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Network Peripherals Concludes Divestiture of Taiwan-Based Engineering Operations.

MILPITAS, Calif.--(BUSINESS WIRE)--July 2, 1999--

Network Peripherals Inc. (NPI; Nasdaq:NPIX), an innovative leader in the network switching industry, today announced the divestiture of the Company's Taiwan-based engineering operations.

This group had been responsible for the engineering efforts associated with the Company's Layer 2 switch products.

"This transaction, concluded with Adhoc Technologies, Inc. (San Jose, Calif.), is another step in tightening our focus on the imminent commercialization of our NuWaveArchitecture products (Layer 3 Gigabit Ethernet) and away from continued investment in our legacy products," said William F. Rosenberger, President and CEO of NPI.

Financial Details:

Rosenberger stated, "The unique structure of this transaction benefits both NPI and Adhoc Technologies. For $1.62 million, Adhoc received all the intellectual property associated with NPI's Taiwan-developed Layer 2 switching technology, $300,000 (net book value) in fixed assets, and most importantly to Adhoc Technologies, a productive engineering team. In addition to the financial consideration previously mentioned, NPI received royalty-free manufacturing and certain non-transferable source code licenses which enable NPI to continue selling the current line of Fast Ethernet switches and hubs. Of course, NPI also realizes a material reduction in engineering expenses."

About Adhoc Technologies, Inc.

Adhoc Technologies, Inc., headquartered in San Jose, designs, manufactures and markets low-power high-performance communications silicon solutions for high-speed networking and Internet infrastructure applications. With its optimized PHY technology using advanced mixed signal CORE Architecture, Adhoc Technologies offers the smallest, lowest power and cost-effective 10/100BaseTx solution on the market today. For more information about products offered by Adhoc Technologies, Inc., please visit their web site at http://www.adhoctech.com.

Network Peripherals, The Gigabit Ethernet Company(TM)

Network Peripherals Inc. (NPI; Nasdaq:NPIX), headquartered in Milpitas, supplies a full range of Layer 2/Layer 3 Ethernet switches and Fiber Distributed Data Interface (FDDI) switches and hubs on an OEM basis to other industry-leading manufacturers. NPI also sells products under its own brand to a worldwide channel of value-added resellers (VARs).

NPI's primary business focus is on 10/100/Gigabit Ethernet Layer 2/Layer 3 switches built with its ASIC-based NuWaveArchitecture. These products will be used as switching solutions for workgroups, wiring closets and backbones, and are designed to enhance the bandwidth and performance of small and mid-sized enterprise networks, embrace all popular high-speed technologies and preserve the end-user's current Ethernet investments. For more information about NPI call 800/674-8855 or visit on the World Wide Web.

Statements in this release are forward-looking and have been made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The future events described above in such statements involve risks and uncertainties, including those discussed in the Company's Securities and Exchange Commission filings.

Note to Editors: NuWaveArchitecture is a trademark of Network Peripherals. Other trademarks are property of their respective owners.
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Publication:Business Wire
Geographic Code:1USA
Date:Jul 5, 1999
Words:468
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