Madge.connect Acquires Olicom A/S Token Ring Business; Madge.connect Strengthens Its Market Position and Accelerates Development of Next Generation Token Ring.WEXHAM SPRINGS, United Kingdom--(BUSINESS WIRE)--Aug. 31, 1999-- Madge.connect, part of Madge Networks Madge Networks NV. founded by Robert Madge and best known for its work with Token Ring, was a global leader and pioneer of high speed networking solutions in the mid 1990s, and also made significant contributions to technologies such as Asynchronous Transfer Mode (ATM) and Ethernet. N.V. (NASDAQ/NM:MADGF), a global network solutions provider, has acquired the Token Ring A local area network (LAN) access method developed by IBM. Conforming to the IEEE 802.5 standard, Token Ring uses a token ring access method and connects up to 255 nodes in a star topology at 4, 16 or 100 Mbps. business of Olicom A/S (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :OLCMF), a leading supplier of fault tolerant The ability to continue non-stop when a hardware failure occurs. A fault-tolerant system is designed from the ground up for reliability by building multiples of all critical components, such as CPUs, memories, disks and power supplies into the same computer. enterprise networking The networking infrastructure in a large enterprise with multiple computer systems and networks of different types is extraordinarily complex. Due to the myriad of interfaces that are required, much of what goes on has little to do with the real data processing of the payroll and orders. solutions. The consideration for the sale consists of an up-front cash payment of US$15 million and additional cash payments over the next three years based on Madge's Token-Ring revenue performance. In addition Madge will purchase certain Olicom Token-Ring inventory in the quarters following the sale. Under the transaction Madge.connect acquires the intellectual property and the rights to manufacture, sell and develop all of Olicom's Token Ring product portfolio. The deal also includes Olicom's Token Ring customer base and some key Olicom employees. The acquisition enables Madge.connect to achieve significant economies of scale across its data networking products portfolio. The Olicom product portfolio will be integrated with Madge.connect's existing range of data networking products to provide customers with the most comprehensive range of Token Ring products. The deal places Madge.connect as a leader in a networking market segment worth US$1.4 billion, leaving the company well positioned to take advantage of the predicted strong growth in Token Ring switching(1). Focusing on the needs of 20 million Token Ring users worldwide, Madge.connect's strategy is to lead the development of next generation technology and to partner with customers to facilitate migration towards its IP-based networking solutions. The deal follows last week's announcement from Madge Networks N.V. that the company will be restructuring into separate legal entities - Madge.connect (a global network solutions provider) and Madge.web (a global managed network and hosting provider), with Madge Networks N.V. as the holding company. Mike Wilson Mike Wilson could refer to the following people:
"Madge excels in Token Ring because of the quality of our technology and customer support. We can now bring these advantages to the entire Olicom customer base and provide support for migration to IP-based solutions." About Madge Networks N.V. Founded in 1986, Madge Networks (NASDAQ/NM:MADGF) is a global managed network services and product solutions provider specializing in mission-critical enterprise needs. The company's goal is to optimize the implementation of enterprises' voice, video and data networks with the ultimate aim of converging all networking needs on Internet Protocol (IP) solutions. The company's main business centers are at Wexham Springs, United Kingdom and Eatontown, New Jersey Eatontown is a Borough in Monmouth County, New Jersey, United States. As of the United States 2000 Census, the borough population was 14,008. What is now Eatontown was originally incorporated as Eatontown Township . Madge Networks N.V., a company organized under the laws of the Netherlands, is the parent company of Madge. Information about Madge's complete range of products and services can be accessed on the World Wide Web at www.madge.com Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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., changing technologies, difficulties in new product development and introduction, competition, global economic conditions, and changed resource allocation resource allocation Managed care The constellation of activities and decisions which form the basis for prioritizing health care needs resulting from these and other factors). Forward-looking statements in this press release include statements that refer to economies of scale; incremental sales opportunities, leading position, 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 on Form 20F and Form 6-K. Madge and the Madge logo are trademarks, and in some jurisdictions may be registered trademarks of Madge Networks or its affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. . (1) Dell'Oro July 1999 Switching Forecast predicts 1 million switched Token Ring ports by year 2000 |
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