MICROSOFT LICENSES ATM SOFTWARE FROM OLICOM

August 10, 1995, Copenhagen, Denmark - Olicom, a leading provider of
high-performance networking solutions, today announced that its ATM LAN
Emulation and signaling software has been chosen by Microsoft for
inclusion in Microsoft operating systems.

Microsoft chose Olicom after conducting an evaluation of ATM LAN Emulation
software. "Olicom has extensive expertise in both classical LAN and ATM
networking," said John Balciunas, Business Manager for Business Systems
Division at Microsoft. "Using Olicom's software, we will be able to
provide our customers with support for ATM LAN Emulation in the Windows
family of operating systems."

LAN Emulation defines how Token-Ring and Ethernet network operating systems
and compatible applications can run unmodified on ATM networks. Using LAN
Emulation, existing, off-the-shelf applications can harness the bandwidth
of ATM, without the need for a native ATM network operating system. By
implementing LAN Emulation in its operating systems, Microsoft will enable
its customers to preserve their existing investments in operating system
and application software, but take advantage of the benefits of ATM
networking.

Under the agreement, Microsoft will license Olicom's ATM signaling code,
LAN Emulation Client software and LAN Emulation Server software. This
software suite, which is fully compliant with the specifications issued by
the ATM Forum, will support all current and future ATM adapter cards from
Olicom. This ensures that customers using Olicom ATM software drivers and
adapters will be upwardly compatible with new versions of Microsoft's
Windows operating systems. Olicom will hold the responsibility for
maintaining and updating the software in compliance with ATM Forum
specifications.

According to Niels Joergensen, Vice President of Engineering at Olicom,
"Microsoft's decision to integrate Olicom's ATM software into the Windows
operating systems clearly demonstrates its commitment to bring ATM
technology to the desktop." He continued, "Microsoft's unparalleled
presence at the desktop operating systems level coupled with Olicom's
expertise in high-performance network connectivity, will enable corporate
users to migrate their current networks to the networking technologies of
tomorrow. This will pave the way for implementation of high-bandwidth
applications to the desktop, such as those making use of multimedia."

Lars Stig Nielsen, President and CEO of Olicom said, "We intend to remain
at the forefront of ATM adapter technology and thus view this agreement
with Microsoft as an important strategic step for Olicom. The
incorporation of ATM software at the operating system level will fuel the
growth and development of the market for ATM products at the desktop. We
are proud that our ATM software was chosen above other options and look
forward to working closely with Microsoft in the future"

In 1994, Olicom was the first networking vendor to publicly demonstrate
functioning ATM adapters operating in industry-standard PCs; and in 1995,
Olicom was the first networking vendor to publicly demonstrate ATM LAN
Emulation, implemented according to the ATM Forum's LAN Emulation
specification.

Olicom's suite of ATM LAN Emulation software enables classical LAN networks
to co-exist with ATM networks. The benefits to corporate network
administrators and users are two-fold. First, classical LAN file servers
can be physically located on an ATM backbone, but can be accessed by
workstations physically located on a classical LAN. Network bottlenecks at
the file servers are greatly reduced because they can use the full 155Mbps
bandwidth of ATM. The ATM backbone and classical LAN, in this case, are
connected via a bridge.

The second major benefit of LAN Emulation is that "power-users," whose
applications require high bandwidth, can have their workstations
physically located on an ATM network, but these workstations can be
running existing, off-the-shelf classical LAN application software. These
users will also be able to use the full bandwidth of ATM. By taking
advantage of LAN Emulation, classical LAN administrators are offered a
smooth migration path to ATM while investments in current networks are
secured.

Olicom's ATM Product Line

The Olicom ATM product line is designed to provide a migration path for
enhanced use of ATM products and services together with the existing
Token-Ring and Ethernet technologies.

Olicom will initially provide customers with a complete family of ATM
adapters. These will later be supplemented with LAN switching and bridging
products incorporating ATM switching.

Olicom's first adapter, an ATM EISA adapter, is a 155 Mbps card with
standard fiber connectors. This adapter will be supplemented later this
year by a comprehensive range of PCI and ISA adapters for both 155 and 25
Mbps ATM.
 
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