Farallon Ships Next Generation Netopia ISDN Modem To Double Performance and Reduce Installation Time.

ALAMEDA, Calif.--(BUSINESS WIRE)--Oct. 21, 1996--Farallon Communications, Inc. (NASDAQ: FRLN) today announced the availability of its next generation Netopia ISDN Modem to double performance and reduce installation time for individuals, SOHO workers and telecommuters accessing the Internet, corporate Intranets and remote LANs.

The new versions, models 612 and 412, will support Windows/PC and MacOS users respectively.

With this announcement, Farallon continues to offer the most innovative, robust, easy and complete high-speed Internet solutions for individuals and workgroups. Customers can now select the Netopia Internet solution that best meets their needs from among Farallon's line of Netopia workgroup ISDN routers and personal ISDN modems, Internet connectivity software, and unique Internet support services including Up & Running, Guaranteed!

"With today's introduction, we are delivering on our promise to provide users with the highest performing, yet easiest to use Internet access solutions," said Anil Uberoi, director of Netopia Systems.

New Features

Farallon delivers the easiest and most cost-effective Internet access solution for individuals by offering: a terminal adapter with built-in ISDN NT1 "U" interface, easy-to-use configuration software, bundled Internet connection software, robust security and industry-leading technical support. This next generation of the Netopia ISDN Modem includes the following new high-performance features:

-- Doubled serial port speed to 230Kbps, twice the top speed of most competitive products, and eight times that of 28.8Kbps analog modems. High-speed serial port leverages the advanced serial capabilities of current PCs and Macintoshes.

-- LZS data compression condenses file sizes up to a quarter of their original size. Using compression with the high-speed serial port, users can realize 230Kbps throughput on a 128Kbps 2B channel connection. Further, by using compression on a single B channel, customers can achieve, at half the usage cost, throughput with one B channel that rivals that of competitive products with two B channels.

-- Two POTS jacks, instead of one, to connect a user's phone, fax and answering machine, giving users the flexibility to use two analog devices simultaneously over the same ISDN line. This is a critical feature for a small or remote office.

-- ISDN Assistant automatically detects the switch type at the telephone company central office, determines the SPID numbers, and then configures the modem - all automatically in a single step. This innovative feature can have the user up and running in a matter of minutes.

-- Multilink PPP features allow greater flexibility for users taking advantage of the two ISDN B channels. Working with the flexible Call Offering feature of the switch at the telephone company, dynamic bandwidth allocation now automatically releases one B channel of a two B channel data connection when an incoming call is detected. The Netopia ISDN Modem continues to support this capability for outgoing calls.

-- Toll Saver dialing allows users to place a data call over an ISDN line set up for voice connections, saving toll charges in regions where applicable.

-- Sleek and compact industrial design preserves desk space.

Unique Features

Farallon will continue to provide unique features such as:

-- CustomerCare, Guaranteed! provides a range of free services to ensure that Netopia users have access to the latest technical assistance and product enhancements. Services include lifetime on-line technical support via e-mail and Web site, 60-day toll-free telephone support and the Netopians@large user forum.

-- Up & Running, Guaranteed!, part of Farallon's CustomerCare, Guaranteed! service programs, is offered as a $99 option to Netopia ISDN Modem customers to eliminate ISDN access hassles. Through the program, individuals will be guaranteed end-to-end Internet connection services, from ordering and provisioning the ISDN line, to connecting to an Internet service provider and helping configure the Netopia ISDN Modem. The program also includes a free 30-day trial of Farallon's popular Timbuktu Pro remote control software for Windows and MacOS.

-- NetopiaCare, Guaranteed! is a three-year on-going support program for all Netopia users who depend on their Netopia ISDN Modem as a critical tool for their productivity.

-- Best-of-class Internet client software so that users can become productive immediately. Farallon has bundled with the Netopia ISDN Modem leading Internet software for Windows and Macintosh platforms.

-- All necessary cables bundled at no extra charge

Netopia Channel Programs

Farallon designed a unique North American channel program around the Netopia family for network VARs (Netopia Certified VAR Program) and Internet service providers (ISPs). The Netopia Internet Solution Provider Program (NISPP) program recognizes ISPs as a key distribution channel by providing them with opportunities to resell Netopia products. The program includes product discounts, demo units, joint marketing programs, and special support features. Farallon also works with its LAN specialists, StarResellers and Smart Plug and Play Network resellers for the Netopia Internet family.

"The Netopia ISDN Modem was the unparalleled leader in our tests and lead to our partnership with Farallon. We certified the product and developed a special bundle for our consumer and small business customers," said Orhan Onaran, president of Erol's Internet Services in Washington, D.C.

Pricing and Availability

The Netopia ISDN Modem will be available initially in North America with specific versions to be available later for international markets. The PC/Windows version (model 612) and the Macintosh version (model 412) are immediately available at a U.S. estimated street price under $400.

Founded in 1986, Farallon Communications, Inc. develops complete, easy-to-use Internet connectivity solutions and real-time Internet/Intranet collaboration software. The Company's products are designed to increase the productivity and efficiency of Internet, Intranet and LAN users and to target remote offices, home offices, mobile users, small businesses, and schools that may not have access to sophisticated technical support. Further information can be obtained via phone [phone], fax [phone], Internet "[e-mail]," or Web "www.farallon.com." Farallon products are available through distributors and resellers worldwide, as well as through licensing relationships with other computer vendors. Farallon has its headquarters in Alameda, Calif., and its European office in Paris.

-0-

Note to Editors: The Farallon logo design is a registered trademark, Farallon and Netopia are trademarks, and Up & Running, Guaranteed!, CustomerCare, Guaranteed! and NetopiaCare, Guaranteed! are service marks of Farallon Communications, Inc. All other trademarks are the property of their respective holders.

CONTACT: Farallon Communications, Inc.

Amal Abed, 510/814-5307

[e-mail]

or

Thomas Associates, Inc.

Jay Roberts, 212/332-7800

[e-mail]

or

Electronic press releases:

http://www.farallon.com/www/gen/relpage