Asante Expects 1998 Fourth Quarter Revenues to Up Approximately 50% Over the Third Quarter of 1998; Company Pleased With Results of New Strategy.

SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 7, 1998--Asante Technologies (Nasdaq:ASNT) today announced that it expects revenues for the fourth quarter ended October 3, 1998 to be up approximately 50% from the prior third quarter of $9.31 million.

Management also reported that gross margins have risen to over 30% in the fourth quarter this year, compared with 11% in the third quarter.

Management also indicated that it has made significant progress in implementing its new business plan, including realignment of cost structures, deployment of newly released proprietary ASIC based switches and development of retail channels. Actual results for the fourth quarter and fiscal year ended October 3, 1998, are expected to be reported on November 9, 1998.

Commenting on current business trends, Jeff Lin, Asante's Chairman, President and CEO, said, "We are beginning to benefit from the strategic plan we announced on July 21, 1998 as product demand has increased across all targeted categories: OEM, education, 10/100 switches, hubs and adapters.

"In addition, we are encouraged by results of our new retail program which features Asante Talk and 10/100 products. To strengthen our retail presence we are now working with Fry's and Comp USA, two of the nation's largest retailers, and have signed contracts with several seasoned manufacturers' representatives."

"Clearly, our efforts in refocusing the company with a new product roadmap and development of the retail, education, distributor, OEM and reseller channels are all demonstrating positive results. In addition, as evidenced by the significant improvement in our margins, we have also successfully reduced our overhead and operating costs."

About Asante

Founded in 1988, Asante Technologies, Inc. is widely recognized as a leader in providing high-performance LAN networking solutions for education, pre-press and other small-to-medium enterprise markets. The company's Ethernet and Fast Ethernet products include switches, hubs and adapter cards, as well as network management and network acceleration software.

Asante's products are sold through an international network of distributors, value added resellers (VARs), system integrators and retail channels. Asante's headquarters are located at 821 Fox Lane, San Jose, CA 95131; Telephone: [phone]. Asante's World Wide Web address is: www.asante.com.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or anticipated results, including those risks set forth under the caption "Business Risks" in "Management's Discussion and Analysis of Financial Condition and Results of Operations" of the company's Annual Report on Form 10-K for the year ended September 30, 1997, as amended, and in the company's subsequent Quarterly Reports on Form 10-Q and other reports filed from time to time with the Securities and Exchange Commission. Such risks include uncertainties associated with the restatement of the company's financial statements, pending stockholder class action litigation, the company's potential need for additional financing, and the company's ability to attract and retain qualified personnel, competition, and technological change. Readers should carefully review the risk factors described in such reports and other filings made by the company from time to time with the Securities and Exchange Commission.

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