Madge Networks Hosts Key High Speed Token Ring Alliance Meeting; Token Ring Switch and Adapter Leader Drives Definition of New HSTR Draft Standard; Proposal on Fast Track to Meet Market Demand.

WEXHAM SPRINGS, United Kingdom--(BUSINESS WIRE)--Oct. 30, 1997-- Moving to accelerate the definition of the High Speed Token Ring (HSTR) standard, Madge Networks, a worldwide provider of networking solutions, is hosting a key meeting of the HSTR Alliance's technical forum this Thursday and Friday.

The forum plans to use the meeting to evolve the first working draft of the HSTR standard, which it will then present to the IEEE 802.5 (Token Ring) committee for peer review and preliminary approval at the IEEE's regularly scheduled meeting November 10.

HSTR Alliance technical forum members from participating Token Ring vendors -- including Bay Networks, Cisco Systems, IBM, Microvitec/Proteon, Olicom and Xylan, as well as Madge -- will work to hammer out a set of specifications that vendors can use to develop HSTR-compliant technology demonstrations at NetWorld+Interop in Las Vegas next spring. The HSTR Alliance's nine-month timeline from initial proposal to standards approval represents the most ambitious schedule to date for a standard of this magnitude.

"The HSTR Alliance is committed to providing Token Ring users with the high-speed, scalable technologies and solutions that make Token Ring the best networking choice for the long term," said Simon Gawne, head of marketing and business management for Madge's Token Ring Solutions Division. "As a recognized leader in Token Ring innovation, Madge is proud to host this vital meeting. We hope to use our influence in the Token Ring community to fast-track the HSTR standard and we look forward to its rapid approval so that we can deliver proven products by next year."

About the High Speed Token Ring Alliance

HSTRA, which includes Bay Networks, Cabletron, Cisco Systems, University of New Hampshire (UNH), IBM, Olicom, 3Com and Xylan as well as Madge, was formed in August 1997. In initial meetings, the group committed to developing HSTR within the framework of the IEEE 802.5 committee, assuring that current Token Ring equipment will work with the new HSTR standards. The group has also resolved to define wire speeds that scale from 100 megabits per second (Mbps) to 1 Gigabit per second (Gbps) and has agreed on a timeline for technical meetings, standards ratification and product demonstrations. HSTRA members have also committed to submitting prototype products to UNH for independent pre-standards interoperability testing.

About Madge Networks

Founded in 1986, Madge Networks (NASDAQ:MADGF) is a worldwide supplier of advanced networking solutions. A manufacturer of award-winning adapter card, workgroup switching and backbone products, Madge has pioneered advances in Token Ring, Ethernet and ATM technologies. The company is recognized for innovations in ISDN video networking and Layer 3 switching, and is developing High Speed Token Ring and Gigabit Ethernet technology. Madge is committed to providing key components of converged networks -- networks which handle simultaneous data, video and voice traffic. Madge's main business centers are located in Wexham Springs, England; Eatontown, New Jersey; and Tel Aviv, Israel. The company serves its international customer base through a global network of distributors and resellers. Information about Madge's complete range of products and services can be accessed on the World Wide Web at http://www.madge.com .

Private Securities Litigation Reform Act Statement

Investors should take note that certain statements in this press release are forward-looking and 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, the challenge of managing expenses to changing revenue and changed priorities and resource allocation resulting from these and other factors). Forward-looking statements included in this press release include statements which refer to future standards, new product prototypes, future demonstrations, product plans and technology development and other statements which are not completely historical. These statements may differ materially from actual future actions, 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 20F and Form 6-K. -0-

Note to Editors: Madge and the Madge Logo 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: Eastwick Communications

Barbara Bates, +650/306-4195

[e-mail]

or

Madge Networks Investor Relations

Sandra Toms, +408/952-9419

[e-mail]