3Com Creates CommWorks Corporation.

Business Editors/High-Tech Writers

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

Wholly Owned Subsidiary Delivers IP-Based Enhanced Data and

Voice Solutions to Service Providers; Irfan Ali Named President

of CommWorks Corporation

3Com Corporation (Nasdaq:COMS) today announced the creation of the CommWorks Corporation, a wholly owned subsidiary serving the service provider market. CommWorks Corporation, which will contain 3Com's Carrier Network Business, builds IP networks for network service providers around the world. These networks allow service providers to deliver enhanced data and voice services to their end users through dial, wireless, cable and digital subscriber line (DSL) access.

Irfan Ali has been named president of CommWorks Corporation. Ali served previously as senior vice president and general manager of 3Com Carrier Networks Business.

"CommWorks will have the freedom and resources necessary for success in the carrier marketplace, while leveraging the financial and technical strengths of 3Com Corporation," said Bruce Claflin, 3Com's president and chief operating officer.

3Com's remaining Commercial/Consumer Business will continue providing networking solutions for the commercial and consumer markets. The Commercial/Consumer Business, along with CommWorks Corporation, will be realigning their respective operating structures to enhance the focus and cost effectiveness in serving their markets. 3Com will take a one-time charge estimated to be between US$40 million and US$60 million in its fiscal third quarter ending March 2, 2001 in conjunction with this restructuring. When completed, 3Com is targeting savings of between US$200 million to US$250 million per year. These actions, coupled with modest growth in revenue, are expected to result in operating profitability in the first fiscal quarter of FY02.

"3Com intends to have two growth businesses, each of which generates superior financial returns," Claflin said. "We are committed to obtaining the benefits of focus, while investing in leadership products and services which drive profitable growth. All these actions are intended to create increased shareholder value."

CommWorks Strategy: Building Blocks for Enhanced IP Services

CommWorks Corporation supplies the access infrastructures and IP services platforms that open new business opportunities for service providers and helps them establish unique positions in an increasingly competitive marketplace. With flexible multi-service hardware platforms and modular software components, CommWorks Corporation makes it possible for service providers to integrate existing infrastructures with innovative technologies to deliver an array of next-generation IP-based enhanced services.

"We are a global leader in IP-based networking solutions for service providers," said Irfan Ali, president, CommWorks Corporation. "CommWorks networking solutions are already deployed by many of the world's leading carriers and service providers. We will build on these successes to deliver new and advanced networking solutions to enable carriers to reduce time to market, differentiate their services from competitive offerings and cost effectively migrate to next-generation networks."

CommWorks: Formidable Market and Technology Positions

CommWorks Corporation has formidable market and technology positions:

-- Decade-long leadership in remote access systems for service providers.
Today, more than 11 million Total Control(R) 1000 ports are deployed worldwide.


-- Global leadership in Code Division Multiple Access (CDMA) wireless data
access systems with better than 90 percent worldwide market share.

-- Among the world's top three providers of carrier-class IP telephony
equipment.

CommWorks Corporation customers include incumbent local exchange carriers (ILECs); interexchange carriers (IXCs); post, telephone and telegraph administrations (PTTs); competitive local exchange carriers (CLECs); Internet service providers (ISPs) and other alternative service providers. Seventeen of the world's 20 largest telecommunications service providers and scores of other customers use CommWorks hardware and software in their networks. These customers include America Online, AT&T, British Telecom, Cable & Wireless, China Telecom, NTT Communications, Sprint, Telefonica, Verizon and WorldCom. The CommWorks product portfolio includes the following:

-- IP Telephony

-- Wireless Data Access

-- Enhanced Data Systems

-- Cable Data Access

-- DSL Data Access

-- Call Control and Signaling

-- Gigabit Routing Systems

-- Network and Service Management

About 3Com Corporation

3Com simplifies how people connect to information and services through easy-to-use, connectivity products and solutions for consumers and commercial organizations. The company also provides access infrastructures and IP services platforms for network service providers. For further information, visit www.3com.com or the press site at www.3com.com/pressbox.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This news release contains forward-looking statements, including statements relating to an estimated charge between $40 million and $60 million 3Com expects to take during fiscal Q3 to accommodate the restructuring, that the restructuring is expected to be completed over the next four quarters, the estimated cost and expense reductions following the completion of the restructuring and estimated operating profitability in Q1 of fiscal year 2002. 3Com's actual results may differ materially from the results discussed in these forward-looking statements. Factors that might cause such a difference include risks surrounding the successful implementation of the proposed restructuring, potential disruption caused by the organizational changes involved in the restructuring, timely development, production and acceptance of new products, our ability actually to reduce overall cost and expense structures, and 3Com's ability to compete in the highly competitive and rapidly changing marketplace. These and other risks are detailed from time to time in 3Com's periodic reports filed with the Securities and Exchange Commission, including, but not limited to, 3Com's report on Form 10-Q for its fiscal year ended September 1, 2000.

Note to Editors: 3Com, CommWorks and Total Control are registered trademarks of 3Com Corporation.