Cabletron launches aggressive trade-up program for Chipcom and 3Com customers; The Cabletron Advantage Program - 40 percent rebate offer 90 day risk-free product trial.

ROCHESTER, N.H.--(BUSINESS WIRE)--Aug. 14, 1995--Cabletron Systems (NYSE:CS), the worldwide modular hub market leader, today launched an aggressive two-tiered trade-up program targeted at the existing installed base of Chipcom and 3Com customers.

Under The Cabletron Advantage Program, customers will be offered a no-risk incentive offer to evaluate Cabletron's complete line of products, including the company's cornerstone MMAC and MMAC-Plus switching platforms, advanced SPECTRUM network management products as well as its unparalleled direct service and support capabilities.

"Cabletron is taking an aggressive approach in an attempt to capitalize on customer issues resulting from the 3Com acquisition of Chipcom," said Tom Bain, research analyst for the Meta Group. "Cabletron's direct sales and support approach is a clear advantage for high-end chassis sales, especially considering the channel conflict that 3Com and Chipcom must resolve."

OFFER #1 - CORPORATE HEADQUARTERS VISIT Free Round-Trip Airfare/Accommodations

To help familiarize customers with the advantages of dealing with a single source vendor for support of their enterprise networks, Cabletron is offering free round-trip airfare and accommodations to its corporate headquarters and network management complex on the New Hampshire Seacoast.

Customers will experience the networking industry's largest and most sophisticated technical support, research and development and manufacturing operation. These customers will also be given the opportunity to build their own test network in Cabletron's extensive networking labs and view next-generation switching and network management products expected to be announced by Cabletron during the next few months.

OFFER #2 - DIRECT SALES AND SUPPORT INCENTIVES 40 Percent Rebate Offer/90 Day Free Trial/Free Phone Support

The Cabletron Advantage Program offers customers a rebate on new Cabletron products worth as much as 40 percent of the price they paid for previously purchased Chipcom and 3Com equipment. The rebate presents customers with the opportunity to avoid overlapping product lines and possible delays in product development, service and support common with mergers and acquisitions.

Customers of Chipcom and 3Com who switch to Cabletron will also be offered free on-site network needs analysis and a 90 day risk-free trial of Cabletron products with free telephone service support.

UNPARALLELED NETWORK MANAGEMENT SUPPORT Spectrum Test Drive/Free Device Modules

With the purchase of Cabletron's SPECTRUM for Open Systems network management platform, trade-up customers will be provided with free management modules for monitoring and controlling their installed base of Chipcom and 3Com devices. Unlike 3Com's Transcend and Chipcom's ONdemand management platforms, SPECTRUM provides network managers with full device management and control capabilities from a single platform.

Cabletron's offer to 3Com and Chipcom customers runs in parallel with an existing SPECTRUM Test Drive Program -- a risk-free opportunity for users of HP OpenView, SunNet Manager and IBM Netview for AIX customers to evaluate SPECTRUM 3.1. Cabletron's SPECTRUM is the only available distributed platform allowing multiple users at different sites to manage an enterprise network as a single entity.

"By providing a single-source solution, Cabletron assures customers that their networking needs are met completely, both in terms of the products and service we can provide," said S. Robert Levine, Cabletron's president and CEO. "The conversations we have had with many Chipcom and 3Com customers in recent days confirms our position that the merger of Chipcom and 3Com is not in the best interests of their customers," Levine said.

Headquartered in Rochester, N.H., Cabletron employs more than 5,000 people in over 80 offices around the world. The worldwide modular hub market leader(a), Cabletron is ISO-9001 certified. Cabletron develops, manufactures and markets Ethernet, FDDI, Token Ring, ATM internetworking and enterprise management software products based on its Synthesis product framework. Cabletron directly services more than 80,000 customer-sites around the globe and provides 7 x 24 support coverage, with free phone support during normal business hours. 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 $871 million and earnings of $174 million.

-0- (a) Source: Dataquest Inc.; February 1995

Cabletron's World Wide Web site can be reached on the Internet at http://www.ctron.com. Cabletron, SPECTRUM and Multi Media Access Center are registered trademarks of Cabletron Systems. All other products or services found in this document are identified by the trademarks or service marks of their respective companies or organizations.

CONTACT: Cabletron Systems

Mike Deshaies, 603/337-1402

e-mail: [e-mail]

or

Cabletron Systems

Darren Orzechowski, 603/337-1282

e-mail: [e-mail]