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Cabletron Systems, On Behalf of Enterasys Networks, Acquires Indus River Networks.

Business/Technology Editors

ROCHESTER, N.H.--(BUSINESS WIRE)--Aug. 21, 2000

Acquisition Adds Next Generation VPN Technology to the Enterasys

Portfolio of Enterprise Networking Solutions

Cabletron Systems, on behalf of Enterasys Networks who is the only provider of total network solutions singularly focused on enterprise-class customers, today announced that it has reached a definitive agreement to acquire Indus River Networks. As a result of the acquisition, Enterasys will create a new generation of virtual private network (VPN) solutions based on Indus River's award-winning technology.

The acquisition of Indus River, headquartered in Acton, Massachusetts, expands the company's VPN solutions offerings in a market that analysts expect to reach $2.2 billion in 2002. Because Indus Rivers' RiverWorks(TM) product family is based on a flexible architecture that is easily extensible to support additional hardware and software capabilities, new RiverWorks-based VPN products from Enterasys will be introduced before the end of the year. The new products will contain architectural elements of the new, company-wide security framework. This will create the industry's first unified security solutions portfolio for enterprise network infrastructure.

In announcing the acquisition, Henry Fiallo, President of Enterasys, said, "We are pleased to be able to announce the addition of Indus River to the Enterasys Networks family. The VPN requirement of our customers is growing rapidly as the need for low cost, secure and flexible private networks become the foundation for e-business implementations. Indus River and their industry leading solutions provide Enterasys with excellent technology and products today, and a wealth of talent for our continued VPN developments in the future."

"Since 1996, we have been an innovator in VPN technology and a proven leader in deploying operational VPN solutions to corporate customers," said Per Suneby, co-founder and CEO of Indus River Networks. "That VPN market experience and expertise, coupled with Enterasys' complementary products and strong customer base, will create a robust virtual networking business with both technical and network solutions leadership."

Terms of the agreement include 4.1 million shares of Cabletron stock and Cabletron stock convertible into approximately 1% of Enterasys Networks fully diluted stock. When completed the combined value of the deal will total approximately $170M, based on the share price as of the close of the market on 8/18/00. Both companies' boards of directors have approved the acquisition, and the transaction is expected to close in the third Quarter of Enterasys Networks fiscal year 2001.

About Indus River

Indus River is a leading developer of managed remote networking solutions that address the scalability, security, dependability and policy management requirements of large corporations worldwide. Named "Best of Show" at Networld + Interop 2000, and as one of the "1999 Hot Products of the Year" for WAN remote access by Data Communications, the company's RiverWorks Enterprise VPN product suite provides unparalleled performance and ease-of-use capabilities for large-scale deployment of policy-enabled virtual private networks.

About Enterasys Networks

Enterasys Networks is a new kind of company, singularly focused on providing global business communication solutions to enterprise customers. Enterasys Networks' vision is to bring customers solutions that enhance their ability to communicate. With over 650 communications-linked patents, Enterasys Networks is the leading business-communications innovator. Enterasys has partnerships with many of the world's leading IT solutions providers, allowing it to build powerful and intelligent infrastructure solutions for today's Global 2000 enterprise customers. Scalability and manageability are at the core of Enterasys Networks' award-winning holistic networking infrastructure solutions. By optimising customer solutions to support converged voice, video and data, Enterasys Networks creates solid foundations for the seamless deployment of emerging business-critical applications.

Through its high touch sales model, and a global network of certified and highly trained resellers, Enterasys Networks delivers unrivalled sales and support services across the business world. For more information on Enterasys Networks products, services and partners visit our web site at www.enterasys.com. Enterasys Networks is a Cabletron Systems (NYSE: CS) company.

About Cabletron Systems

Cabletron Systems is a holding company for four of the most innovative, customer-focused organizations in the telecommunications and networking industry: Enterasys Networks, Riverstone Networks, GlobalNetwork Technology Services (GNTS), and Aprisma Management Services. Listed on the New York Stock Exchange for more than a decade under the symbol CS, Cabletron is an S&P 500 index company. Cabletron's web site can be reached on the Internet at www.cabletron.com.
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Publication:Business Wire
Date:Aug 21, 2000
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