3Com Extends its Reach to the Internet with ISDN Innovator AccessWorks; Products and Technologies Enhance 3Com's Strategy for Low Cost, Remote Connectivity Options.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 18, 1995--Global data networking leader 3Com Corporation today announced it is expanding its portfolio of ISDN (Integrated Services Digital Network) solutions through the acquisition of its ISDN development partner, AccessWorks Communications. Located in Holmdel, NJ, AccessWorks currently supplies the market with a family of ISDN digital transmission products under the QuickAccess brand name, which provides users reliable, high-speed access to the Internet, on-line information services, private corporate networks and the Information Superhighway.

Widespread end-user demand for low-cost, high-speed connectivity to both corporate networks and on-line services is encouraging the rapid deployment of ISDN worldwide. Combining AccessWorks' products and technological expertise with 3Com's leadership position in end-system connectivity and remote LAN access will provide both businesses and individual users with comprehensive, cost-effective ISDN solutions.

"ISDN is a fundamental technology for building high-performance, global networks, and key to 3Com's success in the emerging small and home office environments," said Eric Benhamou, chairman and chief executive officer of 3Com. "The team at AccessWorks fully understands the unique requirements of these users and has strong relationships with many Internet Access Providers, such as Performance Systems International (PSI) and UUNET, which will accelerate 3Com's entry into these fast growing worldwide markets."

Connectivity systems implementing ISDN solutions are an increasingly important component of 3Com's High Performance Scalable Networking (HPSN) architecture, which provides a framework for scaling network performance and extending the reach of networks to users anytime and anywhere. Under the auspices of HPSN, 3Com has already begun delivering on its commitment to provide connectivity to both remote and personal offices with a broad range of ISDN solutions incorporated into the company's NETBuilder II and NETBuilder Remote Office routers, AccessBuilder remote access servers and network interface cards.

The increased utilization of graphical user interfaces and bandwidth-intensive applications such as multimedia and video are accelerating the deployment of a worldwide ISDN infrastructure for both commercial and Internet users. These trends combined with the growth of portable and stationary desktop devices in remote and home offices require high speed, low-cost, reliable connectivity. In addition, Internet navigation utilities are becoming staple features of the leading commercial operating systems, such as Windows '95, Windows NT, NetWare, OS/2 Warp and Mac Systems. These built-in features simplify and increase the usage of Internet access.

"With its leadership in desktop connectivity, strong brand name, low-cost volume manufacturing capabilities and broad distribution franchise, 3Com is uniquely qualified to lead the development of both the remote LAN and Internet access markets," said Reginald Best, president of AccessWorks Communications. "Together, we will be able to deliver our solutions cost-effectively to a broader range of customers than has previously been possible."

Digital Transmission: Quick Access to a World of Information

QuickAccess products deliver a higher level of service, faster access, greater aggregate bandwidth and bandwidth-on-demand, all at a lower overall cost than analog solutions. Individual users and organizations who use the Internet and other on-line services, especially for large-text, graphic-intensive or multimedia programs, are ideal customers for these products. Other audiences include telecommuters who require cost-effective remote LAN access.

The acquisition, for an undisclosed amount, builds on a financial investment that 3Com made in AccessWorks last year. The transaction is expected to close next month and is not expected to materially affect 3Com's financial results.

AccessWorks will be incorporated into 3Com's Network Adapter Division, headed by 3Com vice president and general manager, Doug Spreng. Reginald Best will become a 3Com vice president and lead a combined team of AccessWorks and 3Com personnel in developing a broad family of ISDN end-system solutions for both commercial and Information Superhighway applications.

"We are excited about leveraging AccessWorks engineering expertise as well as their excellent relationships with the emerging new breed of Internet Access Providers and ISDN resellers," said Spreng. "Together we can accelerate the deployment of ISDN technology in both the small office and home office, establishing the 3Com brand with a new, emerging group of networking users."

Founded in 1979, 3Com Corporation (NASDAQ:COMS) pioneered the data networking industry, and is the world's second largest networking company. Today, 3Com offers customers a broad range of ISO 9000-compliant global data networking solutions that include routers, hubs, switches and adapters for Ethernet, Token Ring and high-speed networks. Headquartered in Santa Clara, Calif., 3Com is a Fortune 500 company with worldwide research and development, manufacturing, marketing, sales and support capabilities. -0-

NOTE TO EDITORS: 3Com is a registered trademark and NETBuilder, NETBuilder II and AccessBuilder are trademarks of 3Com Corporation. All other trademarks belong to their respective organizations.

CONTACT: 3Com

Valerie Bellofatto, 408/764-6194 (Public Relations)

Kate Patterson, 408/764-6802 (Investor Relations)