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To: cmg who wrote (9363)	7/9/1998 11:44:00 AM
From: Sector Investor	Read Replies (1) \| Respond to of 42804

Madge's spin on Lannet: Thursday July 9, 9:02 am Eastern Time Company Press Release MADGE NETWORKS N.V. COMPLETES LANNET TRANSITION WITH SALE TO LUCENT TECHNOLOGIES Amsterdam, Netherlands and Wexham SPRINGS, UNITED KINGDOM--(BUSINESS WIRE)--July 9, 1998--Madge Networks N.V. (NASDAQ: MADGF - news), a worldwide supplier of networking solutions, has signed a definitive agreement with Lucent Technologies to sell its Ethernet division, Lannet, for a nominal purchase price of US$117 million. The transaction is expected to be completed before the end of September. Madge Networks announced last year that the Lannet division would be operated independently from the rest of the company, and in April laid down a schedule for the full independence of Lannet via a spin-off. The sale to Lucent brings about the separation more rapidly and removes the risks associated with a spin-off. ''We believe the sale of Lannet is a positive outcome for all parties concerned - it's a good deal for Madge shareholders, a valuable asset for Lucent with a strong strategic fit, and a secure and exciting future for Lannet employees,'' said Robert Madge, chairman and CEO of Madge Networks. ''Most of all, Madge has now completed a major phase of its restructuring, and can focus on growing the business,'' he added. ''We have unlocked the value associated with our investment in Lannet and we now have the resources to embark on ambitious future plans. These plans include further development of our core business areas as well as developing new growth opportunities.'' Regarding the financial terms of the deal, Denis Pomroy, CFO of Madge Networks, explained: ''Lucent is purchasing Lannet as an ongoing concern, including the shares of Lannet Ltd in Israel and the cash allocated by Madge for Lannet's operations. The nominal purchase price is $117 million, and after deducting the Lannet cash which is currently consolidated in the balance sheet of Madge Networks as well as other special costs related to the sale, the net cash inflow to Madge on completion of this transaction is expected to be around $73 million. The transaction is also expected to produce a one-time gain to earnings of around $10 million.'' About Madge Networks Founded in 1986, Madge Networks (NASDAQ:MADGF - news) is a world-wide supplier of advanced networking solutions. A manufacturer of award-winning adapter cards, workgroup switching and backbone products, Madge has pioneered advances in Token Ring, ISDN, video networking and ATM technologies. The company is also at the forefront of developments in High Speed Token Ring (HSTR) technology, and is a founding member of the HSTR Alliance. Madge is committed to providing key components of converged networks - networks which handle simultaneous data, video and voice traffic. Madge's main business centers are located at Wexham Springs, United Kingdom and Eatontown, New Jersey. The company serves its international customer base through a global network of distributors and resellers. Information about Madge's complete range of products and services can be accessed on the World Wide Web at madge.com. Private Securities Litigation Reform Act Statement Investors should take note that certain statements in this press release are forward-looking and may not give full weight to all of the potential risks (e.g., satisfaction of regulatory approvals and other closing conditions, challenges in developing high technology products, competition, and changed priorities and resource allocation resulting from these and other factors). Forward-looking statements included in this press release include statements which refer to completion of a transaction, expected cash proceeds and gain for Madge from a transaction, Madge's future plans, new growth opportunities and other statements which are not historical. Actual results, actions or events could differ materially. For more information on risk factors, please refer to Madge's SEC filings, including Madge's most recent SEC filings on Form 6-K and Form 20F. Madge and the Madge logo are trademarks, and in some jurisdictions may be registered trademarks of Madge Networks or its affiliated companies. Contact: Madge Networks Ltd. Wexham Springs, United Kingdom Internet: madge.com Company Contact: Investor Relations Contact: Denis Pomroy, John W. Heilshorn or Chief Financial Officer LIPPERT HEILSHORN & ASSOC. John Nesbett 212-838-3777 MADGE NETWORKS N.V.. john@lhai.com (+44) 1753-661154 dpomroy@madge.com