Ericsson to "Private Label" N.E.T. IDNX Communications Resource Manager and Bundle with CONSONO MD110 PBX; Combined System Reduces Costs and Improves Network Efficiency.

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Feb. 16, 1995--Network Equipment Technologies, Inc. (N.E.T.) and Ericsson Business Networks AB today announced that Ericsson will "private label" the N.E.T.(TM) IDNX(R) Micro 20 Communications Resource Manager and market it as the MD110 Communications Resource Module. Ericsson will package the new module with its highly successful MD110 digital business exchange for voice and data communications (PBX), creating the industry's first combined PBX/Communications Resource Manager product offering.

The MD110 Communications Resource Module offers voice compression and data capabilities that allow customers to create integrated WAN networks resulting in increased traffic capacity, cost savings and network efficiency.

"Our customers are looking for ways to consolidate voice and data traffic, reduce costs and improve network management -- and the combination of N.E.T. IDNX capabilities with the Consono(R) MD110 PBX hits the target in a cost-effective manner," said Lars Boman, vice president and general manager, Ericsson Business Networks AB. "The new MD110 Communications Resource Module gives our PBX customers additional capabilities to maximize ISDN-based networking, route LAN traffic and support frame relay traffic."

The module can be equipped with the integral LAN/WAN Exchange(TM) (LWX) multiprotocol router from N.E.T, which is based on Cisco router code. The LWX interconnects LAN-based client-server applications. The Frame Relay Exchange(TM)(FRX) option from N.E.T. can also be added to complement Ericsson's frame relay network offering. Also, the N.E.T. ISDNX(TM) switching option can be added to enhance switched bandwidth-on-demand, voice, video applications and other ISDN functions on the network backbone.

"N.E.T. and Ericsson established a strategic partnership to leverage the expertise of each company to the best advantage of our mutual customers," said Ed Peverell, senior vice president of sales and marketing for N.E.T. "This advantage is clearly demonstrated with this announcement."

Under this Original Equipment Manufacturer (OEM) agreement, N.E.T. will manufacture the MD110 Communications Resource Module for Ericsson. Ericsson has worldwide distribution rights for the new module, which will be targeted at both new and existing Ericsson customers in over 50 countries. Customers should contact their Ericsson distribution channel directly for details.

The new MD110 Communications Resource Module is based on the established N.E.T. IDNX family of Communications Resource Managers. The IDNX family consists of five sophisticated networking models that combine efficient multiplexing, intelligent call-routing, LAN internetworking, frame relay switching, ISDN signaling and network management. The product family also offers a migration path to asynchronous transfer mode (ATM) capabilities.

Ericsson's Consono MD110 PBX is one of the world's best-selling PBXs with 8.5 million lines sold in more than 60 countries. The modular MD110 features a compact system design with servers for applications such as multimedia communications, Consono Call Center systems and Consono Business PCS (Personal Communications Services). The Consono MD110 PBX is complemented by a new range of digital system telephones, DIALOG 3000, and a new network management solution, MD110 Application Suite.

Ericsson's 75,000 employees are active in more than 100 countries. Their combined expertise in switching, radio and networking makes Ericsson a world leader in telecommunications.

N.E.T., headquartered in Redwood City, Calif. (NYSE: NWK), is the premier worldwide supplier of multiservice backbone networks for information-intensive enterprises and network service providers. The company has networks installed in more than 50 countries. Customers include financial, transportation, manufacturing, service, government, telecommunications service and other organizations requiring the efficient and reliable transport of mission-critical information on a regional, national or global basis. N.E.T. is certified to the exacting worldwide ISO 9001 standard for design, manufacturing and servicing and to the TickIT quality standard for software development. -0-

Note to Editors: Network Equipment Technologies, N.E.T., LAN/WAN Exchange, Frame Relay Exchange, ISDNX and the N.E.T. logo are trademarks, and IDNX is a registered trademark of Network Equipment Technologies, Inc.

Consono is a registered trademark of Ericsson Business Networks AB.

CONTACT: Network Equipment Technologies, Inc.

Paul Morrison, 415-780-5010 (Media)

Ann Candelario, 415/780-5605 (Investor Relations)

Ericsson Business Networks AB

Lena Hyttsten, 011 46 8 422 0317 (Media)

Per-Ola Pettersson, 011 46 8 422 0000 (Product Marketing)