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Technology Stocks : Cabletron Systems (CS: NYSE) -- Ignore unavailable to you. Want to Upgrade?

To: Rob Skaff who wrote (3983)	6/17/1998 5:03:00 PM
From: Captain James T. Kirk	Read Replies (2) \| Respond to of 8358

I fly a Socata Trinidad. We will be flying into Manchester and departing that same evening. Its simple really, rent the car and go. I have flown into Manchester before, so I belive it will be the best place to satisfy our needs.

To: Rob Skaff who wrote (3983)	6/17/1998 10:27:00 PM
From: Captain James T. Kirk	Read Replies (1) \| Respond to of 8358

Cabletron's xDSL Acquisitions Q&A FINANCIAL Q. What are the term of the acquisitions? A. Ariel's Communications Systems Group - $33.5 million in cash. FlowPoint - $25 million in cash or stock, at Cabletron's election to purchase the approximately 65 percent it does not already own. Q. When are the acquisitions expected to close? A. Within 80 days. Q. How will these companies be integrated into Cabletron? Will they continue to operate as separate divisions? A. The organizations will function as separate divisions, reporting into Cabletron's service provider group. FlowPoint will continue to offer its CPE products through OEM, private label and E-Commerce channels. GENERAL Q. Why is Cabletron making these acquisitions? A. Forecasts for the xDSL market from IDC, predict that purchases will increase from approximately $95 million US in 1998 to almost $1.6 billion (US) by 2001. With its breadth of products and services, Cabletron is uniquely positioned to offer service providers a full range of access solutions, ranging from CyberSwitch access products for ISDN and DSL, SmartSwitch aggregation platforms for central office applications, and SPECTRUM network management for complete OAM&P (Operation, Administration, Maintenance and Provisioning). Q. What is DSL technology? A. Digital Subscriber Loop (DSL) technology is used by telephone companies and other service providers to deliver high-bandwidth applications. One of the most significant advantages of DSL technology is that it utilizes existing copper phone lines to deliver high-speed data connectivity. With the explosion of the Internet, DSL technology leverages the massive installed base of copper to overcome bandwidth and connectivity issues -- without requiring expensive infrastructure upgrades. DSL technology can be leveraged to support high-bandwidth applications such as distance learning, telecommuting, remote office connectivity and voice, video and data convergence. Q. What is Cabletron's strategy for marketing these products? A. One of the most significant benefits of DSL technology is that it redirects data traffic to a separate data network -- alleviating the problem of data traffic tying up the Public Switched Telephone Network (PTSN), which was designed to support voice calls. By redirecting data traffic, service providers can also more easily offer flat-rate Internet services. Consequently, Cabletron will aggressively target service-providers, through vertical marketing programs that leverage the company's enterprise-wide product line and data networking experience. Q. Will Cabletron be selling these products direct or through distribution? A. Cabletron's direct carrier sales force will be targeting telco and Internet service providers. In addition, Cabletron will offer a flexible outsource pricing model designed to allow service providers to quickly deliver service, without incurring a high initial acquisition cost. These products will also be offered to customers through Cabletron's E-Commerce site, allowing service providers to configure and purchase these products directly over the web. Q. Cabletron also announced a data over cable strategy today at SUPERCOMM. How does this strategy fit in with today's announcements? A. Cabletron is committed to providing high-performance solutions for multiple broadband access technologies. Each technology leverages the service providers existing infrastructure, coax or copper, to deliver high-bandwidth applications to its customers. Cabletron has the broadest suite of high-speed broadband access solutions to address both growing markets -- regardless of the medium. PRODUCT Q. What are the major product lines that Cabletron is acquiring? A. FlowPoint Access Routers FlowPoint 128 ISDN/POTS FlowPoint 144 IDSL/Ethernet FlowPoint 2000 ADSL (CAP)/Ethernet FlowPoint 2025 ATM/Ethernet FlowPoint 2200 SDSL/Ethernet FlowPoint 2500 ADSL (DMT)/Ethernet Ariel DSLAM Ariel Horizon II Central Office Multiplexer Q. When will Cabletron begin to sell these products? A. Cabletron is already an OEM of FlowPoint. The company will begin selling Ariel's Horizon product upon closure of the acquisition. Q. Can these products be managed through Cabletron's SPECTRUM enterprise management system? A. Yes. SPECTRUM will provide consistent service provisioning and monitoring tools, allowing service providers to realize significant return on capital investment in networking equipment and operational support. Through the use of SPECTRUM's integrated data warehouse, call detail records can be generated, providing usage-sensitive statistics for outsourced customer billing. This information empowers services providers to accurately account for network traffic and provide end-to-end network visibility. The statements of this document concerning the anticipated benefits of Cabletron's acquisition of the Communications Systems Group (the "CSG") of Ariel Corporation ("Ariel") and the acquisition of all of the issued and outstanding stock of FlowPoint Corp. ("FlowPoint") constitute forward looking information, and actual results could differ materially. The acquisitions of the CSG and FlowPoint involve numerous risks including difficulties in assimilating the operations, technologies and products of the CSG and FlowPoint, the diversion of management's attention from other business concerns, risks of entering markets and distribution channels for DSL products in which Cabletron has no or limited direct prior experience and where competitors in such markets have stronger market positions, and the potential loss of key employees of the CSG and FlowPoint. These difficulties and risks could have a material adverse effect on Cabletron's business, operating results or financial condition. For a more detailed discussion of the risks and uncertainties related to Cabletron's business, please refer to Cabletron's form 10-K filed on May 29, 1998.