Madge Announces New Company Structure; Company Reorganization to Focus On Two Principal Lines of Business - Internet/Web/Online Service Information

Edge: Work-Group Computing Report, August 30, 1999

Madge Networks N.V., a global network solutions provider, Wednesday announced a new company structure to accelerate its strategy to deliver leading edge managed network and hosting services as well as product solutions to its worldwide customer base.

With immediate effect, the company's existing two divisions, Managed Network Services and Enterprise Network Products, will become known as Madge.web and Madge.connect respectively. Over the next few months, the divisions will be set up with separate company status as subsidiaries of Madge Networks N.V., to allow them to operate with greater financial independence and measurability.

Under the new structure, Robert Madge, chairman of Madge Networks N.V., will become CEO of Madge.web, the managed network and hosting services operation, and Mike Wilson will be CEO of Madge.connect, the network product solutions operation.

Robert Madge, chairman of Madge Networks N.V. and CEO of Madge.web, said: "We have taken this step because our managed networking and hosting services business has now reached the scale and status where it will flourish best as an independent operation, and I want to devote my primary attention to developing this business as a global leader in its field. We also intend to gain greater visibility for Madge.web, and provide greater transparency to investors who have an interest in this business. The Madge.connect business will also gain greater independence of operation, and will be single-mindedly pursuing its objectives of unparalleled customer focus and support along with an aggressive strategy of new product development.

"The two operations are intensifying their efforts to achieve synergies in addressing Madge's overall worldwide customer base, and there will continue to be significant cooperation in customer-facing activities. Both operations will build on Madge's brand and reputation for putting the customer first."

As part of the restructuring, John Wheeler, senior vice president, who headed the Managed Network Services (MNS) division (now Madge.web), has stepped aside having successfully achieved the objective of building MNS from launch.

"John was a core member of the team who was specifically brought on board to take the MNS business from concept phase into reality," commented Robert Madge. "The company is now taking the business into its logical second phase of growth - that of developing key strategic partnerships, increasing the investment in the infrastructure and expanding the customer base. We thank John for his considerable contribution over the last twelve months."

Madge.connect (previously known as the Enterprise Network Products division) combines Madge's core strengths in mission critical Token Ring networking, used in over 20 million corporate desktops worldwide, with its leading edge IP-based video networking solutions. The company's strategy is to lead in the US$1.4bn Token Ring market through the development of next generation Token Ring technology, including gigabit Token Ring, super high density Token Ring switching and 100Mbps Token Ring to the desktop, as well as taking advantage of the convergence of voice, video and data over IP through its expertise in IP-based video networking.

Mike Wilson, CEO of Madge.connect, said: "Madge has a worldwide reputation for product quality and outstanding customer service. As we look forward to the next millennium we see a world that is integrated with the new IP technologies and which forms the backbone of business communications. We have put into place the corporate structure to enable us to realize this vision and to create the opportunities in the marketplace needed to achieve strong growth."

The company is to maintain its existing core facilities located in the United Kingdom and in the US and is in the process of executing the expansion of its global network of datacenters and points of presence (PoPs) to service the Madge.web operation. All sales and support channels for Madge.connect products will remain unchanged although the company will be seeking additional channels to exploit new markets as it continues to invest in new technologies.

Founded in 1986, Madge Networks N.V. is a global managed network services and product solutions provider specializing in mission-critical enterprise needs. The company's goal is to optimize the implementation of enterprises' voice, video and data networks with the ultimate aim of converging all networking needs on Internet Protocol (IP) solutions. The company's main business centers are at Wexham Springs, United Kingdom and Eatontown, New Jersey. Madge Networks N.V., a company organized under the laws of the Netherlands, is the parent company of Madge Networks. Information about Madge's complete range of products and services can be accessed on the World Wide Web at www.madge.com.