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To: allii who wrote (46182)5/9/2000 10:21:00 AM
From: john   of 150070
 
Tuesday May 9, 9:59 am Eastern Time
Company Press Release
Digi International Announces Partnership with Compaq To Develop Server-Based Communications Solutions

Compaq ProLiant Servers Equipped with Digi Communications Adapters
Present Powerful, Cost-Effective Communications Solution

LAS VEGAS--(BUSINESS WIRE)--May 9, 2000--At Networld + Interop today, Digi International© (Nasdaq: DGII - news) announced a partnership and marketing alliance with Compaq Computer Corporation (NYSE: CPQ - news) through which the two companies will jointly develop and market a family of server-based communications solutions. The partnership combines the strengths of two leading networking hardware providers to offer resellers and end user customers cost-effective, reliable communications solutions.

The partnership comes in response to the growing market demand for server-based communications solutions, which are systems built by installing a communications adapter and application software in a standards-based server. Server-based communications solutions are ideal for applications such as remote access, advanced fax, virtual private networking, Internet connectivity, computer telephony, unified messaging and Internet point-of-presence.

The open systems approach of server-based solutions benefits resellers and end users by presenting solutions that are easy to build, configure and manage. Additional benefits of choosing open, server-based solutions over systems based on proprietary boxes include: low cost of ownership; increased flexibility and scalability; and simplified training and support.

Digi(TM) and Compaq are planning to market the solutions to their partners in the reseller channel, creating a tremendous opportunity for Compaq and Digi resellers to profit from a reliable, yet reasonably-priced communications solution jointly designed by two powerhouses in the networking hardware industry. The server-based approach allows resellers to configure systems that do more and cost less to build, own and operate. This offers resellers and integrators higher margins, increasing the potential profit that can be made on the solutions they sell.

The two companies have already begun configuring and testing a variety of complete communications solutions that incorporate Compaq ProLiant servers, Digi communications adapters, and third party application software. Digi communications adapters employ advanced digital signal processing (DSP) technology from Analog Devices.

As part of the agreement, both partners have also agreed to develop training materials, technical overviews and solution guides to ensure that resellers, integrators and end users can configure and use the solutions with ease. Comprehensive technical support will be provided by both companies. In addition, both companies will devote resources to the development and implementation of marketing and sales initiatives to promote the power and versatility of Digi/Compaq server-based communications solutions.

``Server-based communications solutions are a major growth market, and offer excellent opportunities for resellers,'' said Joseph Dunsmore, Digi president and chief executive officer. ``Our work with Compaq has produced dependable solutions that resellers can build, customize and install quickly and easily. This program makes it incredibly easy to start selling these systems to customers today.''

According to Eric Graves, vice president, solutions division, Compaq telecommunications, ``With the help of Digi, we will be able to expand the scope of our enterprise solutions and offer these server-based communications solutions to our Compaq channel partners. We believe this is an exceptional opportunity.''

Digi, as part of this alliance with Compaq, has selected Hall-Mark, a division of Avnet, Inc., to be the first distributor to participate in this program. Hall-Mark will initially offer a line of remote access servers (RAS) designed to meet the needs of businesses of all sizes. The RAS solutions combine Compaq ProLiant servers, Digi DataFire© RAS or AccelePort© RAS communications adapters, Microsoft© Windows NT© and application software from Acotec, imagine LAN and Compaq.

Digi and Compaq will continue to work with independent software vendors, such as Acotec, imagine LAN and SpartaCom, to design and test configurations that will expand the functionality of these server-based solutions and enable applications such as fax, security, management, virtual private networking and modem-pooling.

Digi International

Digi International (Nasdaq: DGII - news), based in Minneapolis, is a leading worldwide provider of voice and data communications hardware and software delivering seamless connectivity solutions for open systems, server-based remote access and LAN markets. The company markets its products through a global network of distributors and resellers, system integrators and original equipment manufacturers (OEMs). For more information, visit the Digi Web site at www.digi.com or call (800) 344-4273 (U.S.) (952) 912-3444 (International).

Digi, Digi International, the Digi logo, DataFire RAS and AccelePort RAS are either trademarks or registered trademarks of Digi International Inc. in the United States and other countries. All other brand names and product names are trademarks or registered trademarks of their respective companies.

Certain statements made in this release are forward looking statements that involve risks and uncertainties. These forward-looking statements are not guaranties of the company's future performance. Important factors could cause actual results to defer materially include, but are not limited to the following: rapid changes in products and technologies that may displace products sold by Digi, the competitive industry within which Digi operates, Digi's reliance on distributors, declining prices of networking products, and changes in the companies level of profitability.
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