Compuserve Selects StrataCom for Worldwide ATM Network; Explosive Demand for Internet Access, a 350% Increase in Frame Relay Services and a Projected Subscriber Base of 5 Million Drive CompuServe to ATM.

SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 13, 1995--In response to exploding levels of consumer and commercial network traffic, CompuServe(R) today said that it selected StrataCom's BPX(TM) and IGX(TM) asynchronous transfer mode (ATM) switches as the foundation for a worldwide broadband ATM network.

Though financial details of the agreement were not disclosed, CompuServe said it plans to spend $30 million over the next two years on StrataCom switches in order to build a production quality ATM network.

Under the agreement, CompuServe will initially purchase and deploy more than 40 StrataCom IGX and BPX ATM switches along with StrataCom AXIS(TM) interfaces shelves.

The strategic network initiative is vital to CompuServe's ongoing strategy of leveraging high-speed network technology to drive its leadership positions in Internet access and transport services, corporate managed data network services and on-line information services -- all of which have seen overwhelming growth over the last 8 to 12 months.

"CompuServe is its own best customer," said Robert McKinney, manager of Internetworking Services for CompuServe. "Nearly every dollar generated is based on the network." CompuServe noted that ATM is key to building a resilient broadband network that will allow it to continue to provide outstanding service levels to its three core businesses. "CompuServe itself will be a significant, if not one of the biggest, user of ATM services," McKinney added.

CompuServe currently operates an extensive StrataCom IPX(R) global network. This network comprises the company's T1 (1.544 Mbps), cell-switched backbone supporting millions of CompuServe Information Service members and Internet users as well as approximately 900 commercial customers of frame relay, X.25 and integrated solutions for Lotus Notes(R) and the World Wide Web. CompuServe's network services are available from approximately 150 countries worldwide.

KEY CRITERIA: MANAGEMENT, SCALABILITY

According to CompuServe, criteria for the platform included advanced ATM network management, high scalability and broad interface support.

"In the IGX, StrataCom clearly offered the best match for CompuServe's unique requirements for a wide range of user interfaces," added McKinney. "Meanwhile, the ability to quickly scale the network to take advantage of more users and new services was a key differentiation in our selection of the BPX/AXIS combination."

EXPLODING CONSUMER, CORPORATE MARKETS

According to CompuServe, increasing traffic levels, high-speed access and transport and the promise of emerging services, such as desktop video, have justified the need for a broadband core.

"All three segments of our business are exploding at the same time," McKinney continued. "Our frame relay business grew over 350% last year, the CompuServe Information Services subscriber base is projected to hit 5 million this fiscal year, and we're seeing huge demand for Internet access.

TWO-PHASED NETWORK IMPLEMENTATION

CompuServe will execute its ATM upgrade in two concurrent phases over the next 12 to 18 months. Phase one, already underway, calls for the deployment of StrataCom BPXs in selected cities throughout the United States. The backbone will operate at 45 Mbps.

Phase two will include the deployment StrataCom IGX switches functioning as both an edge switch feeding the broadband BPX backbone and as a backbone node within the current IPX network to provide more cost-effective support for CompuServe's frame relay business.

"CompuServe's decision clearly validates the idea that broadband ATM in the wide area is best justified by using the technology to aggregate and deliver low-speed user traffic," said Peter Alexander, director of enterprise networking and VAN services for StrataCom. "We have continually maintained that low-speed traffic will drive the majority of ATM decisions in the wide-area for the foreseeable future."

COMPUSERVE

Established in 1982, CompuServe Network Services, a division of CompuServe Incorporated, provides companies around the world with frame relay, remote LAN access, X.25 packet services, IBM connectivity services and private replication for Lotus Notes(R) users. Complete Internet services include dial and dedicated access, security, software, private IP services and World Wide Web development and hosting. CompuServe is an H&R Block company.

Founded in 1955, H&R Block, a diversified services company, is the world's leading tax preparation and online information services company. CompuServe operates the most comprehensive network in the world, providing online services to more than 3.6 million members in more than 140 countries and network services to more than 850 corporate customers worldwide. H&R Block Tax Services provided tax-related services for almost one in every seven returns filed with the IRS in 1995, and served 17.1 million taxpayers in more than 9,500 offices worldwide.

STRATACOM

StrataCom, Inc. (NASD:STRM), based in San Jose, California, USA, develops, delivers and supports FastPacket networking systems for ATM applications in private wide area networks and public carrier servicer offerings, such as frame relay and ATM. StrataCom's family of products, including IPX(R), IGX(TM), BPX(TM), AXIS(TM), FastPAD(TM), and EdgeConnect(TM), is used to integrate and transport a wide variety of corporate information, including voice, data, video, LANs, image and multimedia traffic in narrowband to broadband ATM network applications. Visit StrataCom's home page at http://www.stratacom.com. -0-

Note to Editors: StrataCom and IPX are registered trademarks and BPX and IGX are trademarks of StrataCom, Inc. CompuServe is a registered trademark of H&R Block. All other product and/or company names are trademarks or registered trademarks of their respective companies.

CONTACT: StrataCom

David Callisch, 408/534-2521

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Barbara Burdick, 408/494-2003

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