Siemens and 3Com Select General Manager and
Board Members for Planned Converged Networking
Joint Venture
MUNICH, Germany and SANTA CLARA, Calif.--(BUSINESS WIRE)--March 17, 1999--
Top Executives From Siemens, 3Com and Siemens' New Unisphere
Solutions Selected to Head Joint Venture to Drive
Competitiveness and Strategic Direction
Siemens and 3Com Corporation (Nasdaq:COMS - news) today announced the selection of senior management for the
joint venture that they are forming to develop converged voice/data solutions for enterprises.
Hans Schwarz, currently senior vice president and general manager of Enterprise Data Networking for Siemens Information
and Communication Networks, Inc., will become general manager of the joint venture. He joined Siemens in 1973 and has
held senior-level management positions in various technology groups within the company in both Europe and the United
States. In his most recent position with Siemens, he directed sales and development of enterprise network products as well
as development for switch, networking and application products in the U.S. Under Schwarz's direction, the joint venture
will develop products for business enterprises. Unisphere Solutions, Inc., a new Siemens company, will manage Siemens'
activities in the joint venture
''The joint venture will have access to critical resources for convergence and has the full commitment of both parent
companies for establishing world-class technology leadership with the converged networking products under development,''
said Schwarz.
Siemens and 3Com have also named four executives to become members of the joint venture's board of directors. From
Siemens they are Tom Burkardt, chairman and president of Castle Networks, Inc., which Siemens announced it is acquiring
and to become part of Unisphere Solutions; and Bernd Kuhlin, senior vice president, LAN Products, Siemens Information
and Communication Networks Group. Burkardt founded Castle in 1997. From 3Com they are Janice Roberts, senior vice
president, business development; and Edgar Masri, senior vice president, 3Com Network Systems Business Unit. Roberts
is responsible for 3Com's business development worldwide, including acquisitions, investments and emerging business
opportunities. Masri is responsible for 3Com's broad range of networking system solutions for enterprises, carriers and
ISPs.
Plans for Joint Venture Proceeding
The joint venture planning team is meeting its milestones to bring together the best of breed talent, experience and core
technologies for converged networks. Appointing proven management leadership for the joint venture further emphasizes
3Com's and Siemens' strong commitment to their shared vision for convergence of voice and data over a single network --
a way to provide businesses significant telecommunications cost-savings and powerful new business applications.
''We now have named a strong, dedicated management team for the joint venture and are ready to further develop our
vision for converged networks,'' said Janice Roberts, senior vice president, business development for 3Com. ''We believe
that the prospects for our relationship look even broader now that we will be working closely with the Unisphere Solutions
team. This will enhance our ability to move fast and to evolve with each company's separate, yet complementary, business
objectives.''
''The planned Siemens and 3Com joint venture will be a key element of our enterprise strategy,'' said Martin C. Clague,
president and CEO of Unisphere Solutions. ''We believe that the team assembled by the companies is second to none in
this industry and I am looking forward to our future collaboration.''
Solution Strengths Emerging from Complementary Core Competencies
Certain joint development activities that Siemens and 3Com undertook under the existing alliance have already resulted in
significant advances for both companies.
Last year, Siemens began shipping the LAN-based real-time communication solution HiNet(TM) RC 3000 call processing
software. The HiNet RC 3000 enables voice and video connections, automatic call distribution and call-center applications
with corresponding Quality of Service (QoS) at a level of quality previously possible only in telephone networks to be
delivered over an existing LAN. The HiNet RC 3000 portfolio of products, services and solutions comprises a gateway
that enables interworking between Hicom communication systems and LANs as well as connectivity to the Public Switched
Telephone Network (PSTN), a client, a web-based management tool and applications that are easily customized to a
customer's requirements.
Since January, 3Com has been offering customers the SuperStack® II PBX 1000 and 3Com digital phones and adapters.
SuperStack II is 3Com's brand of stackable local area network (LAN) hubs, switches, remote access and wide area
networking products. The 3Com PBX is based on Siemens Hicom(TM) 150E technology and offers businesses the
advantages of integrating their LAN and PBX equipment in a single stackable system, managed by a common application.
Hicom is Siemens' leading communications server brand.
Through the existing alliance and the planned joint venture, Siemens and 3Com will continue to develop enhancements to
their stackable LAN telephony and gateway products - aimed at networks of up to 500 users. The joint venture plans to
apply these technologies to develop additional highly scalable chassis products based on 3Com's CoreBuilder® products.
CoreBuilder systems are geared toward large sites primarily consisting of 500 to 5,000 users.
Joint venture products will be designed to provide telephony-quality availability to ensure reliable dial tone and to support
real-time, interactive multimedia traffic. Expected products include a range of multimedia exchanges* for voice and data,
LAN telephony gateways and Ethernet phones and adapters. Initial applications for these products include voice-enhanced
PC collaboration and conferencing, call centers for Internet-based retailers, and customer service help desks for a variety
of industries, such as financial services, consumer product manufacturing, healthcare, government and education.
About Siemens' Information and Communication Networks Group
The Siemens Information and Communication Networks Group was established on October 1, 1998 as part of the
restructuring of the Siemens information and communication activities. The Group has around 60,000 employees and sales
of about $14 billion, making it one of the world's leading suppliers of end-to-end solutions for voice, data and mobile
networks. Information and Communication Networks provides products, systems, solutions, servicing and support for
setting up, operating and maintaining complete corporate and carrier networks. It also offers ancillary services ranging from
network planning and financial consultancy through startup support to user training. Further information on this Siemens
Group can be found on the Internet at siemens.com.
About 3Com Corporation
With more than 200 million customers worldwide, 3Com Corporation connects more people to information in more ways
than any other networking company. 3Com delivers innovative information access products and network system solutions
to large, medium and small enterprises; carriers and network service providers; PC OEMs; and consumers. 3Com - More
connected(TM) For further information, visit 3Com's World Wide Web site at www.3com.com or the press site at
www.3com.com/pressbox.
About Unisphere Solutions, Inc.
Unisphere Solutions, Inc., based in Burlington, Mass., designs, markets and services converged networking solutions to
Service Provider and Enterprise customers. Founded in March 1999 by Siemens, the company brings together the
know-how of over 500 people, concentrating assets from both Siemens Information and Communication Networks Group
and several technology companies being acquired in the United States to deliver end-to-end networking solutions for
converged networks. The Company leverages its relationship as a wholly owned subsidiary of Siemens to gain access to a
channel of Siemens Information and Communication Networks' 26,000 sales and support people worldwide. Further
information on Unisphere Solutions can be found on the Internet at unispheresolutions.com
The plans and terms for the joint venture expressed in this press release are currently being negotiated by 3Com
Corporation and Siemens AG and are subject to change in the definitive agreements for the joint venture. Safe Harbor Act
Statement Under the Private Securities Litigation Reform Act of 1995: Certain of the comments and information in this
news release are forward looking and involve risk and uncertainties that could significantly impact the results, including but
not limited to, dependence on new technology and intellectual property, successful consummation of transactions in
negotiation, dependence on the global communications, networking, consumer electronics and data storage industries,
competition and pricing pressures; and other risks detailed from time to time in the Company's periodic reports filed with
the Securities and Exchange Commissions.''
3Com, CoreBuilder and SuperStack are registered trademarks and More connected. is a trademark of 3Com
Corporation. Hicom, HiNet and HiNet RC 3000 are registered trademarks of Siemens AG.
Contact:
Siemens
Alice Andors, 202-434-4820
alice.andors@sc.siemens.com
or
3Com Public Relations
Anthony Petrucci, 508-323-1547
anthony_petrucci@3Com.com |
