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Technology Stocks : 3Com Corporation (COMS)
COMS 0.00130-67.5%Nov 7 11:47 AM EST

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To: bgg who wrote (27904)2/10/1999 9:30:00 AM
From: Kenneth E. Phillipps  Read Replies (2) of 45548
 
Mang & bgg - Enjoy your comments - IMO, the biggest competitive threat to COMS may not be Cisco but Nortel who can afford to cut prices on LAN switches to build market share. I posted this article earlier but I am reposting it because it could explain some of COMS current problems.

Ken
Nortel Networks Announces Aggressive Pricing on New BayStack 350
Switch

PR Newswire - February 04, 1999 10:15

New Price, Added Gigabit Support Deliver Unmatched Performance and Value

for Small/Medium Businesses

SANTA CLARA, Feb. 4 /PRNewswire/ - Bay Networks, a Nortel Networks' (NYSE: NT/TSE: NTL) line of business,
today announced an aggressive price on its new BayStack 350-24T Switch, providing small/medium businesses the
most affordable, high-performance autosense Ethernet switch available today.

The recently introduced BayStack 350-24T Switch, now priced at $2,495 ($104 per port, US suggested retail),
supports 10/100 autosense and high-speed uplinks including Gigabit Ethernet and ATM. Unlike other switches in
its class, the BayStack 350-24T Switch also includes advanced software features like, MultiLink Trunking, 802.1Q
VLAN Trunking and 802.1p Priority Queuing at no extra charge. This level of performance and resiliency are critical
to building infrastructures that are capable of supporting both telephony and data applications - something Nortel
Networks calls Unified Networks solutions.

The BayStack 350 Switches are designed to satisfy the needs of small/medium businesses as part of a
comprehensive business philosophy of Nortel Networks: to provide Unified Networks solutions, creating greater
value for customers worldwide by delivering integrated network solutions spanning data and telephony.

BayStack 350 Switches are part of the BayStack family of high-performance networking equipment for growing
businesses, including hubs, routers, IP appliances, and other switches like the new BayStack 450 Switches. Unlike
BayStack 350 Switches, the BayStack 450 Switches are designed to ''stack'' together in a unique fail-safe cascade
design, to support high-density desktop-switching connections of up to 224 users in one managed device.

SOURCE Northern Telecom Limited

/CONTACT: Tracy Dupre, Nortel Networks, (805) 577-2408,
tracy.dupree(at)nortelnetworks.com; Frank McNally, Nortel Networks, (703)
712-8374, fmcnally(at)nortelnetworks.com; Or visit Nortel Networks' web-site
at www.nortelnetworks.com/

/Nortel's press releases are also available through CNO-Call by fax at
800-758-5804, ext. 122158 or at prnewswire.com

(NTL. NT)

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