3COM Unveils the NBX 25 LAN Telephony Solution for Small Businesses.

Business/Technology Editors

SANTA CLARA, Calif.--(BUSINESS WIRE)--June 21, 2000

Two Leading Telecommunications Distributors, ALLTEL and Graybar,

Plan to Provide Service and Support for Converged Data and Voice

Solution

A leader in IP telephony for commercial environments, 3Com Corporation (Nasdaq: COMS) today unveiled the NBX(R) 25 Communications System, the newest offering in its award-winning NBX voice and data communications product family. The NBX 25 system is an Ethernet LAN-based telephony and data solution that offers small businesses a single network for voice and data communications. 3Com distribution partners ALLTEL Corporation and Graybar plan to offer the NBX 25 system to U.S.-based authorized voice resellers that sell to businesses with fewer than 12 employees. Small businesses, such as independent retail stores, manufacturers, real estate and insurance offices, will have basic telephony capabilities with a powerful, simple application suite for better managed business operations.

"With our proven LAN telephony technology, we've developed a comprehensive yet easy-to-use voice solution that makes small businesses more competitive," said David Chu, director of product management and marketing, Voice Solutions Group, 3Com. "Today's announcement reinforces 3Com's commitment to delivering emerging technologies, such as IP telephony, for the channel and the commercial business market. With this new product, 3Com will open up national voice distribution channels and enable reseller partners to bring converged voice solutions to the small business market."

NBX 25 System Features and Services Reduce Total Cost-of-Ownership for Small Businesses

The NBX 25 system provides a range of features and services that cut the costs of implementation, as well as ease system installation and expansion through the NBX 25 Web-enabled system administration interface.

-- Call processing: Complete call processing features, such as built-in auto attendant, off-site notification, call forwarding and multiple call coverage points (hunt groups), including other users, voicemail, cell phones and pagers. Small businesses can customize inbound call answering service to create a 24x7 operation, ensuring important, after-hours sales and customer service opportunities will never be missed.

-- Built-in Voicemail and Multi-level Auto Attendant: Four AA ports and five multi-level auto attendants easily route incoming calls, making business communications more efficient. The product offers four hours of voicemail storage for all user and workgroup mailboxes.

-- Built-in LAN Infrastructure: Businesses can cost-effectively integrate new applications and services, such as shared files, applications, databases, printers, and Internet access, without the complexity of wiring a building for separate voice and data infrastructures.

-- Single Cable Plant: Eliminates dual voice and data cable plants, cutting the cost of traditional wiring in half, and bringing convergence to small businesses. A single cable plant simplifies the moves, adds and changes process, which is a large, hidden after-market expense with traditional key systems.

-- Web-based Administration: Browser-based system administration eliminates the complexity of implementing new features and simplifies the process of system moves, adds and changes. System administration and maintenance can be performed locally or remotely. An intuitive interface allows end users to program telephone sets with speed dials, BLF appearances and other services from the desktop. Additionally, system administrators can easily add new features for user groups, set up auto attendants and configure hunt groups by pointing and clicking through the configuration menus.

-- Call Detail Reporting: Provides analysis of telephone traffic through graphs and charts. Businesses can easily track growth, determine whether or not important calls are being missed, and manage call coverage at peak periods.

-- Call Center Capabilities: Allow service and sales groups to customize inbound call distribution so small businesses can implement call centers that previously were available only to large organizations due to the expensive equipment required.

NBX 25 System Configuration and Scalability

The NBX 25 system includes the following components: NBX 25 chassis; four-port analog line card; eight-port 10BASE-T hub card; NBX 25 call processor with support for a maximum of 25 devices (lines and stations) and APX four-port/four-hour voicemail. Additional NBX analog adapters and analog terminal cards; the NBX business telephones; line cards and hub cards are sold separately.

For growing businesses, the NBX 25 system can be upgraded easily to the flagship NBX 100 Communications System, providing complete investment protection. The entire system can be upgraded to support more users and new software capabilities with a simple call processor swap. Investments in multi-line phones, line cards, hub cards, chassis and other infrastructure is completely preserved.

ALLTEL and Graybar Plan to Provide Service and Support for NBX 25 System

The distributors ALLTEL and Graybar plan to offer two-tier distribution of the NBX 25 system. To assist resellers in marketing and installing 3Com's new voice solution, ALLTEL and Graybar plan to offer reseller training programs and second-level technical support.

With more than 300 employees worldwide, ALLTEL Communications Products, the product distribution division, has more than 50 years of experience in its industry and is a recognized leader in the supply and distribution of voice, data and video communications products.

"Our resellers rely on us to help them sort through the vast array of business communications solutions to determine the best-in-class offering," said Bob Cori, vice president of marketing, ALLTEL Communications Products. "The NBX 25 system is the ideal LAN telephony solution for small businesses seeking a competitive advantage through improved communications."

Headquartered in St. Louis, Missouri, Graybar is a leading national independent distributor of communications and data products. Representing thousands of manufacturers in the United States, Graybar distributes more than 1.1 million products and components and provides valuable distribution services for resellers and other customers.

"More and more, small businesses require converged voice and data services, regardless of the in-house IT support staff," said Dennis E. DeSousa, vice president, Comm/Data Marketing, Graybar. "The NBX 25 system will allow us to offer our resellers a comprehensive, yet easy-to-use LAN telephony solution that provides a single network for voice and data communications."

Resellers interested in the NBX 25 system can contact these distributors for product and ordering information:

ALLTEL Communications Products: 800-7-ALLTEL

Graybar: 800-GRAYBAR

3Com(R) NBX 25 Pricing and Availability

Scheduled to become available in July 2000, the suggested retail price for the NBX 25 system is $5,180 USD based on a four line-by-eight station standard system configuration and includes a two-year warranty.

For any other information on 3Com's NBX product family, please contact 3Com directly at 1-800-NET-3COM.

About ALLTEL

ALLTEL, with more than 9 million communications customers, $6.5 billion in annual revenues and 24,000 employees, is a leader in the communications and information services industries. ALLTEL has communications customers in 25 states and provides information services to telecommunications, financial and mortgage clients in 55 countries and territories.

About Graybar

Graybar, a Fortune 500 service provider, is engaged internationally in the wholesale distribution of electrical and comm/data equipment and integrated supply services, primarily to contractors, industrial plants, telephone companies, power utilities and commercial users. Graybar is one of the largest employee-owned companies in the United States, with approximately 9,400 employees and 282 stocking locations throughout the U.S. and Canada. The company has been in business for 130 years. Annual sales in 1999 exceeded $4.3 billion. Headquarters is in St. Louis, Missouri.

About 3Com Corporation

With more than 300 million customers worldwide, 3Com Corporation connects more people and organizations to information and each other in more innovative, simple and reliable ways than any other networking company. 3Com delivers web-enabled solutions to consumers, small- to medium-sized business locations and network service providers. For further information, visit 3Com's World Wide Web site at www.3com.com or the press site at www.3com.com/pressbox.

3Com and NBX are registered trademarks of 3Com Corporation. All other company or product names may be trademarks of their respective companies.