REPEAT/ Bates Worldwide Launches Gigabit Ethernet Headquarters Network Based on 3Com's CoreBuilder 9000 Enterprise Switches and Fast EtherLink NICs.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 27, 1999--

3Com(R) Systems Provide World-Leading Advertising Agency With 100

Megabits Per Second Desktop Connections for

Innovative Voice, Video and Data Services

3Com Corporation (Nasdaq:COMS) today announced that Bates Worldwide, one of the world's largest advertising and integrated marketing communications agencies, is standardizing a next generation Gigabit Ethernet network at its recently opened 200,000 sq. ft. Manhattan headquarters on 3Com's CoreBuilder(R) 9000 enterprise switches and supporting Ethernet systems. Powered by the redundant 3Com network, Bates is delivering 100 megabits per second (Mbps) desktop connections to 750 users. The network also allows Bates to distribute far-reaching voice, video and data applications to support the agency's continued growth, improve and expedite services to clients and encourage the use of technology to enhance employee productivity. Bates additionally plans to migrate its wide area network (WAN) within the U.S. to 3Com equipment.

In 1998, Bates USA, a division of Bates Worldwide, won $350 million in new billings, an increase of approximately 75 percent over billings in 1997 with major growth from new as well as existing clients. As part of its growth strategy, Bates USA has sought to increase its regional strength and expand client offerings through mergers and acquisitions, which in 1998 included full-service, integrated communications agencies in Houston and Atlanta. Last year, Bates, whose high profile clients include Wendy's International, Warner-Lambert, Hyundai, CVS/pharmacy and Estee Lauder, won numerous industry awards including Effies, Addys and the ARF David Ogilvy Research Award.

From client management to training to media analysis, Bates is enhancing its competitive advantage by applying network-based technology solutions to virtually every aspect of its business. Using AdPartner, a proprietary, browser-based application, Bates tracks all aspects of ad development, including creative development, budgeting, approvals and archiving. Functioning as a digital asset management solution, AdPartner gives users real-time access to finished video, broadcast and print ads, a capability that Bates has turned into a strategic asset by making the application available to clients who use it to review ads and projects currently under development as well as historical account activities. When used over its WAN, AdPartner facilitates collaboration among employees in Bates' widely-dispersed offices, making it possible, for example, for an art director in Los Angeles to participate in a project originating in Bates' New York headquarters.

Bates' 3Com network also enables the agency to support Web-based multicasts. Driven by a video-on-demand server from RMSI, the agency's video capabilities give employees desktop access to speeches made by the CEO and other executives, as well as training seminars on benefits options, 401K plans and new software solutions. Long-term, Bates is considering desktop videoconferencing for real-time employee-to-employee interactions worldwide.

In addition, the agency's 3Com-based intranet supports numerous browser-based information services including MediaLink, which delivers media-related news and information to users; a document management system, which provides users instant access to research documents, client backgrounders and Request for Proposals (RFPs); and numerous agency-wide bulletin boards. Bates also uses a network-based conference room scheduling application and Novell Groupwise email. The 3Com network also will support a new media information management system designed to help account managers, account planners and clients more effectively target ads and commercials.

"Bates has always viewed and applied technology as a strategic resource that optimizes our staff's creativity and account service," said Joe Murello, senior vice-president and director of information technology. "Using our 3Com network, we've gained the ability to deliver the network services we need at a minimum of 10 times the speed of our previous architecture and an infrastructure that should stand up for the next decade."

Architected for 21st Century Performance

Bates' decision to upgrade its network emanated from a decision by upper management to use technology to automate key business functions. Having used a shared Ethernet network at its previous corporate headquarters, the company wanted to harness a higher-speed architecture to run its mission-critical services. The growing agency's move to new, ultra-modern 7th Avenue facilities last March presented an ideal opportunity to create an environment that would optimize network performance.

After initially deciding to deploy high capacity Category 6 cabling designed to handle high-bandwidth applications, Bates wanted a new local area network (LAN) more closely aligned with its corporate objectives for speed and reliability. Bates chose Gigabit Ethernet because it provided a natural migration path from familiar Ethernet technology, and they evaluated solutions from leading vendors.

"We wanted a single box that could support significant port density and that would grow as our needs continue to expand and 3Com provides the highest performance and scalability," said Peter Dentico, Bates' senior technical consultant. "No other system we saw matched the CoreBuilder 9000 switch for port density or reliability. The enterprise switch enabled us to make every employee in our new office a power user with 100 megabit desktop connections. In addition, the CoreBuilder switch is in the beginning of its life cycle, which means it is expected to remain state-of-the-art technology for several years."

Completed this April, Bates' new network is based on a collapsed backbone comprised of two redundant, CoreBuilder 9000 enterprise switches. Using trunking capabilities within the switch, the full duplex systems communicate with one another at 8 Gigabits per second (Gbps) and distribute Fast Ethernet links to 40 Compaq Proliant servers running Novell and Microsoft Windows NT operating systems. The CoreBuilder 9000 systems utilize 13 of the switches' 16 slots, including 36 ports-per-slot, to deliver dual Gigabit Ethernet links to seven CoreBuilder 9000 switches located in wiring closets on the building's six floors. Operating at an aggregate speed of 4 Gbps, the wiring closet CoreBuilder 9000 switches deliver 100 Mbps connections to the desktop. A single CoreBuilder 9000 switch in each wiring closet gives Bates the room to cost-effectively grow their network to up to 468 nodes per floor in a single chassis. The agency also is using 3Com Fast EtherLink(R) 10/100 network interface cards (NICs) in its servers and desktop PCs.

Bates is managing its network using Transcend(R) Enterprise Manager network management applications, enabling the agency to configure, control and manage each LAN from a single desktop console. The 3Com software simplifies network management via a graphical interface for easier network configuration. The agency also plans to install Transcend Traffix(TM) Manager network management software, which by collecting and correlating data from the RMON probes, will give network administrators a global view of traffic for performance analysis and troubleshooting.

"Our network environment is truly a strategic asset," concluded Murello. "In addition to helping us manage our growth more effectively, its enhanced performance helps increase our overall productivity. It also enables us to provide our clients with the highest degree of service possible, at every level. Our technical infrastructure, with our 3Com network at its core, empowers our employees to do just this."

About Bates

Bates USA, the U.S.P. Agency, is the U.S. advertising agency of Bates Worldwide, which has 156 offices and 7000 employees in over 70 countries and billings of approximately US$ 7.7 billion (all figures include affiliates). Besides its New York headquarters, Bates USA has five other full service offices: Bates USA Midwest in Indianapolis, IN and Columbus, OH; Bates USA South in Miami; Bates USA West in Irvine, CA; and Bates USA Southwest in Houston, as well as four field service offices.

About 3Com Corporation

With over 300 million customers worldwide, 3Com Corporation connects more people to information in more ways than any other networking company. 3Com delivers innovative information access products and network system solutions to enterprises, small businesses, carriers and network service providers, PC OEMs and consumers. 3Com. More connected.(TM) For further information, visit 3Com's World Wide Web site at www.3com.com or the press site at www.3com.com/pressbox.

3Com, EtherLink, CoreBuilder and Transcend are registered trademarks and Traffix and More connected. are trademarks of 3Com Corporation. All other company and product names may be trademarks of their respective companies with which they are associated.