Olicom Doubles ATM Market Share; High-Performance NICs Move up 8 Points in One Quarter.

DALLAS--(BUSINESS WIRE)--June 8, 1999--

Olicom Inc. (Nasdaq/NMS: OLCMF), the leader in fault-tolerant enterprise networking solutions, Tuesday announced that it has doubled its share of the ATM (asynchronous transfer mode) network interface card market, with its RapidFire 6161 and 6162 NICs skyrocketing from 7% of the market in the fourth quarter of 1998, to 15% for the first quarter of 1999.

The rise in market share firmly places Olicom as the second-largest vendor of ATM NICs in the world. Olicom's impressive growth comes despite a recent study from the Cahners In-Stat market research firm, which revealed a first-quarter 1999 industry wide drop in worldwide NIC sales of 13%.

"We attribute this increase to the superior performance of the RapidFire 6161 and 6162, the first ATM NICs to support ATM's ABR class of service; and to their mission critical quality," said Jorgen Hog, Olicom Vice President of Product Marketing. "In addition, we attribute this success to our ClearServer(TM) technology." ClearServer, a load-sharing redundancy feature, allows up to four NICs to be installed in a server, and to appear as one fault-tolerant entity.

The Olicom NICs' superior performance has been benchmarked with nearly 20% better CPU utilization and throughput than the competition. While other ATM vendors do provide a redundancy feature for their NICs, Olicom is unique in that it automatically distributes the load between the redundant NICs, regardless of the network protocol. Unlike other adapters, which remain inactive when installed as a redundant NIC, ClearServer's "active redundancy" ensures that all adapters are active during normal operation. This dynamically boosts bandwidth, actively preventing traffic congestion before it can slow down network performance. The redundant adapters are transparent to the operating systems' network protocols -- so if an adapter does go down, the changeover to a secondary adapter is immediate and transparent to users.

"Olicom's failover mechanism ensures that in the event of failure, traffic will be diverted to the other redundant NIC in less than three seconds -- guaranteeing that no session loss will occur," said Hog. "The RapidFire 6161 and 6162 are ideal in mission-critical environments, where you can't afford for a single NIC to go down."

The Olicom 6161 and 6162 ATM adapters are among the industry's first to fully support the Available Bit Rate (ABR) traffic class, a key technology for preventing congestion and making optimal use of "extra" bandwidth while maintaining QoS guarantees for time-sensitive multimedia data.

About Olicom

Olicom, a leading global supplier of high-performance data networking solutions, designs, develops, manufactures, and markets its products for large, geographically dispersed enterprises. It specializes in providing campus network connectivity solutions, advanced technical support services and ClearStep(SM) 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.

Olicom and RapidFire are registered trademarks, ClearServer is a trademark, and ClearStep is a service mark of Olicom A/S. All other brand and product names are registered trademarks of their respective holders.

Except for historical information contained herein, the matters discussed in this news release may contain forward-looking statements, involving risks and uncertainties that may cause actual results to differ materially. Among the factors that could cause results to differ are uncertain market conditions, overall demand levels for networking solution products, the timely development of new products, intense competition in the networking industry and the Company's ability to execute strategies efficiently and effectively. Further information may be found in Olicom's periodic filings with the U.S. Securities and Exchange Commission (SEC), including the most recent reports on Form 20-F and 6-K, which identify important risk factors related to the Company's business that could cause actual results to materially differ from those contained in the forward-looking statements.