Xylan Wins Major Navy Order.

CALABASAS, Calif.--(BUSINESS WIRE)--Nov. 24, 1997--Xylan Corp. (Nasdaq:XYLN) Monday announced it has received the single largest order yet for equipment in support of the U.S. Navy's IT-21 initiative.

The Navy ordered $6.2 million of OmniSwitch ATM and LAN switches from EDS' PC-LAN+ contract, a primary contractor for IT-21 solutions.

When completed, the installation will be the largest IT-21 implementation to date, with both classified and unclassified networks running on six ships in the USS Kitty Hawk Battlegroup, six in the USS Enterprise Battlegroup, and two command ships. On aircraft carriers, the Navy's largest ships, the networks will support up to 2,100 users.

Installation of the Xylan equipment is planned for the first quarter of 1998, with full deployment planned for mid-year.

"IT-21 creates an integrated network on each ship to replace the very expensive system of multiple, separate networks that existed before," said Capt. Mark Lenci, IT-21 project officer for the Space and Naval Warfare Command (SPAWAR). "We selected ATM because we wanted the most flexible technology available for running voice, video and data applications on a single integrated backbone."

This is one of the most technologically advanced IT-21 installations, using high-speed OC-12 (622 Mbps) ATM in the backbone, and to connect edge switches and servers to the backbone. The networks include:

-- integration of switched Ethernet, switched Fast Ethernet, and

switched OC-12 and OC-3c (155 Mbps) ATM

-- PNNI (Private Network to Network Interface) as the high-speed

routing protocol for ATM

-- full mobility for all workstations, without network or end

station reconfiguration, using IP subnet-based virtual LANs

and ATM LAN Emulation

-- high-speed routing between subnetworks using Xylan's

integrated Hardware Routing Engine layer-three switch

"When we evaluated products, the OmniSwitch competed very strongly in ATM and LAN integration, product line scalability, extensive and capable VLANs, and powerful GUI network management tools," said Chris Hansen, IT-21 system engineer/network manager who is responsible for the evaluation, design, test and installation of IT-21 afloat networks. "At the time of the evaluation, there were no other vendors who had all of these capabilities in a single product or product line."

Brett Michaels, Xylan's director of federal sales, noted that this installation is characteristic of the U.S. federal government's approach to networking. "The Navy is moving aggressively to take advantage of advanced switching technology to support the new applications mandated by their missions. They need end-to-end switched solutions, but they're also insisting on getting the best technology -- and they want it to be fully integrated."

The ships that will be outfitted with Xylan equipment include: USS Kitty Hawk (aircraft carrier, CV-63); USS Enterprise (aircraft carrier, CVN-65); USS Nassau (large amphibious ship, LHA-4); USS La Salle (command ship, AGF-3); USS Mobile Bay (cruiser, CG-53); USS Nicholson (destroyer, DD-982); USS Nashville (amphibious ship, LPD-13); and USS Pensacola (amphibious ship, LSD-38).

IT-21 Solution Leader

This order closely follows several other Xylan IT-21 installations in the past several months. Currently, the OmniSwitch is the only switch system being deployed as part of IT-21 for shipboard systems. These installations include: the USS Lincoln (aircraft carrier), the USS Eisenhower (aircraft carrier), the USS Truman (aircraft carrier) and the USS Essex (amphibious ship). In addition to these large ships, IT-21 networks have been installed on 13 smaller ships.

To support the IT-21 effort, Xylan switches are also being installed at labs in San Diego; Norfolk, Va.; Charleston, N.C.; and Patuxent River, Md.

In addition to the shipboard systems and supporting labs, several innovative shore commands have ordered IT-21 compliant OmniSwitch systems, including FTSCLANT, SUPSHIP, NAVOCEANO, NCTAMSLANT, NSWC Philadelphia, NSWC Port Hueneme and the SPAWAR Systems Center in Charleston.

About Xylan

Xylan delivers a complete range of high-bandwidth campus switching systems. Each individual technology is powerful, and all are integrated together in a range of product platforms. Capabilities available now include:

-- LAN switching for Ethernet, Token Ring, Fast Ethernet and

FDDI, including ATM uplinks and any-to-any translation

-- 13.2 Gbps ATM switching, using advanced buffer management and

broad support for quality of service types, including powerful

ATM LAN Emulation and PNNI, and supporting integrated data,

video and voice

-- hardware-based layer-three switching for both IP and IPX,

including RIP, OSPF, RIPII and IP multicast

-- 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,

networkwide traffic patterns and hardware/software

configuration

This news release may contain forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by Xylan with the SEC, including the company's most recent report on Form 10-K and 10-Q, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements.

Xylan, OmniSwitch and PizzaSwitch are trademarks of Xylan Corp. registered in the U.S. Patent and Trademark Office.

CONTACT: Xylan Corp., Calabasas

David Rodewald, 818/878-4976

[e-mail]

Douglas Hill, 818/878-4518

[e-mail]

818/880-3505 (fax)

www.xylan.com

or

Tony Fisch Consulting

Tony Fisch, 818/501-6608

818/501-1303 (fax)