Madge Alliance Partners Program-at-a-Glance.

SAN JOSE, Calif.--(BUSINESS WIRE)--March 24, 1997--Moving to solidify its decade long history with the channel, Madge Networks launched a two-tiered distribution program in 1996 and is modifying and expanding that program today. The previous channel model stratified VARs and resellers along product lines and concentrated most heavily on moving Token Ring adapter cards through indirect sales, while maintaining a significant direct sales force to handle its systems products.

Under the new Madge Alliance Partners program (MAP), the entire direct sales force has been redeployed to serve channel partners. The complete Madge product portfolio -- including advanced systems products like the WAN Access Switch, LAN Switch and ATM switches -- will be available to all members of the channel: Distributors and resellers, direct value added resellers (DVARs), systems integrators and telecommunications companies.

Madge is taking these steps for several business reasons. First, it's not economically feasible to hire adequate sales personnel to address all current and potential markets. The distribution model effectively deputizes the vast VAR and reseller community, trains them in specific products, partners with them to serve new and existing accounts, and provides a level of market coverage not possible with a direct sales force. In addition, customers have developed trusted, long-standing relationships with VARs and systems integrators and rely on them to know their networking environment, understand their business issues and help them tailor their information systems accordingly. Finally, the high end of the networking channel is mature, highly skilled and technically capable. This program leverages the large channel already in existence and uses them to reach customers on a far wider basis.

Channel Program Structure

Madge's MAP program employs the following partnerships to create a streamlined, two-tier sales model capable of meeting the needs of customers of virtually any size or networking complexity.

- Distribution and resellers -- Master distributors Ingram Micro and Tech Data will act as the main conduits for Madge products into the rest of the channel. In addition, partners such as Vanstar and Entex, as well as some resellers, will continue to specialize in selling Madge Token Ring interface cards and desktop products. This latter channel, comprising some 1,000 outlets, gives Madge extensive market coverage. VARs, distributors and resellers who buy through distribution are referred to as "Silver level."

- DVARs -- Direct value added resellers have the choice of purchasing Madge product from distribution or directly from Madge. DVARs have extensive technical expertise in high-end vertical market applications, including imaging, videoconferencing, multimedia, pre-press and publishing and ISDN. There are now nearly 130 DVARs under Madge contract, up 40 percent since January 1997.

- DVARs must meet the MAP program's highest technical proficiency and sales volume standards. They are required to generate annual sales of more than $500,000. They must also have on staff one systems engineer for every three sales people and must demonstrate expertise in enterprise networking. DVARs comprise the "Gold level" of Madge's MAP program.

- Telcos and Systems Integrators -- Madge is building partnerships with telecommunications companies and large-scale systems integrators to target enterprise environments where technologies like ATM and WAN access are critical. Telecommunications companies currently working with Madge include MCI, Mitel and Sprint.

- G.E.M.s -- These channel partners target the government, education and medical markets exclusively. They enable Madge to focus directly on this huge market and benefit from aggressive pricing based on volume commitments. -0-

Note to Editors: Please see related press release for further information.

CONTACT: Madge Networks, San Jose

Wendy Grover, 408/952-9026

[e-mail]