Madge Networks Continues Lead in European Token Ring Switching Market; Q2 1997 Dell'Oro Group Study Confirms Madge Market Share at 24 Percent; Company Leads European Market for Second Straight Quarter.

LONDON--(BUSINESS WIRE)--Aug. 19, 1997--According to the latest study of Token Ring switch deployment conducted by The Dell'Oro Group, Madge Networks (NASDAQ:MADGF), a worldwide provider of networking solutions, maintained its position as the number one vendor of Token Ring switching equipment in the European market.

With a 24 percent share of the market, Madge accounted for nearly one fourth of all switched Token Ring ports shipped in Europe during the second quarter of 1997, according to the study.

The Dell'Oro Group, an industry analysis firm based in Portola Valley, Calif., based its figures on the number of new Token Ring switching ports shipped in various regional markets around the world. Madge Token Ring switches -- the Smart Ringswitch(TM) and the Smart Ringswitch Plus -- accounted for 3,900 new Token Ring connections out of a total of 16,400 ports shipped in the European market during Q2 1997.

"By leveraging its reputation as a Token Ring innovator and continuing to refine its distribution strategy, Madge has made significant inroads against its competitors in the European Token Ring market," said Tam Dell'Oro, president of The Dell'Oro Group. "While many of the Token Ring leaders reported flat or declining port shipments, Madge's market share is holding steady."

"It's gratifying to see independent confirmation that our European Token Ring strategy is paying off in market share leadership," said David Ruby, Madge Networks vice president of sales for the Europe, Middle East and Africa (EMEA) region. "And with innovative products enhancing our Token Ring switching family, we'll continue to meet customer demand for increased Token Ring efficiency, coupled with reduced costs and complexity -- factors that have made Madge number one in the European market today."

About Madge Networks

Madge Networks (NASDAQ:MADGF) is a worldwide supplier of networking solutions for Token Ring, Ethernet, video networking and carrier ISDN customers. Madge is recognized for its customer support without limits and technology excellence. Madge is headquartered in London with major business centers located in New Jersey and Tel Aviv. It serves its multinational customer base in more than 20 countries world-wide.

Private Securities Litigation Reform Act Statement

Certain statements in this press release are forward looking and may not give full weight to all of the potential risks (e.g., rapid or unexpected changes in technologies, frequent new product introductions by competitors, the challenge of managing expenses to changing revenue and changed priorities and resource allocation resulting from these and other factors).

Forward-looking statements include statements which refer to Token Ring switch market share leadership, and other statements which are not completely historical. These statements may differ materially from actual future events or results. For more information on risks, please refer to Madge's SEC filings, including Madge's most recent SEC filings on Form 20F and Form 6 K. -0-

Note to Editors: Madge, the Madge Logo and Ringswitch are trademarks, and in some jurisdictions may be registered trademarks, of Madge Networks or its affiliated companies. Other trademarks appearing in this document are the property of their respective owners.

CONTACT: Madge Networks

Sandra Toms, 408/952-9419 (Investor Relations)

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Michael Adams, 541/928-3581

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