Olicom Announces Low-Cost Token-Ring Switch for Dedicated Desktop Switching; Strengthens ClearStep Migration Strategy.

DALLAS--(BUSINESS WIRE)--Jan. 27, 1998--

CrossFire 8601 Delivers Unprecedented Low Price for Token-Ring

Switching; Dramatically Reduces "Total Cost of Ownership" of

Token-Ring Networks

Olicom (NASDAQ:OLCMF), a leading global supplier of high-performance networking solutions, today announced a new low-cost Token-Ring switch specifically designed for dedicated switch connections to the desktop, enabling a boost in throughput up to 32 Mbps for Token-Ring desktops and file servers.

Olicom's new CrossFire(TM) 8601 Token-Ring Desktop Switch, with an extremely low price point of $275 per port, is the industry's first Token-Ring switch designed specifically for dedicated desktop connectivity. The CrossFire 8601 provides an immediate and extremely cost-effective performance upgrade for existing Token-Ring desktops and servers, with minimal risk and minimal disruption to the network.

The new CrossFire 8601, built around the same advanced Token-Ring switch technology as Olicom's industry-leading CrossFire 8600 Token-Ring Switch, plays a vital role in Olicom's ClearStep(TM) migration strategy (also announced today; see separate release). The ClearStep strategy is designed to extend the strategic value of Token-Ring networks by providing performance upgrades that leverage existing investments in Token-Ring hardware.

"Low-cost desktop switching is crucial to the cost-effective and intelligent migration of Token-Ring enterprises," said Jorgen Hog, vice president, network products for Olicom. "Providing 32 megabits of throughput to each desktop virtually guarantees the long-term productive life of existing Token-Ring desktop hardware. This kind of investment protection is central to our ClearStep strategy as we address the growing need for bandwidth among our Token-Ring customers."

Like the CrossFire 8600, the CrossFire 8601 utilizes the first ASIC in the industry designed specifically for Token-Ring switching, resulting in a level of performance, functionality and integration of features unsurpassed in the industry.

Whereas Olicom's CrossFire 8600, with wire-speed uplinks to the ATM backbone, addresses the need for LAN segmentation in the workgroup and backbone, the CrossFire 8601 is meant to replace existing Token-Ring hubs. In fact, the CrossFire 8601 was physically designed to replace IBM compatible CAU/LAMs within the existing wiring-closet, making it a true "plug-and-play" solution for Token-Ring networks.

Up to eight CrossFire 8601s and one or more CrossFire 8600s can be combined together in a single stack for considerable scaleability and flexibility. The CrossFire 8601 is optimally deployed in a stack of switches that includes at least one CrossFire 8600, thereby enabling a direct uplink to the ATM backbone. Together, the CrossFire 8600 and the CrossFire 8601 provide the most comprehensive and cost-effective switching solution for Token-Ring enterprises.

Desktop Switching in the ClearStep Strategy

Olicom's ClearStep strategy is a comprehensive plan for ensuring the long-term strategic value and productivity of the enterprise Token-Ring network. The first strategy designed specifically to address the needs of enterprises with Token-Ring networks, ClearStep ensures the most cost-effective and intelligent upgrade path with a comprehensive and flexible array of performance upgrade options. This complete range of options, including Switched Token-Ring, High Speed Token-Ring, Fast Ethernet and ATM, is designed to accommodate the strategic direction of any Token-Ring network.

Providing Token-Ring enterprises with a cost structure that enables them to install dedicated switch connections to individual desktops is central to Olicom's effort to extend the value of their Token-Ring customers' existing installed hardware. Desktop switching provides a boost in bandwidth up to 16 Mbps, and even 32 Mbps in full duplex mode, to each desktop, with no change to the surrounding infrastructure (network interface cards, cabling, etc.).

Additional Features of the CrossFire 8601

-- Performance - 1.624 million packets per second (1,624 Kpps) and an internal latency as low as 23 microseconds.

-- Port density - 20 ports in a single switch.

-- Scaleability - up to eight CrossFire 8601 switches can be stacked to supply up to 160 desktop connections; the CrossFire 8601 has been designed to be optimally deployed in stack with one or more CrossFire 8600 switches for high-speed backbone connectivity.

-- Switching mode support - supports Cut-Through, Store and Forward, and Adaptive Cut-Through switching modes, configurable on a per-port basis.

-- Full bridging mode support - the CrossFire 8601 provides plug-and-play installation with native support for all bridging modes (Transparent Bridging, Source Route Bridging, Source Route Switching, and Source Route Transparent Bridging), necessary to accommodate all possible installation requirements; the CrossFire 8601 and the CrossFire 8600 are among the first Token-Ring switches in the industry to provide comprehensive bridging mode support.

-- Full-Duplex support - the CrossFire 8601 can operate in full-duplex mode on any or all of its ports, providing Dedicated Token-Ring (DTR) connections (32 Mbps) to each desktop.

-- VLAN support - provides VLAN and filtering support for optimized network performance, including security and broadcast control; supports up to 63 VLANs in a single stack.

-- Advanced Network Management - the CrossFire 8601 is integrated into Olicom's industry-leading ClearSight(TM) network management system and also supports SNMP and RMON for integration into other management systems.

Pricing and Availability

Olicom's CrossFire 8601 Token-Ring Desktop Switch has a suggested list price of $5,500, and will be widely available in March 1998.

Olicom Background

Olicom, a leading global supplier of high-performance data networking solutions, designs, develops, manufactures, and markets its products for large, geographically dispersed enterprises. Olicom specializes in providing end-to-end connectivity solutions, advanced technical support services and ClearStep evolution strategies for networks in transition.

The Company's products are distributed worldwide by a network of strategic partners and resellers. More information on Olicom is available from the company's SEC filings or by contacting the company directly. See Olicom news, product, and service information on its web site at http://www.olicom.com.

This news release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ from predicted results. Further information on factors that could affect the company's results are detailed from time to time in Olicom's filings with the Securities and Exchange Commission. -0-

Note to Editors: Olicom is a registered trademark, and CrossFire, ClearSight and ClearStep are trademarks of Olicom A/S. All other brand and product names are registered trademarks of their respective holders.

CONTACT: Olicom, Inc.

Diane Weldin, 972/516-4698

[e-mail]

or

Stapleton Communications (Investor Relations Contact)

Kristine Mozes, 650/470-0200

[e-mail]