Madge Networks First Vendor to Pass Microsoft's New ATM LAN Emulation Compatibility Program for Windows NT 4.0; Program Assures Customers of ATM Interoperatibility.

SAN JOSE, Calif.--(BUSINESS WIRE)--Sept. 16, 1996--Madge Networks, a leading worldwide provider of end-to-end switched networking solutions, today announced it is providing the first ATM (asynchronous transfer mode) product fully tested for compatibility by Microsoft for use in Windows NT(TM) 4.0 environments.

Windows NT Server is rapidly becoming the application server of choice among many larger organizations, and ATM is emerging as the optimal delivery system for LAN-based telephony and videoconferencing. This program provides customers with an additional level of security in deploying Madge ATM products for use in business-critical Windows NT environments.

"Microsoft's compatibility program provides further evidence that ATM's time is here," said Cynthia Ringo, senior vice president of corporate development for Madge Networks. "We're pleased to have worked closely with Microsoft to help pioneer the industry's first ATM compatibility program and gratified that our ATM products performed so well during the testing process. Our work with Microsoft gives customers confidence that Madge ATM products will behave reliably within the Windows NT 4.0 environment."

"Microsoft is leading the way toward next-generation communications support within Windows by introducing this ATM LAN emulation compatibility testing program and by outlining its native ATM architectural support," said Mark Lee, product manager for telephony and networking at Microsoft Corp. "This testing program will increase customer confidence in ATM solutions, and will provide ATM vendors with valid performance benchmarks. We're pleased Madge Networks has met these requirements with its products."

The Texas Natural Resource Conservation Commission, a state regulatory agency, needed the high bandwidth and flexible quality of service of ATM to connect its six-building Austin headquarters. Madge Collage(TM) 740 ATM switches comprise the backbone. The agency also uses Madge Collage 540 ATM switches to connect its legacy Token Ring networks to the ATM backbone. About 250 desktop systems are equipped with Madge ATM25 workgroup adapters to give TNRCC engineers direct access to ATM for both application development and videoconferencing.

"Windows NT 4.0 is the agency's primary client/server development platform and interoperability between Madge ATM equipment and Windows NT 4.0 is critical," said Chris Frazier, senior infrastructure engineer at TNRCC. "We're using a multi-million dollar ICASE tool to build high-volume, client/server databases and we need the assurance that Madge ATM products and Microsoft software interoperate. This gives us confidence that the system will continue to work as designed and that we can move data between clients and servers in a timely manner throughout the development cycle."

Both 25 Mbps (megabit per second) workgroup adapters and 155 Mbps ATM backbone adapters, along with driver software, have been tested and approved by Microsoft. These drivers are shipping with Windows NT 4.0 (and are selectable at start-up and configuration.) This level of integration assures users of optimal ease of adapter installation and seamless compatibility between Madge ATM products and the latest version of the Windows NT Server operating system.

Microsoft labs have also certified Madge's ATM Forum-compliant LAN Emulation software for Ethernet, which allows workstations to communicate over an ATM backbone and gives ATM-attached PCs access to LAN-based applications. Madge Token Ring LAN Emulation software will be in the compatibility testing process in the near future.

Madge ATM Collage switches are used by Microsoft's certification lab part of its ATM test environment. Three Collage switches -- the 280, 540 and 740 models -- are currently in use to test ATM-compliant hardware and software. Madge has a history of supporting Microsoft platforms. Over the past seven years, this support has included:

-- the original Token Ring protocol stack for OS/2 LAN Manager in 1988 -- the first Token Ring adapter company to support Microsoft's

Miniport Plug and Play technologies -- the largest number of Microsoft-supported Token Ring adapters in

the industry -- a 1996 licensing agreement with Microsoft under which Microsoft

incorporates Madge's Token Ring driver code with the Windows NT

operating system

About Madge Networks

Madge Networks (NASDAQ:MADGF) is a leading worldwide supplier of end-to-end switched networking solutions for large enterprises, with a special focus on networks which will be able to support integrated data, voice and video.

The company, an originator of ATM, Ethernet, ISDN and Token Ring technology, offers a range of products from desktop connections through LAN and WAN switches, and enterprise network management software. Madge is recognized for its customer support without limits, technology excellence, and end-to-end networking expertise, and serves its multinational customer base in more than 20 countries worldwide from five major business centers located in Hong Kong, London, San Jose, Tel Aviv and Tokyo.

Private Securities Litigation Reform Act Statement

Statements in this press release which refer to future product availability, product features, compatibility and performance and other statements which are not completely historical are forward-looking statements that may not give full weight to all of the potential risks (e.g., the difficulty in predicting schedules for and the development of high-technology products, product demand and market acceptance, rapid changes in technology, and the impact of competitive products). These statements may differ materially from actual future events or results. For more information on risk factors, please refer to Madge's SEC filings, including Madge's most recent SEC filings on Form 6-K. -0-

Note to Editors: Madge, the Madge Logo and Collage 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. Microsoft and Windows NT are either trademarks or registered trademarks in the United States and/or other countries of Microsoft Corporation.

CONTACT: Madge Networks

Wendy Grover, 408/952-9026

[e-mail]

Stacy Biesen, 408/952-9437

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