CHIPCOM UNVEILS LAN-TO-ATM ROAD MAP.

SOUTHBOROUGH, Mass.--(BUSINESS WIRE)-- April 18, 1995--Chipcom Corporation (Nasdaq/CHPM) today unveiled its system strategy for migrating customers to next-generation Asynchronous Transfer Mode (ATM) networking. Called the Chipcom Cornerstone Networking Architecture (CCNA), this road map offers companies a uniquely open and graceful approach to transforming their existing network infrastructure into tomorrow's high-speed virtual and switched campus networks.

According to Gordon Saussy, vice president, product marketing, at Chipcom, "CCNA defines Chipcom's vision and ultimate destination of Virtual Networks, and demonstrates the phases we will take and the products we will deliver to our customers to lead them to this destination. CCNA also encompasses the cornerstones of Reliable, Open, Adaptive and Migration as our guiding principles -- principles we've been embracing throughout our history."

Three Phases of Virtual Networking

CCNA is Chipcom's framework for gracefully migrating today's networks to the future benefits of Virtual Networking. Regardless of the stage of maturity and functionality of a network, CCNA addresses short-term user needs while at the same time lays the groundwork that will enable customers to meet their business challenges a decade away.

Building on Chipcom's late March introduction of a suite of new ATM products, developed jointly by IBM and Chipcom as part of the long-standing, strategic development and marketing alliance betwen the two companies, CCNA takes the following three-phased approach to deliver next-generation networking capabilities to users:

Phase One: Logical Management for Legacy and Switched LANs -- CCNA will provide network managers with easy-to-use and visual "tools" that enable them to look at their networks logically, as users communicating with resources, instead of as an accumulation of separate devices. Where competitive management tools provide only a physical, device-level view of their networks, Chipcom's logical management capabilities will allow users to observe conversations between nodes, and use knowledge-based rules which will enable them to make informed decisions while creating network models. These on-screen "drag-and-drop" capabilities simplify network reconfigurations.

These tools -- demonstrated at last month's NetWorld + Interop show in Las Vegas and scheduled to be available to users this summer -- represent a fundamental first step from classical LANs to the Virtual Networks of the future.

Phase Two: Packet Switching to Emulated LANs -- Users today are planning to install ATM backbones in the future for their high-speed capabilities, and view this commitment as a strategic, long-term investment. Chipcom believes this transition to ATM backbones for users must be evolutionary, not revolutionary. Compliance with industry standards and compatibility with other vendors' offerings to enable open, multivendor ATM networks are the core of CCNA.

Chipcom will be delivering ATM switching and LAN-to ATM switching within its ONcore? Switching System platform. Phase Two Virtual Networks will be built through switching of existing LANs and sub-networks onto Emulated ATM LANs using ATM Forum specifications. This capability enables Chipcom's customers to build multivendor ATM Virtual Networks and to leverage existing architectures while laying a foundation for the future.

Phase Three: Multiprotocol Packet Switching to Virtual Networks -- This phase will enhance Phase Two to include full Multiprotocol Over ATM (MPOA) Layer 3 switching, based on work underway in the ATM Forum. The extension to Layer 3 switching allows full virtualization of network topologies and enables users to fully exploit the capabilities of ATM. Finally, networks can be built and viewed from an applications resources perspective without physical constraints.

According to Chip Pettirossi, senior analyst at International Data Corp., "Chipcom has clearly articulated its shared-to-switched networks vision for its customers. Unlike its competitors, the CCNA blueprint envisions the enterprise network as an applications delivery vehicle, rather than as a collection of boxes."

Four Cornerstones

CCNA defines a very different path to ATM compared with the so-called 'vision strategies' of competitive vendors. The differences are based on four key architectural "cornerstones," which are designed to ease the migration to the switched and virtual networks of the future. These four cornerstones are:

o Reliability -- CCNA defines next-generation networks that are reliable, without a single point of failure. Consequently, Chipcom's hallmark fault-tolerance is built into every level of the network infrastructure -- from the desktop, to links, to the ATM backbones; from the stackable and workgroup hubs to enterprise switching systems.

o Openness -- Where competitive approaches try to impose a single-vendor solution, Chipcom's architectural framework relies on an open, multivendor strategy that protects customers against uncertainty or vendor lock-in.

Chipcom believes no one vendor "can do it all" well. Consequently, the company has partnered with networking leaders such as IBM, Cisco Systems and others to pioneer ATM and virtual networking technologies, and to ensure ATM interoperability between different vendors' products.

Chipcom is also the only intelligent switching systems vendor to open up its architecture to third-party networking product vendors. Through its unique Chipcom OpenHub (TM) Program, customers can build switched campus networks choosing from a variety of "best of breed" products.

o Adaptability -- CCNA allows customers to easily customize their network infrastructure to accommodate ever-changing network demands. Chipcom pioneered this adaptability with the industry's first port-switching intelligent hubs and software-definable virtual switches. The unique, adaptive capabilities of Chipcom's products enable users to modify, expand and enhance their networks with simple software commands, ensuring that the network manager's time can be spent delivering applications, not maintaining infrastructures.

o Migration -- Because customers want to invest in the potential of tomorrow's ATM networks without abandoning what they have today, CCNA defines both products and methods for a graceful, seamless migration to ATM from today's LANs. Chipcom is the only intelligent switching systems vendor that has built in forward-compatibility in its product line. CCNA ensures a smooth migration by its ability to deliver a full range of solutions -- including hubs, packet switching and ATM cell switching -- within one architecture.

Products and Technology

Products within the Chipcom Cornerstone Network Architecture span three levels: ATM campus backbone networks carrying Virtual Networks, multiprotocol LAN switches interfacing to ATM networks, and a full range of stackable hubs, workgroup hubs, enterprise hubs and ATM-to-the-desktop products.

The ATM backbone product set includes a range of ATM Switch/Control Point and User Network Interface Modules for the ONcore Switching System. These ATM products enable the ONcore System to deliver ATM switching, LAN switching and shared LAN concentration in a single platform.

ATM workgroup products within CCNA include an ATM version of Chipcom's ONsemble StackSystem (TM) workgroup hub and PC/workstation adapter cards that deliver ATM to the desktop.

For LAN-to-ATM migration, CCNA will include an ONsemble LAN-to-ATM bridge, multiprotocol LAN-ATM switching modules for the ONcore System and LAN emulation services for ATM networks.

To manage the next-generation ATM networks, CCNA also brings new ATM campus management capabilities to Chipcom's ONdemand (TM) Network Control System.

Founded in 1983, Chipcom Corporation designs, manufactures, markets and services fault-tolerant intelligent switching systems, including hub, internetworking and network management products, for remote site, campus and enterprise network computing environments. The fast-growing Southborough, Mass.-based company reported record revenue of $268 million for its 1994 fiscal year, ended December 31, a 67 percent increase over 1993. According to the market research firm Dataquest, Inc., Chipcom is the world's third largest supplier of intelligent hubs. Together with its resellers, Chipcom has a presence in more than 40 countries, and the company employs over 850 people worldwide.

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Chipcom, the Chipcom logo, ONcore and ONsemble are registered trademarks and Chipcom OpenHub, ONdemand and StackSystem are trademarks of Chipcom Corporation.

CONTACT: John H. Ricciardone Glen M Zimmerman

Chipcom Corporation Beaupre & Co. Public Relations 

508-624-6840 603-436-6690

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