Farallon Upgrades Netopia Internet Routers with Cost-Saving Features for ISPs, Workgroups and Telecommuters; New IPX Routing, Data-Over-Voice, Calling Number Authentication.

ALAMEDA, Calif.--(BUSINESS WIRE)--Sept. 9, 1996--Farallon Communications, Inc. (NASDAQ: FRLN), today announced free upgrade features that will significantly reduce ISDN costs, increase security and allow "pay as you go" Web site services by Internet service providers (ISPs) exclusively for Netopia Internet Router customers.

These features, which benefit workgroups, telecommuters, and ISPs, include calling number authentication (CNA), IPX routing, and data-over-voice. As a feature unique to Netopia, CNA enables ISPs to expand their service offerings for customer site-based Web sites, and greatly reduces customer Internet access costs. This widens the gap for Netopia as the price/performance leader of any workgroup ISDN Internet router in the industry - at time of purchase as well as during ownership, because of the ongoing savings customers will continue to receive. The new features are expected to be available in Fall and will be demonstrated at Farallon Booth No. 746 at Networld+Interop/Atlanta next week.

"The combination of our unique ease-of-use implementation and these new cost-saving and security features allow us to bring the most attractive solution to workgroups and telecommuters," said Anil Uberoi, director of Netopia Product Marketing.

New Feature Highlights

Calling Number Authentication (CNA) - Security Benefits: This feature works in conjunction with existing PAP and CHAP authentication to ensure that an incoming call originates from a known ISDN line at a particular location for increased security. When this capability is enabled, the Netopia Internet Router rejects an incoming call if the caller's number doesn't match the "Calling Number" field in Netopia's "Connection Profile."

ISP Service Benefits: CNA allows ISPs to expand their service offerings to provide end users and companies with a low-cost virtual presence on the World Wide Web via on-demand web sites. In response to a signal from the ISP, the customer's Netopia automatically establishes an Internet connection via the CNA "call-back" feature when someone on the Internet wants to access the Netopia customer's Web site.

End-user Cost and Service Benefits: Full-time Web site hosting is now possible for Netopia customers at "on-demand" prices.

IPX Routing - As a standard feature in all of the Netopia routers, the dual support of IP and IPX routing enables customers to use the Netopia router for both IP protocol traffic (e.g. for Internet access) and IPX protocol traffic (for LAN-to-LAN routing or corporate telecommuter access) over ISDN. To further lower remote LAN access costs, Farallon has incorporated comprehensive IPX spoofing support so that the ISDN connection can be terminated, while the router continues to "spoof" the remote IPX server to the local client to "maintain" the connection.

Data-Over-Voice (DOV) - This feature permits data calls to be placed or answered using ISDN speech grade capabilities, instead of circuit-switched-data grade capabilities. In many regions, this innovative and unique feature will allow Netopia customers to avoid paying per minute ISDN charges. Oftentimes, speech calls within the same branch/central office are free.

Other Features

In addition to the new features, the Netopia Internet Routers are equipped with an AUI and 10Base-T Ethernet port, TCP/IP, an ISDN "U" interface, and a LocalTalk port on Model 440. All router models include Multilink PPP and 4:1 Stacker LZS compression for performance up to 512 Kbps. Further, the Netopia routers have the most versatile remote management/configuration with TFTP, XMODEM, and complete SNMP support as well as extensive security including pre-defined IP firewall filter, callback, PAP and CHAP.

Unique features include automated TCP/IP set up and administration with DHCP and MacIP server, "quick start" configuration utility, bundled Internet Starter Kit of leading web browsers and IP stacks, a PC Card (PCMCIA) slot for remote analog dial-in support and configuration, three months of free Internet service from PSINet, and optional Up & Running, Guaranteed! support program with two free licenses of Timbuktu Pro collaboration software. -0-

               New Cost-Saving and Security Features

Netopia            Model  Number   IPX    Data   Calling        Price
Workgroup                        Routing  Over   Number          (a)
Solutions                                 Voice  Authentication
--------------------------------------------------------------------
Netopia Internet
 Router             630     5       Y       Y        Y          $ 749
Netopia Internet
 Router             640  no limit   Y       Y        Y          $ 995
Netopia Internet
 Router             440  no limit   Y       Y        Y          $1195

(a) Based on U.S. estimated street prices.-0- Up & Running, Guaranteed!

Farallon's first-of-its-kind Internet support program, Up & Running, Guaranteed!, is offered as an option to all North American Netopia workgroup solution customers at a price of $499 and to all Netopia ISDN modem customers for $99. Through the program, customers will be guaranteed end-to-end Internet connection services, from ordering the ISDN line, to connecting to an Internet service provider and configuring the Netopia router or ISDN modem - Farallon handles it all. Included in the workgroup option is a 19.2Kbps PC Card analog modem to allow Farallon to remotely configure and support the Netopia routers even prior to the ISDN line being installed. It also includes a two-node license of its popular Timbuktu Pro software.

Founded in 1986, Farallon Communications, Inc. develops, markets and supports complete, easy-to-use, plug-and-play Internet connectivity and networking solutions and real-time collaboration software. The company's products are designed to increase the productivity and efficiency of Internet, Intranet and LAN users and to target small businesses, geographically dispersed facilities of large enterprises, home offices, mobile users, schools and other small organizations 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.

This release contains forward-looking statements which involve risks and uncertainties. The company's actual results could differ materially from the results discussed herein. Factors that could cause or contribute to such differences include, but are not limited to, those discussed from time to time in the company's public reports filed with the Securities and Exchange Commission, as well as those discussed in "Risk Factors" included in the company's Registration Statement on Form S-1 as declared effective by the Securities and Exchange Commission on June 12, 1996 (Reg. No. 333-3868).

-0-

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

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