News Release

Olicom and Cisco Forge Long-Term, Strategic Token-Ring Alliance

Includes Joint Development of Token Ring Switch Products
Mar 26, 1996

Copenhagen, Denmark and Research Triangle Park, NC -- March 26, 1996 --Olicom A/S (NASDAQ:OLCMF), a leading supplier of high-performancenetworking solutions, and Cisco Systems Inc. today announced a long-termagreement to jointly develop Token Ring technology for router and switchingproducts.

Under the terms of the agreement, Cisco and Olicom will jointly develop thefuture generation of Token Ring switch products to provide cost-effective,dedicated Token Ring connectivity to the desktop. Cisco will provide theswitching and routing technology. In turn, Olicom will provide Token RingMedia Access Control (MAC) technology, custom ASIC designs, and provideOlicom core Token Ring technology to Cisco, including the company'shigh-performance PowerMACH software. The resulting products will bemarketed separately by both companies.

Token Ring switching products resulting from the Olicom Agreement willcomplement other Token Ring capabilities Cisco offers in the LAN switchingmarket as part of its CiscoBlue product roadmap.

This agreement will strengthen Olicom's position and broaden its productoffering in the fast growing LANswitching marketplace. The productsresulting from the Cisco alliance will complement Olicom's industry leadingToken Ring connectivity product family and will add major growth opportunities.

Cliff Meltzer, Vice President and General Manager of the Cisco InterWorksBusiness Unit responsible for the IBM internetworking market said, "Cisco isextremely pleased to have Olicom as a partner, since they are a leader inpioneering Token Ring switching solutions recognized for high quality,superior performance, and interoperability. Olicom has more than ten yearsexperience in internetworking technology and operates a business modelsimilar to Cisco's with a strong reliance on strategic partnering. With thisalliance, Cisco will have the capability to compete even more effectivelyin Token Ring LAN switching, a major developing market opportunity."

"We see this long-term alliance as a way of significantly strengtheningOlicom's position as a supplier of high-quality LAN switch solutions and, atthe same time, as an opportunity to advance Cisco's position as the world'sleader in internetworking solutions," said Lars Stig Nielsen, President andCEO of Olicom. "Token Ring switching has spurred the growth of Token Ringand extended its viability. With these new switch products in our offerings,Olicom will be positioned to further capitalize on this growth. We lookforward to a long, fruitful relationship with Cisco."

Olicom develops and markets a broad range of Token Ring, Ethernet and ATMlocal area network products. In the Token Ring market, Olicom isestablished as one of the world's leading suppliers. Olicom products, knownfor high quality, high performance and competitive prices, are distributedworldwide by a network of strategic partners and resellers. Founded in1985, the company's stock is traded on NASDAQ's National Market Systemunder the symbol OLCMF. More information on Olicom is available from thecompany's SEC filing or by contacting the company directly. Olicom newsand product/service information are available at World Wide Web site Olicom is headquartered in Copenhagen, Denmark.

Cisco Systems Inc. (NASDAQ:CSCO) is the leading globalsupplier ofinternetworking solutions,including routers, LAN and ATM switches, dial-upaccess servers and network management software. These products, integratedby the Cisco IOS(tm) software, linkgeographically dispersed LANs, WANs andIBM networks. Cisco news and product/service information are available atWorld Wide Web site Cisco is headquartered in SanJose, Calif.

Posted: Mar 26 08:08:25 1996