CABLETRON DECIDES NOT TO PURSUE CHIPCOM TAKEOVER OPTION

Company Promises Aggressive Trade-Up Program for Chipcom/3Com Customers

Rochester, NH -- August 3, 1995 -- Cabletron Systems (NYSE: CS) today
announced that it will not seek to acquire Chipcom Corporation, but will
instead focus its efforts on winning over Chipcom and 3Com customers while
their merger is pending and efforts to integrate technologies take place.
Last Thursday the company had filed with the Federal Trade Commission
(FTC) to purchase shares of Chipcom Common Stock.

Cabletron had been evaluating its options including a possible takeover bid
and preventative blocking strategy due to concerns over the product
strength of the combined entity. After taking less than a week to evaluate
its options internally and with analysts, the company concluded that a
combined Chipcom/3Com entity would likely have a weakened competitive
product position resulting from its disjointed focus on the high-end
marketplace.

"After analyzing various options we have decided that the best opportunity
available to our company and shareholders is to pursue Chipcom and 3Com
customers whom we believe will be disrupted by the merger of these two
companies," said S. Robert Levine, Cabletron's president and chief
executive officer. "It is our plan to launch an aggressive trade-up
program allowing Chipcom/3Com customers to benefit from a singular
technology approach common throughout all Cabletron products."

The company announced that it intends to liquidate its holdings of Chipcom
Common Stock at a substantial profit.

Headquartered in Rochester, NH, Cabletron employs more than 5,000 people in
over 80 offices around the world. The worldwide modular hub market leader
(Dataquest Incorporated; February 1995), Cabletron is ISO-9001 certified.
Cabletron develops, manufactures and markets Ethernet, FDDI, Token Ring,
ATM internetworking and Enterprise Management software products based on
its Synthesis product framework.

Cabletron directly services more than 80,000 customer sites around the
globe and provides 7 x 24 support coverage, with free phone support during
normal business hours. A component of the S&P 500 index, Cabletron's
common stock is traded over the New York Stock Exchange under the symbol
CS. Over the last four quarters the company has reported record revenue of
$871 million and earnings of $174 million.
 
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