TTNS Teams with StrataCom to Deliver High-Performance Access to the Information Superhighway; Taiwanese Service Provider Chooses StrataCom's ATM Network Backbone Switches for Internet and Carrier Services.

SAN JOSE, Calif.--(BUSINESS WIRE)--June 4, 1996--StrataCom, the world's leading provider of cell-based ATM wide area network switches, today announced that Taiwan Telecommunications Network Services (TTNS), Taiwan's second largest carrier and the country's largest Value Added Network (VAN) provider, has chosen its cell-based ATM switches to form the backbone of the nation's first carrier ATM network. Since the deployment of the StrataCom ATM solution, TTNS has seen transmission cost savings of nearly 30% over their previous Time Division Multiplexing (TDM) solution, and several orders of magnitude increase in node reliability.

Deployment of four StrataCom IGX cell-based ATM switches in TTNS' Generation Two network is underway in Taipei, Taoyuan, Taichung and Kaohsuing, replacing the original backbone of TDM switches which will be redeployed as backbone feeder nodes. During the next three years, TTNS plans to expand the ATM network throughout Taiwan with the addition of StrataCom's BPX/AXIS ATM switches, which will be able to increase backbone speeds to 155 Mbps (OC-3) and 622 Mbps (OC-12).

ATM/ INTERNET ROLLOUT

With StrataCom's standards-based 1.2 gigabit ATM switches, TTNS will offer 45 Mbps (E3/T3) ATM transport services to approximately 6,000 corporate and individual customers throughout Taiwan. Services offered over the ATM platform include frame relay, ISDN access, Virtual Private Network (VPN), X.25/SNA, LAN-to-LAN connection, videoconferencing and ATM-ready public network services. In addition, TTNS provides fast, dependable Internet transport services to more than 2,000 dial-up and 50 leased line customers.

ATM SOLVES FOUR GROWING PROBLEMS FOR INTERNET SERVICE PROVIDERS

Lien Shan Hsu, vice president of network services for TTNS, noted that the implementation of ATM in the Internet's backbone will reduce four key problems for Internet service providers: scaleability, congestion control and avoidance, quality of service, performance and reliability.

"Traffic management is critical when using ATM to carry IP traffic because retransmission of IP packets causes timing delays that can dramatically decrease performance," said Hsu. According to Hsu, the implementation of StrataCom's IGX has enabled TTNS to connect a much larger number of customers without impacting performance while reducing cost and complexity.

"TTNS's decision to build a high-speed Internet infrastructure based on ATM, along with Pacific Bell's and CompuServe's recent integration of ATM within their networks, clearly signals a strong movement toward a new Internet infrastructure," said Alex Mendez, vice president of marketing for StrataCom. "ATM is the best way to aggregate large volumes of low-speed multi-service traffic, much of which is very sensitive to network delays. We believe that this same model will drive the replacement of TDM infrastructures with ATM solutions in the wide-area across many industries for the foreseeable future."

THE BASEBALL CLUB

One of TTNS' customers, The Baseball Club, a professional baseball association located in Taipei, currently subscribes to a 64kbps leased line connection to the TTNS Internet network. The Club's World Wide Web Server and database are accessible to fans who can find out more about key players, exchange baseball player cards, and examine game reports and statistics "on line."

Taiwan Telecommunications Network Services

With US$18 million in 1995 revenues and US$25 million projected for 1996, TTNS is Taiwan's largest VAN and second largest carrier with over 200 employees. TTNS' ATM network is being supplied and supported by Ringline, one of StrataCom's distributors in Taiwan.

StrataCom

StrataCom, Inc., (NASD:STRM), based in San Jose, California, USA, develops, delivers and supports FastPacket networking systems for multiband ATM applications in private wide area networks and public carrier service offerings, such as frame relay, ATM and Internet. StrataCom's family of products, including IPX, IGX, BPX, AXIS, FastPAD, and EdgeConnect, is used to integrate and transport a wide variety of corporate information, including voice, data, video, LANs, image and multimedia traffic in narrowband to broadband ATM network applications. Visit StrataCom's home page at http://www.stratacom.com. -0-

Note to Editors: IPX, FastPacket, and StrataCom are registered trademarks and BPX, AXIS, FastPAD, EdgeConnect and IGX are trademarks of StrataCom, Inc. "Legal Note:" The forward-looking statements in this release should be read together with the cautionary material entitled "Factors Affecting Future Results" in StrataCom's 10K and 10Q reports, available from StrataCom, including but not limited to predictability of timely completion of product development.

CONTACT: StrataCom

Clare Whitecross, 408/882-2957

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or

Charles Sommerhauser, 408/882-2401

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