Latest Analyst Report Positions Madge.connect as Clear Token Ring Market Leader

Business Wire, August 2, 2001

Business Editors/Hi-Tech Writers

WEXHAM SPRINGS, U.K.--(BUSINESS WIRE)--Aug. 2, 2001

Cahners In-Stat Group Findings Confirm That Madge Is Responsible

for 43.5 Per Cent of Total Market Revenues - Ahead of IBM, Cisco and

Nortel

Leading industry analyst, Cahners In-Stat Group has confirmed Madge.connect(TM) - a subsidiary of Madge Networks N.V. (NASDAQ:MADGF) - as the clear market leader in Token Ring solutions.

This announcement follows newly-published research from Cahners into the Token Ring networking industry in the year 2000. According to this new research, Madge held off strong competition from other vendors in the key Token Ring sectors of adapters and switching - including IBM, Cisco and Nortel - to secure 43.5 per cent of Token Ring total market revenues, which combines adapter, switching and hub revenues.

The company also held an 83 per cent market share of Advanced Token Ring adapter volumes and 49 per cent of all Token Ring switching port volumes in 2000.

Madge.connect leads the market with its desktop switch, the Smart DeskStream, which enhances or replaces the functions of shared media hubs and MAUs. The Smart DeskStream opens up a wide range of integration and connectivity options for traditional Token Ring workgroups, in addition to improving performance, manageability, flexibility and security.

Cahners In-Stat Group is a member of Cahners Business Information, the largest business-to-business information provider in the world. These new figures also show that Madge.connect's switching (port volumes) market share leapt by 10 per cent quarter on quarter for the last two quarters of 2000, culminating in a 60 per cent market share in Q4 2000.

These results further confirm Madge.connect's commitment to delivering next-generation solutions that enable all Token Ring customers to benefit from switching, Gigabit networking and integration with Ethernet whilst maintaining the business benefits of their Token Ring workgroups.

"These latest results are further proof that Madge.connect is driving and leading the market," said David Elliott, CEO of Madge.connect. "Our strong market performance reinforces this industry-leading approach and demonstrates our total commitment to supporting the needs of all Token Ring customers. Despite very strong market competition in the switch and adapter sectors, we have attained this leadership position by showing our customers the practical steps they can take to develop their Token Ring infrastructures in a cost-effective and low-risk way."

About Cahners In-Stat Group

Cahners In-Stat Group, as part of Reed Elsevier Global Information Network, is a strategic piece of a $5 billion global information network.

The company has access to a worldwide electronic network, databases and personnel, all of which contribute to exceptional insight into individual geographic marketplaces such as Europe and the Pacific Rim, and technology areas such as electronics, cable and wireless.

As a member of Cahners Business Information, it is a core segment of the largest business-to-business information provider in the world.

Cahners In-Stat Group covers the full spectrum of digital communications research from technology to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.

In-Stat's digital communications research provides complete coverage of data, voice, and video communications, from wireless to wireline, computing to Internet, consumers to businesses.

About Madge.connect

Madge.connect is a global supplier of advanced networking product solutions to large enterprises. As the market leader in Token Ring, Madge.connect is pioneering next generation networking solutions, which enable the painless deployment of 100Mbps and Gigabit speed IP-based applications within existing corporate networks while protecting customers' investments in Token Ring.

About Madge Networks N.V.

Madge Networks N.V. (NASDAQ:MADGF), through its Madge.connect subsidiary, is a global supplier of advanced networking product solutions to large enterprises, and is the market leader in Token Ring. Madge Networks also has an associate company, Red-M(TM), a leading supplier of Bluetooth(TM) wireless networking product solutions.

The company's main business centres are located in Wexham Springs, United Kingdom; and Milpitas, California. Information about Madge's complete range of products and services can be accessed at www.madge.com.

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. difficulty of developing high technology products, changing industry standards, competition, the challenge of managing expenses to changing revenue and changed priorities and resource allocation resulting from these and other factors).

Forward-looking statements in this press release include statements that refer to Madge.connect delivering next-generation solutions that enable all Token Ring customers to benefit from switching, Gigabit networking and integration with Ethernet whilst maintaining the business benefits of their Token Ring workgroups and other statements, which are not completely historical.