AxoNet Introduces Low-Cost Ethernet Switch -- Breakthrough for Small to Medium-Sized Networks; $500 Ethernet Switch Duplicates Performance of Switches Costing Thousands More.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Feb. 3, 1997--AxoNet Technologies, Inc.,(TM) a new company focused on providing small to medium-sized environments with affordable networking equipment, today introduced its debut product, the AxoNet NC-100 Ethernet switch.

The NC-100 offers eight switched ports, each providing 10mbps of dedicated bandwidth to the desktop. Priced at $500, the NC-100 makes previously unattainable switching technology affordable for any business, allowing small to medium-sized companies to overcome the bandwidth limitations of conventional non-switching hubs.

Forrester Research recently estimated that 83 percent of all networks experience bandwidth shortages. The easiest way to solve this problem is to install a switch, but up until now Ethernet switches were prohibitively expensive, especially for smaller businesses. The NC-100 breaks through this price barrier by providing a switched network at a very low cost without compromising performance.

"AxoNet wants to be seen as the Robin Hood of networking technologies," said Pankaj Chowdhry, president and CEO, AxoNet Technologies.

"We have added features and performance to our Ethernet switch and reduced the price dramatically through product design and manufacturing. AxoNet's long term goal is to continue the leadership position it has taken in price performance for the 24-port or less networking area. By rapidly transferring new technology from the backbone and enterprise applications to the desktop level, we can help businesses share more information across intranets and other internal networks using everything from e-mail to workgroup collaboration."

Traditionally, switches have been relegated to backbones and workgroups due to their high cost. AxoNet has achieved the most aggressive pricing structure of any Ethernet switch manufacturer through its unique business and technology strategy. By adopting existing technologies, AxoNet has eliminated the expense of designing custom processors, and reduced its manufacturing costs by orders of magnitude. As a result, AxoNet can reduce the price of an eight-port Ethernet switch by several hundred percent.

By aggressively pricing its Ethernet switch on par with that of a managed hub, AxoNet is addressing a large market segment that requires switches for bandwidth, but could not previously afford to install them. AxoNet advances the business case for switches even further by preserving the existing infrastructure of network cards, cables, and software, which is important to companies with limited budgets.

NC-100 Ethernet switch

AxoNet's first product, the NC-100 Ethernet switch, provides eight fully non-blocking 10Mbps segments. Unlike conventional hub products, which share one collision domain among eight ports, the NC-100 dedicates a 10Mbps segment to every desktop with full wire speed switching.

In addition to minimizing costs while preserving high performance, AxoNet designed the NC-100 Ethernet switch for easy installation and configuration. AxoNet specifically addressed customer concerns about the complexity of installing switches, routers, and other networking devices.

The NC-100 Ethernet switch installs in 15 minutes or less and requires no upgrade of cabling, network interface cards, or software. Users simply unplug their hubs and replaced them with the NC-100. An intelligent, self-learning address mechanism automatically discovers the entire network, so no set-up is required at all.

Pricing and Distribution

The NC-100 Ethernet switch is available immediately through Creative Computers and Micro Warehouse, two of the nation's largest computer catalogue distributors. AxoNet is committed to a two-tier distribution channel utilizing value-added resellers (VARs) and computer equipment catalogue distributors to reach the widest possible audience both in the United States as well as internationally. The NC-100 Ethernet switch has a manufacturers suggested retail price of $500.

About AxoNet Technologies

AxoNet Technologies, Inc. was founded in 1996 to provide innovative, yet affordable networking products without compromise. AxoNet is committed to rapidly transferring advanced networking technologies to small and medium-sized businesses. AxoNet's aggressive pricing strategy enables smaller environments to make a business case for purchasing advanced networking technologies. AxoNet Technologies is headquartered at 2672 Bayshore Parkway, Suite 1055, Mountain View, CA 94043. -0-

Note to Editors: 1997 AxoNet Technologies, Inc. All trademarks and brand names are the property of their respective owners.

CONTACT: Reeves & Associates for AxoNet Technologies

Susie Reeves, 415/577-0688

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Julia Carey, 510/820-4300

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