Cabletron's founders modify diversification plan.

ROCHESTER, NH--(BUSINESS WIRE)--March 21, 1996--Cabletron Systems (NYSE:CS) announced that its founders, President and Chief Executive Officer S. Robert Levine and Chairman and Chief Operating Officer Craig R. Benson, may periodically sell a part of their Cabletron holdings in transactions pursuant to Rule 144 under the federal Securities Act of 1933.

Messrs. Levine and Benson, who have historically limited their sales of Cabletron stock to registered underwritten secondary offerings, have now determined that with sustained increases in the volume of trading in Cabletron's stock, periodic selling under Rule 144 could satisfy their goals of diversifying their holdings without adversely affecting trading in Cabletron securities and without the disruption and cost including management time that are associated with an underwritten public offering. Rule 144 provides a safe harbor permitting corporate executives to sell securities without registration with the Securities and Exchange Commission. Sales pursuant to the rule are subject to certain volume limitation and other requirements.

Cabletron Systems is the recognized leader in high-performance intranetworking solutions, including LAN and ATM switches and advance network and systems management software. Under its Synthesis product framework, Cabletron markets products throughout the world for linking and managing enterprise-wide networks.

With corporate headquarters in Rochester, NH, Cabletron employs over 5,700 people worldwide. A component of the S&P 500 index, Cabletron's common stock is traded over the New York Stock Exchange under the symbol CS. Over the last four quarters the company has reported record revenue of approximately $1.1 billion.

CONTACT: Cabletron

Ed Cortes, 603/337-4225

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Mike Deshaies, 603/337-1402

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