3Com Corporation Extends Market Share Leadership in Workgroup Ethernet/Fast Ethernet NICs, Hubs, and Switches.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Aug. 20, 1997--Global data networking leader 3Com Corporation (NASDAQ:COMS), continues to extend its market share leadership in the workgroup networking marketplace, gaining significant ground on rivals Cisco, Intel and Bay Networks according to the latest market research published by both In-Stat and the Dell'Oro Group.

"Today's network marketplace is driven by three demands: greater bandwidth, products that are easier to install and use, and lower costs," said John McCartney, president of 3Com's client access business unit. "3Com consistently delivers products that satisfy these demands and the best evidence that 3Com is succeeding is that 3Com's products are preferred over all others. Following 3Com's merger with U.S. Robotics, we have more than 100 million customers connected to networks and are the only company that can deliver high-speed network connectivity across the LAN and WAN." -0-

Dell'Oro Group and In-Stat Market Share Study Shows 3Com Leading the Way in Workgroup LANs

Specific worldwide results for the first six months of 1997 include the following:

-- 10/100 Mbps NICs: 3Com extended its lead in Fast Ethernet NICs with a 45% share in the first half of 1997, up from 39% at the end of 1996, according to In-Stat.

-- 10Mbps NICs: 3Com's long standing lead in Ethernet NICs increased, reaching 51% market share in the first half of 1997, according to In-Stat.

-- 10Mbps Unmanaged Hubs: 3Com strengthened its presence in the emerging small business market with the OfficeConnect range of networking solutions. 3Com's market share in unmanaged hubs jumped to 17% in the first half of 1997 from 10% at the end of 1996, according to the Dell'Oro Group.

-- 10 Mbps Managed Hubs: 3Com continued to grow market share leadership to 35% in the first half of 1997, more than double the percentage share of its nearest rival, Bay Networks, according to Dell'Oro Group.

-- 100 Mbps Shared Hubs: 3Com increased market share to 34%, more than three times that of its nearest rival, Intel, with Bay Networks declining from 19% to 12% market share, according to the Dell'Oro Group.

-- 100 Mbps Switching: 3Com continues to grow its position in workgroup Fast Ethernet switching, capturing 18% of the market in the first half of 1997, according to the Dell'Oro group. Meanwhile Cisco and Bay Networks lost share in this key category.

-- 10 Mbps Desktop Switching: 3Com maintains market leadership in this sector with 41% marketshare, ahead of Cisco at 28%, according to the Dell'Oro Group. -0- 3Com: Delivering Innovation, Strategic Relationships and Channel Programs to Earn Preference

During the previous six months, 3Com made several announcements designed to continue building customer preference. "Customer preference is based on experience, quality, and innovation. 3Com, as a result of its long-term presence in the workgroup Ethernet market, has earned the respect and confidence of its customers," said Edgar Masri, vice president and general manager of 3Com's premises distribution division. "3Com's customers know they're buying the best product available today and 3Com's innovations mean its products will deliver enduring value."

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Recent announcements indicating 3Com's leadership include the following:

New Technologies

-- Gigabit Ethernet technology - in April, 3Com was the first vendor to announce an end-to-end Gigabit Ethernet solution with five new products planned for shipment by Q1CY98. 3Com's Gigabit Ethernet solution was demonstrated at N+I Las Vegas in May.

-- NetPC ASIC - 3Com is the first networking company to support "thin client" platforms with a application-specific integrated circuit that delivers 10/100 Mbps Ethernet connectivity, along with innovative features such as Wake-up on LAN technology to lower the total cost of ownership of corporate PCs.

-- Managed NIC - 3Com -- in conjunction with LANWorks, ON Technology and McAfee Software -- demonstrated network interface cards designed to deliver unparalleled desktop management features to both new and legacy personal computers.

-- SuperStack II Switch 3000 10/100 Autosensing Switch: In June, 3Com delivered the industry's most cost-effective, 10/100 scaleable workgroup switch, offering a simple migration path to high speed technologies such as Gigabit Ethernet and ATM.

-- TranscendWare(TM) Software Innovations - new technologies that give corporations more control over the behavior and the overall cost of ownership of their data and multi-media networks.

Strategic Alliances

-- Streaming Multimedia - 3Com announced its support of Microsoft's strategy for streaming multimedia and its release of Microsoft NetShow 2.0 streaming media server.

-- IBM Alliance - a technology exchange and remarketing agreement to accelerate the delivery of advanced campus backbone and workgroup networking solutions

-- Siemens Alliance - a strategic alliance to create new products to address the growing market for integrated voice and data networks. -0-

Channel Programs

3Com Network Ready(TM) Program - 3Com announced a total of 30 3Com Network Ready Partners. These partners clearly indicate that customer preference extends from end users to channel partners to OEMs.

About 3Com

3Com Corporation enables individuals and organizations worldwide to communicate and share information and resources at anytime from anywhere. As one of the world's preeminent suppliers of data, voice and video communications technology, 3Com has delivered networking solutions to more than 100 million customers worldwide. With global reach and local touch, the company provides enterprises, network service providers and carriers, small businesses and consumers with comprehensive, innovative information access products and system solutions for building intelligent, reliable and high performance local and wide area networks. 3Com has worldwide revenues of more than $5.6 billion and employs approximately 13,000 people in 45 countries. For further information, visit 3Com's World Wide Web site at http://www.3com.com . -0-

Note to Editors: 3Com, OfficeConnect and SuperStack are registered trademarks and, 3Com Network Ready and TranscendWare, and 3Com Network Ready are trademarks of 3Com Corporation or its subsidiaries. All other brands and names are the property of their respective owners.

CONTACT: 3Com

Brian D. Johnson, 408/326-1962

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The Weber Group

Rebecca Behenna, 617/520-7057

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