Xylan Second Quarter Results to be Below Expectations.

CALABASAS, Calif.--(BUSINESS WIRE)--June 10, 1997--Xylan Corporation (NASDAQ:XYLN) today announced that, based on current information, the Company believes that revenue and earnings per share for the second quarter ending June 30, 1997 may be lower than the first quarter of 1997, when the Company's revenues were $48.0 million and the earnings were $0.13 per share. The Company's revenue and earnings for the second quarter of 1996 were $28.2 million and $0.06 per share, respectively. The Company believes that its results for the second quarter will be adversely affected by factors which include, lower than expected orders from a large OEM customer, material availability for its ATM switch product, and lower than expected shipments of its new Ethernet/Fast Ethernet products.

Steve Kim, Xylan's President and Chief Executive Officer, said, "The anticipated second quarter results do not change our strategy or long-term outlook. Our new generation of Ethernet/Fast Ethernet ASIC technology is working, and we expect products using such technology to ship shortly. In addition, this new ASIC technology will be incorporated in a new line of low-cost switches with high-end features. We believe that these exciting new technologies will allow the Company to continue to be a technology leader in high-end switching."

This press release contains forward-looking statements involving risks and uncertainties which can cause actual results to differ materially. Among factors that could cause results to differ materially are final accounting results, product and material availability, sales by OEMs and other competitive conditions, including, new product announcements, technological changes and overall demand levels for networking solution products. Readers are referred to the documents filed by Xylan with the S.E.C., including the company's most recent reports on Form 10-K and 10-Q, which identify important risk factors related to the Company's business that could cause actual results to differ from those contained in the forward-looking statements.

About Xylan

In less than four years since its founding, Xylan Corporation has introduced a complete set of technologies for high-bandwidth campus switching systems. Each is powerful, and all are integrated into a single set of product platforms. Capabilities available now and in the next six months include:

-- LAN switching for Ethernet, Token Ring, Fast Ethernet, and FDDI including ATM uplinks and any-to-any translation

-- 13.2 Gbps ATM switching, with OC-3, OC-12, DS-3, E3, DS-1, E1 and 25M ports, using advanced buffer management

-- hardware-based layer-three switching for both IP and IPX, including RIP, OSPF, RIPII BGP4, and IP multicast

-- advanced upper-layer switching protocols, including PNNI, LAN Emulation, NHRP, and MPOA 

-- policy-based virtual LANs - the most complete in the networking industry

-- IP security firewall, tightly coupled with the switching fabric

-- compressed, high-speed frame relay for wide area access

-- graphical network management, with unique tools for managing VLAN policies and memberships, ATM virtual circuits, network-wide traffic patterns, and hardware/software configuration

CONTACT: Xylan Corporation, Calabasas

Dale Bartos, 818/878-4590

Fax: [phone]

[e-mail]

http://www.xylan.com