3Com Delivers On Its Strategy to Extend Its Lead in Small and Medium Enterprise Networking; New OfficeConnect and SuperStack Brand Networking Solutions Announced

Business Wire, Sept 22, 1998

SANTA CLARA, Calif.--(BUSINESS WIRE)--Sept. 21, 1998--3Com Corporation (Nasdaq:COMS) today announced it is delivering on its strategy to extend its leadership in the small and medium enterprise (SME) networking market.

Centered on five end-to-end solutions tailored to the specific business needs of small businesses and medium enterprises, 3Com delivers solutions satisfying fundamental requirements for reliable, easy-to-use and cost-effective networks that will help manage the transition to converged voice and data networks. As part of today's announcement, 3Com also announced nine new products supporting its SME strategy.

"3Com believes the SME networking market is a large opportunity and we are determined to make it easier for our more than 40,000 SME resellers to solve their SME customers' business problems with our new five solutions -- from simple PC connectivity to deploying future converged video, voice and data networks," said Edgar Masri, senior vice president and general manager, 3Com Small and Medium Enterprise Business Unit.

"Datamonitor believes that 3Com has established itself as a leading player within the SME networking space," said Dean Bubley, area practice director, technology, Datamonitor, a market research firm based in the U.K. "Its broad product range enables it to address the whole spectrum of SME sub-types: from 'high-end' users in smaller financial and manufacturing companies requiring 100Mbit/s or Gigabit connectivity; right down to sole traders and start-up firms just using modems or simple LANs. In addition, 3Com's manufacturing scale economies and extensive reseller network are important contributory factors to its success in the SME market." The Small and Medium Enterprise Market

3Com's focus on the SME market spans organizations ranging from businesses with fewer than 50 users to those with 500. Based on several market research firm reports, 3Com sizes the SME market at $8 billion with 25% growth. SME organizations have many different types of networking needs, however, 3Com's customer experience indicates there are three keys necessary to open the door to success: ease-of-use, reliability and cost effectiveness. Experience has born out, especially as indicated by the company's leading Ethernet networking marketshare and 25% of the SME market, 3Com consistently brings products to market that epitomizes these three key traits.

"Yankee Group research shows that of the 10.3 million Small and Medium Business (SMB) population 56% have a LAN, 66% have Internet access, 36% have a Web site and 61% (of multi-site companies) have a WAN. The market growth is anticipated to be huge as companies with existing Internet and networking technologies upgrade their communications equipment and those companies not employing these technologies begin to network computers and journey onto the Internet," said Michael Lauricella, SMB associate analyst with The Yankee Group. "These numbers spell strong growth in a market in which 3Com is extremely well positioned. 3Com will continue to reap handsome rewards from their early recognition of and attention to the SMB market." 3Com SME Strategy: Leading in Network Reliability, Ease-of-use and Cost-effectiveness with Core Corporate Capabilities and Five Networking Solutions

3Com's SME strategy consists of: -0-

--   A streamlined R&D program that's as focused on time-to-market
  issues as it is on innovation;
--   An efficient manufacturing operation that successfully leverages
  3Com's volume of product (three times that of any other
  networking vendor) and delivers the best quality and lowest
  priced product to our customers;
--   Strategic partnerships -- such as the recent OfficeConnect
  announcement with Hewlett Packard (see 3Com press release dated
  Aug. 17, 1998) and existing OEM relationships with
  Hewlett-Packard, Dell and Compaq for 3Com EtherLink network
  interface cards;
--   Channel programs that extend 3Com's reach to the customers
  through value-added resellers, consultants and service providers
  who directly touch the customers, and;
--   Five specific solutions that can be tailored to the individual
  needs of growing small businesses and medium enterprises:

1.   PC and Office Connectivity -- Essential to growing businesses
  regardless of industry, 3Com PC and Office Connectivity solution
  offers immediate increases in productivity, effectiveness and
  business performance. 3Com's leading combination of network
  interface cards, hubs, switches and modems deliver unmatched,
  end-to-end solutions for office networking. 3Com brands for PC &
  Office Connectivity include OfficeConnect, U.S. Robotics and
  Megahertz products for remote access, and OfficeConnect,
  Megahertz and EtherLink products for LAN connectivity.

2.   Accessing the Internet -- The universal acceptance of the
  Web-based technologies has driven the need for instant and
  increased network access from any location. 3Com's Universal
  Connect technology, combined with a portfolio of shared Internet
  access products, create high-speed, reliable solutions for SME
  environments. Powered by the simple-to-install-and-use designs,
  these products deliver low cost of ownership scenarios for
  conducting business over the Internet. 3Com brands for this
  segment include U.S. Robotics, OfficeConnect and Megahertz
  products for remote access and WAN, and OfficeConnect, EtherLink
  and Megahertz products for LAN connectivity.

3.   Building Your Intranet -- Corporate requirements for remote
  access continue to accelerate the acceptance of the Internet as a
  viable network infrastructure for SMEs and these corporate
  Intranets enable a broad range of mobile computing applications
  and the creation of virtual communities of employees. 3Com
  Intranet solutions allow customers to implement company Intranets
  now and prepare for Virtual Private Networks (VPNs) as the next
  step to improved operational effectiveness, heightened security
  and greater manageability of corporate resources. 3Com products
  feature resilient network links and redundant power supplies for
  reliable, standards-based networking. 3Com Intranet brands
  include OfficeConnect, SuperStack, Megahertz and U.S. Robotics
  products for remote access and WAN applications, and SuperStack,
  SuperStack Baseline, EtherLink and EtherLink server products for
  LAN connectivity.

4.   Extending to an Extranet -- Medium enterprises are realizing
  substantial cost savings and efficiencies in business-to-business
  transactions with suppliers and vendors over a secure Extranet.
  3Com brands include Megahertz, U.S. Robotics, OfficeConnect,
  SuperStack and NETBuilder products for remote access and WAN
  connectivity, and SuperStack, EtherLink and Megahertz products
  for LAN connectivity. 3Com Extranet solutions are integrated,
  standards-based systems that allow customers to conduct
  business-to-business communications that increase productivity
  and reduce capital costs. Through highly-secure Web-based
  technology, 3Com Extranet solutions make VPN set-up and
  administration simple while maintaining management and security
  controls necessary when operating an Extranet.

5.   Supporting Voice, Video and Data -- This SME application set will
  bring on the incredible efficiencies and manageability of a
  single converged voice, video and data network. 3Com's converged
  networking strategy includes the physical integration of the
  voice and data network into one unified pipe for transmission of
  voice and data and pervasive network applications that drive true
  convergence.