MadgeOne Technical Backgrounder.

SAN JOSE, Calif.--(BUSINESS WIRE)--July 22, 1996--Overview of MadgeOne(TM)

MadgeOne is a new network architecture designed to provide scaleable, high performance, cost-optimized support for all existing data applications, together with the delivery of sophisticated new network services to the desktop and across the WAN. These services will be developed to support the allocation of network resources to data applications to guarantee performance, the use of real-time multimedia conferencing applications and the integration of voice telephony over a common LAN/WAN infrastructure.

At the core of the MadgeOne model is the ATM backbone. Feeding into the ATM backbone are Ethernet and Token Ring access switches, and desktop ATM switches. Servers may be connected locally to Ethernet, Token Ring or ATM workgroups, or they may be grouped centrally in "server farms," which may be attached directly to the ATM backbone.

To support data communications within the ATM network, MadgeOne provides additional services such as LAN Emulation (LANE). MadgeOne is also being developed to provide routing services, including routing between emulated LANs, as well as support for MPOA (Multi-Protocol Over ATM). Another key service, call control, is planned to be included to manage voice and video calls in the network.

The MadgeOne architecture extends integrated data, voice and video transport over ATM from the LAN into the WAN, using either private lines or carrier services. In addition, MadgeOne will offer a wide range of connectivity options to non-ATM services, including voice connectivity to legacy PBXs and public telephone networks, video connectivity to ISDN-based videoconferencing systems and networks, and data connectivity to Frame Relay, Internet and dial up data services.

MadgeOne: Meeting the Technical Requirements for Multiservice Networking

The MadgeOne architecture will fulfill three key technical requirements for multiservice networking: integrating legacy desktops and applications with an ATM-based infrastructure; switching and call control for voice and video transmission; and connectivity to legacy communications systems and networks for data, video and voice.

-- Integrating legacy desktops and applications with ATM -- MadgeOne provides a scaleable, high performance cost-optimized backbone solution supporting legacy Ethernet and Token Ring desktops -- which is totally transparent to existing data applications. Furthermore, MadgeOne is envisioned to incorporate a new solution for the integration of real-time traffic called "Cell-in-Frame," a technique for carrying ATM cells as the payload of Ethernet or Token Ring frames. This allows an Ethernet or Token Ring connection to an ATM network to be treated as an extension of the ATM network itself, with Ethernet or Token Ring acting as another kind of physical transport layer for ATM cells.

-- Switching and call control -- In the multiservice scenario, the ATM LAN can absorb the internal voice switching functions previously handled by a PBX. To address sophisticated call control functions now handled by the PBX -- such as determining which connections are made, as well as customized functions such as call-forwarding -- MadgeOne employs a combination of centralized and distributed call control by means of a client/server architecture with call control intelligence in each PC. The server directs setting up the calls, not by controlling the ATM switches in the network, but by telling the end-stations which connections to establish.

-- Connectivity with legacy communications systems -- To complete the picture, MadgeOne provides for switched data, voice and video connectivity with existing PBX and videoconferencing systems, as well as external services such as public switched telephone networks, ISDN networks, Frame Relay and the Internet.

MadgeOne Timeline: Product Deliverables

-- ATM Access Switching -- Now Shipping ATM Access Switching includes switched Ethernet and Token Ring connectivity with ATM backbones, supported by ATM Forum standard LAN Emulation.

-- ATM Desktop Solutions -- Now Shipping ATM Desktop Solutions include 25 Mbps ATM switches, together with a range of 25 Mbps and 155 Mbps ATM Network Interface Cards featuring ATM Forum standard Ethernet and Token Ring LAN Emulation driver software.

-- ATM Backbone Switching -- Now Shipping ATM Backbone Switching includes flexible, fault tolerant 155 Mbps ATM switching, with built-in ATM Forum standard LAN Emulation services.

-- Quality of Service support -- First Half, 1997 Quality of Service support will include Quality of Service support for Ethernet and Token Ring LANE, and native ATM support at the desktop via Winsock 2.0

-- Call control services -- First Half, 1997 Call control services will include a call control application, middleware to interface the call control application to the ATM network and desktop call control application software

-- Routing services -- First Half, 1997 Routing Services will include layer 3 switching support in ATM backbone switches, followed later by MPOA (Multi-Protocol Over ATM) support in edge switches and ATM drivers

-- Network management extensions -- First Half, 1997 Network management extensions including support for AMON (ATM Monitoring), topology management, virtual circuit tracing, and VLAN/ELAN management

-- WAN services access -- Second Half, 1997 WAN services access includes a LAN video gateway and an ATM LAN interface for the WAN AccessSwitch, followed later by an integrated router module for the WAN AccessSwitch

-- Cell-in-Frame support -- First Half, 1998 Cell-in-frame support will include CIF software for Ethernet and Token Ring desktops, and CIF support in Ethernet and Token Ring ATM access switches

In accordance with the new Private Securities Litigation Reform Act of 1995, Madge wishes to point out that the foregoing product and capability targets and other statements, except for any historical information, contained in this document, may be forward-looking statements that do not give full weight to all the potential risks including, but not limited to, the difficulty in predicting schedules for and developing high-technology products, product demand and market acceptance, rapid changes in technology, the impact of competitive products and the integration of acquired companies. Actual results may differ markedly. The company assumes no obligation to update this information. For more details, please refer to Madge's SEC filings, including Madge's most recent Annual Report on Form 20F. -0-

All of the press materials including a comprehensive white paper about MadgeOne can be located on Madge's web page http://www.madge.com.

Madge, the Madge Logo and MadgeOne 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

Bill Jeppesen, 408/952-9014

[e-mail]

Wendy Grover, 408/952-9026

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