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Technology Stocks : FASTCOMM (FSCX)...UP, UP, & AWAY!!!

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To: Rick Smith who wrote (37)3/2/1998 10:20:00 AM
From: Alan Aronoff   of 173
 
STERLING, Va.--(BUSINESS WIRE)--March 2, 1998--

Cements Leadership Position in LAN+Legacy(TM) Networking With Alternative To Front End Processors

FastComm Communications Corp. (NASDAQ:FSCX) today announced it has reached an agreement to acquire for shares of
its common stock the assets of KG Data Systems, Inc. (Norwalk, CT), a maker of channel-attached networking devices that
connect wide area networks directly to mainframe computers. The acquired technology, including products now shipping,
reduces or eliminates the need for front end processors -- with their complexity and software costs. The target market is SNA
networks -- estimated by various consultants to number up to 50,000. Users can expect a reduction in operating costs by more
that fifty percent.

"I am pleased to announce the acquisition of KG Data Systems, a unique opportunity to enter a new market," said Peter C.
Madsen, FastComm president. "A channel-attached communications processor, coupled with our existing remote-site access
devices, gives FastComm the ability to offer an extraordinarily economical and easy-to-use solution for an entire enterprise
network. This equipment gives network operators a way to migrate away from point-to-point and multidrop leased lines,
ultimately to frame relay, while preserving investments in mainframe computers, business application software, terminals, and
staff skills. In addition, our ability to integrate LAN and voice traffic further simplifies the network and reduces operating costs.
And we can do it over public or private frame relay services, X.25 networks, leased and switched lines, or any combination."

Dr. Kenneth A. Bloom, president of KG Data, will join FastComm as vice president, mainframe networking. Previously he
was with General Electric, Siemens, and Data Switch Corp. He and his staff will remain in the Norwalk facility.

Low Operating Costs

The ChanLcomm(R) Enterprise Communications Controller does not require the user to license IBM software. That is, there
are no ongoing license fees for NCP/SSP and other communications programs.

"Larger data centers with multiple FEPs can save hundreds of thousands of dollars per year in software license costs," said
Madsen.

Easy On-Line Configuration

A key feature of the ChanLcomm(R) ECC is the ability to configure individual lines while the system is operating. "Making
changes on-line, without what we used to call a 'sys gen,' brings a new level of user-friendliness to mainframe networks,"
Madsen pointed out. "Gone are weekend, off-hour, and holiday sessions to install an 'NCP gen' or reprogram a front end
processor with a new network configuration. Changes are made at any time, on the fly, without affecting other users on the
network."

ChanLcomm ECC Shipping

KG Data currently ships the ChanLcomm Enterprise Communications Controller, a substitute for a front end processor in an
SNA (IBM) environment. The ChanLcomm ECC connects directly to a 43xx, 3090, ES/9000, and Multiprise 2000 class of
mainframe central processor unit via standard "bus and tag" channels, either block or byte multiplexed.

Depending on the network topology, ChanLcomm ECC takes on appropriate characteristics. When communicating with
remote PU2 controllers, it appears to the local Central Processing Unit (CPU) as multiple local terminal controllers (3174s).
When communicating between hosts (PU4, SNI, cross-domain), ChanLcomm ECC operates as a 3088 channel to channel
device. To a remote FEP, ChanLcomm ECC appears to the Network Control Program as a major node.

On the wide area network side, the product supports point-to-point, multidrop, and switched lines to remote terminal
controllers and other types of user equipment. SDLC and bisynchronous protocols are offered.

The Enterprise Solution

"One of the first projects is to bring FastComm's frame relay capabilities into the ChanLcomm product," said Madsen. "We
have the software, ready to port to this hardware, that will make it compatible with the standards for SNA over frame relay,
including RFC-1490 and the Frame Relay Forum implementation agreements. We will also bring in our capabilities in X.25 and
LAN routing, making ChanLcomm ECC interoperable with FastComm's EtherFRAD(TM), MonoFRAD(TM), and
RingFRAD(TM) products, including the tens of thousands of units now deployed."

"A channel-attached alternative to the traditional front end processor, like the ChanLcomm ECC, will be appealing when it
reduces costs and simplifies operations," said Steve Taylor, an noted industry analyst and principal of Distributed Networking
Associates (Greensboro, NC). "Mainframes are far from dead: my own studies show that SNA traffic represents roughly 15%
of the rapidly expanding frame relay market-- and I don't expect this percentage to decline."

Multiple Network Applications

With its extensive SNA capabilities, the ChanLcomm ECC supports a wide range of applications including as a:

-- LAN gateway between SDLC and Token Ring or Ethernet;

-- FEP replacement between mainframe channel and terminal equipment using SDLC, token ring, Ethernet, or frame relay;

-- Cross-domain link, communicating between hosts -- channel to channel or between local hosts and remote Front End
Processors (FEPs) running Network Control Program (NCP).

For more information, or to request a data sheet of any FastComm product, phone 1.703.318.7750; Email to
info@fastcomm.com; or visit FastComm on the World Wide Web at fastcomm.com.

Forward looking statements and market estimates are made in this release pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Investors are cautioned that all forward looking statements are subject to risks and
uncertainties, including, without limitation, the timing of new announcements or introductions by the Company and its
competitors, the hiring and retention of key employees, competitive pricing pressures, dependence on third parties for
components and products, general economic conditions in the United States and international markets, and the risk factors
detailed from time to time in the Company's periodic reports and registration statements filed with the Securities and Exchange
Commission.

FastComm Communications Corp. (FSCX, NASDAQ) designs, manufactures, and sells access products for public and
private digital networks. Its products include X.25 and Frame Relay concentrators; VoiceFRAD(TM), EtherFRAD(TM),
RingFRAD(TM), and MonoFRAD(TM) Voice and Data FRADs; WEB.router(TM) Internet access routers; T-1/E-1 ATM
access equipment; and a family of high speed data compressors.
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