Cabletron to acquire frame relay innovator Netlink; Continues wide area network push with acquisition of leading frame relay provider

Business Wire, Sept 27, 1996

ROCHESTER, N.H.--(BUSINESS WIRE)--Sept. 27, 1996-- Cabletron Systems (NYSE:CS), the leading provider of high-performance switching solutions, today announced it has entered into a merger agreement to acquire privately-held Netlink, an award-winning-(a) supplier of frame relay access solutions for multi-protocol, mission-critical networks.

Under terms of the merger agreement, 2,258,975 shares of Cabletron common stock will be exchanged for all outstanding shares of Netlink on a fully diluted basis. The transaction will be accounted for as a pooling of interests and a tax-free reorganization. The merger is expected to be completed by year end and is subject to various closing conditions, including approval by the Netlink shareholders. Cabletron intends to operate Framingham-based Netlink as a standalone business unit. Netlink employs approximately 80 people.

Cabletron is acquiring Netlink to offer customers a wider choice of remote access technologies for linking branch offices, data centers and telco central offices. The acquisition aggressively positions Cabletron in the frame relay market, which is one of the fastest growing remote access services for linking multi-protocol LANs over a Wide Area Network. The worldwide frame relay market is expected to grow from $3.3 billion in 1996 to $11.2 billion in 1999, according to Vertical Systems, a Dedham, Mass.-based research firm.

"The Netlink acquisition complements Cabletron's existing strengths in ATM and LAN switching, enabling us to extend our SecureFast( switched-based virtual networking technology to geographically dispersed branch networks," said Craig Benson, Cabletron's chairman and COO. "Through Netlink, as well as our recent acquisition of Network Express, we have significantly expanded our remote access product portfolio, addressing customers' existing and future WAN requirements."

According to Nina Saberi, Netlink's president and CEO, "The merger will allow Netlink to leverage Cabletron's strong worldwide presence, engineering and sales distribution resources to fully market Netlink's innovative frame relay technology. The combined product families of both companies will provide customers with innovative solutions for building high-performance switched virtual networks that support frame relay connectivity."

Unlike traditional router-based architectures from other vendors, Netlink provides high-performance, switch-based frame relay solutions at a significant price/performance advantage over using a traditional router. This implementation enables the transport of both client- server and SNA/mainframe data, without compromising the quality and continuity of connections. The acquisition also allows Cabletron to meet widespread customer need for integrating SNA and LAN traffic via frame relay.

About Netlink, Inc.

Netlink, Inc. has developed a comprehensive solution for transporting information over frame relay. With Netlink's products, customers can reliably reduce networking costs by migrating their mission critical applications to frame relay and consolidating multiple traffic types over a common network infrastructure.

About Cabletron Systems

Cabletron Systems is the recognized leader in providing high-performance internetworking solutions, including LAN and ATM switches and advanced network and systems management software. Under its Synthesis product framework, Cabletron markets products throughout the world for linking and managing enterprise-wide networks.

With corporate headquarters in Rochester, NH, Cabletron employs over 6,000 people worldwide. Cabletron's common stock is traded over the New York Stock Exchange under the symbol CS. Over the last four quarters, the company has reported record revenue of $1.2 billion. -0-

-(a) DataComm Magazine Tester's Choice Award for Netlink Omnilinx 4000, September 1995.

Cabletron's World Wide Web site can be reached on the Internet at http//www.cabletron.com. Netlink's World Wide Web site can be reached at http://www.netlink.com.

Cabletron and SecureFast are trademarks or registered trademarks of Cabletron Systems. All other products or services found in this document are identified by the trademarks or service marks of their respective companies or organizations.

CONTACT: Darren Orzechowski

Public Relations

Cabletron Systems

(603) 337-1282

darreno@ctron.com

or

Ed Cortes

Investor Relations

Cabletron Systems

(603) 337-4225

cortes@ctron.com

or

Roger Walton

Netlink, Inc.

(508) 370-3628

raw@netlink.com