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Larscom's T3Clear Data Access Module Successfully Completes Compliance Testing for CE Marking; T3Clear Provides a DS3 "Fat Pipe" for International High Bandwidth Applications.

SANTA CLARA, Calif.--(BUSINESS WIRE)--July 29, 1997--Larscom Incorporated today announced that it has successfully completed testing and is compliant with the European Telecom Directive product standards, called "CE Marking," for its Orion 4000 T3Clear data access module.

The T3Clear module is currently the only WAN access solution on the market that can transport data, voice and ATM over a single clear channel DS3 circuit. Obtaining the CE Mark is a mandatory requirement for this type of product to be sold into 15 European countries without any further in-country testing.

"While it is standard procedure to pursue the CE mark for E1-based products, until recently there has been little need for CE marking on DS1 and DS3 offerings, as they are infrequently used in Europe," stated Maurice Levitt, Product Homologation Manager for Larscom.

"Over the past several months, however, we've learned that a number of our customers either are considering deploying or have deployed DS3s in Europe and across the Atlantic, due to DS3 circuits' higher bandwidth, greater availability, and lower cost than alternative services. We aggressively pursued the CE mark for T3Clear so that we could meet those customers' requirements, and take advantage of a broader range of international opportunities."

With Larscom's Orion 4000 broadband access multiplexer and the T3Clear module, high speed router or video traffic, inverse multiplexed cellstreams from an ATM switch, and T1s or E1s from a PBX can be simultaneously combined into one DS3 circuit for cost-effective communications. The Orion 4000 platform, which has the capability of inverse multiplexing up to eight T1/E1 lines into one or two logical channels, received CE approval in 1996. Other Orion 4000 modules with CE approval include the IMUX/E1-A45 ATM inverse multiplexer, and IMUX/E1 NxE1 inverse multiplexer.

The CE Mark is a requirement for all telecommunications terminal equipment (TTE) products sold into the European Union (EU), effective January 1, 1996. CE marking confirms that a product has been tested and meets the essential requirements of the European Telecom Directive 91/263/EEC to market it throughout the EU. Countries covered are Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxemburg, Netherlands, Portugal, Spain, Sweden, and the United Kingdom.

To obtain additional product information, please visit the company's Web site at www.larscom.com . To arrange an interview, contact Michelle Solis at 408/988-6600 ext 274. For investor relations issues, contact Morgen-Walke Associates at 415/296-7383.

Larscom Incorporated (NASDAQ:LARS) is a leading provider of high speed wide area network (WAN) access equipment. Its customers include carriers, Internet service providers, corporate users, and government agencies worldwide. Its products cover a wide range of transmission rates and services including full and fractional T1, E1, NxT1, NxE1, and T3, as well as frame relay and ATM inverse multiplexing.

To help ensure optimum network performance, Larscom products feature advanced monitoring, diagnostic, and management functions, including SNMP. The company's headquarters are located at 4600 Patrick Henry Drive, Santa Clara, Calif. 95054.

Any forward looking statements in this news release are based on current expectations and beliefs and are subject to risks and uncertainties that could cause the actual results to differ materially. Factors that could cause actual results to differ materially include competitive products, dependence on recently introduced products and products under development, rapid technological change, as well as additional risk factors as discussed in the "Risk Factors" section of Larscom's prospectus, dated Dec. 18, 1996, and Larscom's quarterly reports filed with the U.S. Securities Exchange Commission (SEC).

CONTACT: Larscom Incorporated

Ursula G. Burger, 408/988-6600

email: burger@larscom.com

or

Sterling Communications Inc.

Paul Forecki, 206/265-3358

email: pforecki@sterlingpr.com
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Date:Jul 29, 1997
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