3Com's NBX 100 Communications System is the First Ethernet LAN Telephony System Eligible for Federal E-rate Funds.

Business/Technology Editors

SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 17, 2000

Schools and libraries nationwide can now apply for federal

E-rate funds to install the NBX 100 communications system to deliver

phone service over local area networks

3Com Corporation (Nasdaq:COMS) today announced that its award-winning NBX(R) 100 communications system is now the first Ethernet-based telephony system to qualify for federal funding through the E-rate program. The E-rate program, funded by an amendment to The Telecommunications Act of 1996, provides for $2.25 billion annually for eligible K-12 schools and public libraries to purchase networking equipment, telecommunication services, internal connections, and Internet access at substantial discounts. Eligible components of the NBX 100 communications system, including the chassis, call processor, line cards, and 10BASE-T hub cards, join the extensive portfolio of 3Com's networking products eligible for purchase through the E-rate program.

"We are extremely proud to be the first networking company to offer an Ethernet LAN telephony system that qualifies for funding through the federal E-rate program," said David Katz, director of 3Com's Global Industry Marketing. "This eligibility is excellent news for the nation's schools and libraries. The NBX 100 communications system enables them to enhance their existing data networks with voice capability, providing greater security in the classroom for a fraction of the cost of a separate PBX system. It also enhances their capability to deliver a converged voice and data multimedia curriculum on a single network."

Adding voice capabilities to a converged 3Com(R) e-Network is a cost-efficient way for educators to access new and innovative teaching tools in the classroom, while having the ability to keep in touch with the front office, other teachers, parents, or emergency services.

3Com e-Networks are optimized specifically to meet the demands of today's high-performance, converged networks in a variety of industries. In education, e-Networks provide high-speed, secure access for administrators, teachers, parents, and students who need to connect to digital information from multiple access points, including classrooms, offices, and homes. e-Networks in schools also enable teachers to tap into a rich array of interactive educational applications, such as distance learning, digital libraries, streaming media, Web-based learning, video conferencing, and a multitude of other multimedia resources on the Internet.

The 3Com NBX 100 communications system provides for voice services over data networks, dramatically reducing the expense of cabling and installation and the need for separate data and phone networks. Moreover, if an organization doesn't have a data network in place or needs to upgrade an outdated network -- as is the case in many school and libraries -- the NBX 100 communications system offers built-in local area network (LAN) capabilities. The system also provides converged e-Networking capabilities.

The 3Com NBX 100 communications system is highly rated among industry experts and has received over a dozen top-industry awards, including most recently Communications Solutions Expo Fall 1999 "Best of Show" for R2.0. At COMDEX/Fall '99, PC Magazine awarded the NBX 100 communications system with its "1999 Technical Excellence Award." Internet Telephony designated the NBX 100 communications system as a "Product of the Year," and at Internet Telephony Expo, the product won "Best of Show."

For a complete resource about E-rate, go to www.3com.com/erate

About 3Com Corporation

With over 300 million customer connections 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 e-Networking solutions through information access products and network systems to enterprises, small businesses, consumers, carriers 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.