Red-M Partners With Strio to Launch Bluetooth Technology Into the Retail Sector

Business Editors

WEXHAM SPRINGS, United Kingdom--(BUSINESS WIRE)--Sept. 25, 2000

Red-M(TM), a pioneering developer of Bluetooth Internet access server technology and subsidiary of Madge Networks N.V. (NASDAQ NM: MADGF), today announces that it will partner with US-based Strio, to bring the benefits of Bluetooth, the emergent short-range wireless technology, to the retail marketplace.

Strio is a Wireless Network Provider and developer of innovative applications that enable retailers and mall property owners to increase foot traffic, streamline operations and increase value and convenience to their consumers. Strio will use Red-M's Bluetooth access server technology to build wireless networks that enable rapid and reliable transmission of information to and from computers and handheld devices.

"Red-M's Bluetooth product offering will enable Strio to build world-class wireless networks for brick and mortar environments and host a variety of customizable applications," says Duncan Freeman, Co-Founder and President of Strio. "Strio's focus on the retail industry, combined with Red-M's innovative technology, will empower the next generation of wireless communications."

Simon Gawne, VP of Marketing and Business Development at Red-M, says, "We believe that the advanced capabilities of Bluetooth will benefit the retail market considerably. Working with Strio is a very compelling opportunity for us, due to their experience with emerging technology and focus on specific vertical markets. Red-M has already established a very strong position in the Bluetooth market and we expect this partnership to further consolidate that position."

Red-M's Bluetooth access server products will provide mobile access to the Internet, Intranet, and voice and data services from a wide range of devices including PCs, mobile phones, personal digital assistants (PDAs), Wireless Application Protocol (WAP) smart phones and other emerging information appliances. The first products from Red-M are expected to be available by the end of this year.

Ends

About Red-M

Founded in 2000, Red-M is a subsidiary of Madge Networks N.V. The company is a pioneer of mobile commerce solutions that allow the wireless integration of data, voice and video communications in the work environment, delivering reliable and secure access to Internet, Intranet and business critical applications from a wide range of mobile devices. Information on Red-M can be found on the World Wide Web at www.red-m.com.

About Madge Networks N.V.

Madge Networks N.V. (NASDAQ NM: MADGF) is a global provider of advanced Internet-centric network services and products, and mission-critical enterprise solutions. The company operates through three primary subsidiaries: Madge.web, a global provider of rich content applications and managed network services; Madge.connect, a global supplier of product solutions for mission-critical enterprise networks; and Red-M, a developer of wireless Internet server products that provide Internet and Intranet access from a wide range of mobile devices in the workplace. The company's main business centers are located in Wexham Springs, United Kingdom; New York City and Dallas, Texas. Information about Madge's complete range of products and services can be accessed on the World Wide Web at www.madge.com.

About Strio

Strio is a Wireless Network Provider that designs, builds and manages intelligent, wireless networks in brick and mortar environments. The company provides businesses with the innovative applications and customizable tools necessary to streamline operations, increase foot traffic and boost revenues. For additional information, please visit www.strio.net.

About Bluetooth

The Bluetooth(TM) wireless technology is set to revolutionize the personal connectivity market by providing freedom from wired connections. It is a specification for a small form-factor, low-cost radio solution providing links between mobile computers, mobile phones and other portable and handheld devices, and connectivity to the Internet. The Bluetooth Special Interest Group (SIG), comprised of leaders in the telecommunications, computing, and network industries, is driving development of the technology and bringing it to market. The Bluetooth SIG includes promoter companies 3Com, Ericsson, IBM, Intel, Lucent, Microsoft, Motorola, Nokia and Toshiba, and more than 1800 adopter companies.

Private Securities Litigation Reform Act Statement

Investors should take note that certain statements in this press release are forward-looking and may not give full weight to all of the potential risks (e.g., ability to deliver new marketable solutions quickly to bring products to market before our competitors, changing technologies, management of change and changed resource allocation resulting from these and other factors). Forward-looking statements in this press release include Red-M and Strio partnering to bring the benefits of Bluetooth to the retail market, Strio using Red-M's Bluetooth access server technology to build wireless networks enabling rapid and reliable transmission of information to and from computers and handheld devices, the Red-M Bluetooth product enabling Strio to build networks for brick and mortar environments and to host a variety of customizable applications, Red-M's consolidation of its position in the Bluetooth market, Red-M's Bluetooth access server products providing mobile access to the Internet, Intranet, and voice and data services from a wide range of devices, Red-M products being available by the end of the year and other statements which are not completely historical. These statements may differ materially from actual future actions, events or results. For more information on risks, please refer to Madge's recent SEC filings.

Red-M, the Red-M logo, Madge, Madge.connect, and Madge.web are trademarks, and in some jurisdictions may be registered trademarks of Madge Networks or its affiliated companies. Other trademarks appearing in this release are the property of their respective owners.