3Com Outlines Path to Profitability.

NEW YORK -- Projects Operating Breakeven; Senior Executives Present Plan for Growth to Financial Analyst Community

At its 2005 Financial Analyst Day in New York City, 3Com Corporation (NASDAQ: COMS) today outlined the company's path to profitability through a focused growth strategy with operating breakeven targeted for its fiscal quarter ending February 2007.

At the event, members of 3Com's senior management team, including President and CEO Bruce Claflin and Chief Financial Officer Don Halsted, highlighted the company's strategy to achieve this important milestone by growing top-line revenue, increasing gross margins and continued operating expense efficiencies. The profitability target is based on 3Com's continued growth in sales to large enterprises as well as through increased sales of voice over IP (VoIP) and security solutions to enterprises of all sizes.

"The past three quarters of sequential revenue growth and improved financial performance is continuing evidence that we are executing our strategy," said Claflin. "By building on this momentum, we believe that we can achieve profitability through sustained growth and ultimately increase shareholder value."

The company also provided long-term financial guidance for the Huawei-3Com joint venture. Huawei-3Com has delivered six successful quarters, led by strong revenue growth in China. 3Com expects the Joint Venture to maintain its strong growth path through its global sales channels, leading with its full line of core-to-edge products for the enterprise market.

In addition to comments by Claflin and Halsted, members of 3Com's senior management team presented the company's strategy to be the leading provider of secure, converged network solutions. Presentations included James Fieger, senior vice president of Worldwide Sales and Service, who articulated the company's sales strategy, which includes significant efforts to maintain leadership in the midmarket through its existing base of channel partners and an increased emphasis on penetrating the large enterprise market through new system integrator and service provider partners. To that end, Chris Meaney, vice president of Secure Networks, Enterprise Networks Division of Siemens Communications commented on the strategic alliance between 3Com and Siemens that the two companies jointly announced today, and its role in 3Com's strategy. (For more information see today's press release titled "Siemens and 3Com Form Strategic Alliance to Provide Enterprise Security and Data Networking Alternative.") Jim Freeze, global vice president of Marketing, discussed the company's marketing initiatives and brand advertising campaign, which launched this week, and 3Com's chief technology officer, Marc Willebeek-LeMair, and senior vice President of product Operations, Hilton Nicholson, presented components of 3Com's technology vision and product roadmap.

The event was webcast live for broader audience participation and will be archived on the 3Com Investor Relations Web site for approximately one month.

Safe Harbor 

This press release contains forward looking statements within the meaning of the federal securities laws, including statements regarding the following: the company's target of achieving profitability by the third quarter of fiscal 2007; the sales growth, gross margin improvement and expense reductions necessary to achieve profitability by such time; future financial performance of the company's joint venture, Huawei-3Com; continued investments in, and expansion of, our channel, go-to-market and sales execution strategies; our strategic relationships and the expected benefits from those relationships; and increased investment in our branding and integrated marketing activities. These statements are subject to risks and uncertainties that could cause actual results and events to differ materially, including our ability to successfully execute our strategies; possible development or marketing delays relating to our product offerings; the success of our increased branding and integrated marketing activities; and our ability to successfully manage costs and expenses while simultaneously increasing the sales of our product to grow revenue. For a discussion of other risks and uncertainties associated with our business, please refer to our most recent filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended June 3, 2005.

About 3Com Corporation

3Com Corporation is a leading provider of secure, converged voice and data networking solutions for enterprises of all sizes. 3Com offers a broad line of innovative products backed by world class sales, service and support, which excel at delivering business value for its customers. Through its TippingPoint division, 3Com is the leading provider of network-based intrusion prevention systems that deliver in-depth application protection, infrastructure protection, and performance protection for corporate enterprises, government agencies, service providers and academic institutions. For further information, please visit www.3com.com, or the press site www.3com.com/pressbox.

Copyright (C) 2005 3Com Corporation. 3Com and the 3Com logo are registered trademarks and TippingPoint is a trademark of 3Com Corporation. All other company and product names may be trademarks of their respective holders.