Com's carrier portfolio, reflecting the multiservice nature of the company's offerings in enhanced data services, IP telephony, wireless data access, cable access, and DSL. The CommWorks architecture gives service providers a cohesive, methodical migration path as they shift from circuit-based networks to feature-rich and efficient packet-based IP networks. The CommWorks architecture includes a full line of products and services to support complete IP-based infrastructures.

The first two tiers of the three-tier CommWorks architecture address universal connectivity requirements, including signaling protocol mediation. The third tier enables flexibility in service customization by offering interfaces for application and service development: