Xircom Marks a Decade of Mobile Communications; Company's 10 Year History Impacts Evolution of Notebook Communications

Business Wire, Oct 13, 1998

THOUSAND OAKS, Calif.--(BUSINESS WIRE)--Oct. 13, 1998--Xircom, Inc. (Nasdaq:XIRC), the world leader in connectivity solutions for mobile computing professionals, celebrates its 10th year of developing and marketing communications products for the growing number of mobile users worldwide.

Xircom created the mobile networking market in 1988 with its original Pocket Ethernet Adapter, a device that connects notebooks to networks through the use of the parallel port interface. Today Xircom continues to lead that market with its innovative PC Card products. International Data Corporation (IDC) predicts that this market will grow to nearly 25 million PC Cards shipped worldwide in 2001, representing a compound annual growth rate of almost 60% since early PC Card shipments in 1993. In 1998, ten years after creating the market, Xircom continues to transform mobile communications with its latest RealPort Integrated PC Cards, which remove the hassle of external cables.

1988-1998: A Decade of Innovation in Mobile Communications

Over the past decade, Xircom has expanded its innovative solutions through integration of standards-based networking and hardware technologies that have impacted the evolution of notebook communications. These efforts resulted in the following industry "firsts":

-- 1988: Created mobile networking category

with Pocket Ethernet Adapter

-- 1992: First PC Card Ethernet LAN adapter

-- 1994: First PC Card combining Ethernet

and Modem functionality in a single

device

-- 1996: First 10/100 Ethernet PC Card

-- 1996: First 32-bit CardBus PC Card

-- 1997: First PC Card combining 10/100

Ethernet and 56K modem in a single

device

-- 1998: First PC Card combining 32-bit

CardBus 10/100 Ethernet and 56K modem

-- 1998: Created Integrated PC Card form

factor with RealPort family of products

Leadership Through Partnership

Further reaffirming the importance of the mobile market and Xircom's leadership role within the segment, the company has developed partnerships and technology alliances with key industry players including Intel, Lucent and the top notebook manufacturers.

"Xircom's decade of focus on the mobile user gives them a unique understanding of their needs," said Mark Christensen, vice president and general manager, Intel Network Products Division. "Our technology alliance with Xircom ensures that the next generation of jointly developed products will continue the tradition of creating innovative, reliable solutions that provide best-in-class capabilities to meet the communications demands of mobile PC users."

1999 and Beyond: Computing Goes Mobile, Communications are Key

"IDC believes that as notebook PCs continue to permeate the corporate environment and mobile PCs move into new market segments such as small business, SOHO, and the home, users will increasingly need communications equipment," said Randy Giusto, IDC Director, Mobile Technology Research.

According to IDC, worldwide portable PC shipments will total over 25 million by 2002, while the Handheld PC market is expected to grow nearly 45 percent over the next five years. Meta Group estimates that by the year 2000, half of all business PC shipments will be notebooks, up from 35 percent today.

"Xircom was founded a decade ago on a simple vision: All PCs mobile and Xircom connecting all mobile PCs. Ten years later we are closing in on that vision as evidenced by what's going on in the market today," said Dirk Gates, Xircom chairman, president and CEO. "As we begin our second decade, we are well positioned to leverage the extraordinary long-term opportunity for growth that the mobile communications market offers."

Xircom - 10 Years of Focus, Innovation and Leadership in Mobile Communications

Xircom, Inc., founded in 1988, is the world's leading manufacturer of mobile communications solutions, including Integrated PC Card and PC Card products, which connect portable computer users to corporate networks, the Internet and other online resources. Xircom products are sold and supported in over 100 countries through a global network of distributors, integrators and resellers. Xircom is headquartered in Thousand Oaks, Calif., and has regional headquarter offices in Antwerp, Belgium and Singapore. More information about Xircom and Xircom products may be found at www.xircom.com. US Sales: (800) 438-4526 Telephone: (805) 376-9300 Fax: (805) 376-9311

Worldwide press contacts:

Xircom U.S.: Mike Hulme Bethany Burnam Copithorne & Bellows Xircom, Inc. mike.hulme@cbpr.com bethany_burnam@xircom.com Tel. 415-375-2267 Tel. 805-376-6813

Xircom Europe: Catherine Depoorter catherine_depoorter@xircom.com Tel. 32/3 450 0913

Xircom Asia Pacific: Yinyin Ho yinyin_ho@xircom.com Tel. 65-323-1511

This news release contains certain forward-looking statements based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially. These risks and uncertainties include actual growth rates of market segments and product categories, and the timing and success of new product introductions.