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3Com Enters Japanese Market With Visitor and Community Network System -- Making Broadband Access a True Utility for the Country`s Millions of PC and Laptop Users

TOKYO--(BUSINESS WIRE)--Sept. 13, 2000--

Top Prince Hotel Chain Embraces 3Com`s VCN System For Inclusion Into More Than 3,500 Hotel Rooms Throughout Japan

3Com Corporation (Nasdaq: COMS) today announced the deployment of its Visitor and Community Network (VCN) System into the Asia Pacific marketplace. The new VCN System will enhance Internet connectivity speeds and provide value-added information and business communication services for people in hotels, airport lounges, apartment buildings and multi-tenant office buildings throughout Asia Pacific.

Announced in June 2000, 3Com`s new VCN System delivers broadband access at speeds up to 10 Mbps (megabits per second) and customized Web-content over existing in-building telephone wires -- a dramatic performance improvement over typical dial-up Internet connections (56 Kilobits per second or less) and typical SDSL broadband connections (1.5 to 2.4 Mbps). The system is based on next-generation DSL (digital subscriber line) technology (Ethernet-over-VDSL) and also leverages wireless and commonplace "structured" wiring local area networks to deliver broadband services.

"Service providers in Asia are seeking easy-to-install, more cost-effective methods of deploying broadband access to capitalize on the explosive Asia Pacific opportunity -- an opportunity fueled by a 20 percent growth in travel and tourism and more than 20 million Internet users in Japan, " said Amir Eldad, vice president and general manager, 3Com Visitor and Community Based Network Division. "3Com`s new VCN System meets today`s service provider requirements while laying the foundation for future revenue generating services such as voice, video and additional application services."

3Com`s VCN System

The VCN System is comprised of 3 unique connectivity devices:

--VCN Access Point - A desktop device that simultaneously connects
a laptop or desktop computer and a telephone to the VCN solution via
industry standard RJ-45 connectors. Dedicates 10 Mbps Switched Fast
Ethernet to each end-user and advanced Ethernet-over-symmetric VDSL
(Very high speed Digital Subscriber Line) technology for always-on,
seamless Internet connectivity over existing copper telephone lines.

--VCN Access Concentrator - A wiring closet device that
concentrates up to 24 VCN Access Points, fits any standard 19-inch
telecommunications rack for wiring closet installations, connects to
3Com`s SuperStack(R) II Switch 1100/3300 and other industry standard
Ethernet local area network switches, supports remote management.

--VCN Server - A wiring closet device that offers easy service
provisioning per user and for providing web-based content for users at
each location (e.g., hotel, apartment building) and for Internet-based
billing, accounting, and security/authentication services. 3Com offers
this specialized server technology through SolutionInc Limited, of
Halifax, Canada.

VCN System Deployment In Japan

3Com today also announced Prince Hotel`s installment of the VCN System. With 82 hotels and over 26,000 rooms, Prince Hotel is the largest hotel chain operator in Japan. The initial installation of 3Com`s VCN System will provide more than 3,500 guestrooms and over 100 banquet function rooms with next-generation broadband access throughout 11 Prince Hotels. Targeting early October 2000, the new VCN-powered broadband service will begin at Prince Hotel`s Tokyo location with additional hotels in major cities to quickly follow.

The VCN broadband access services for Prince Hotels will be installed and maintained by inter-touch, a Sydney, Australia based telecommunications service provider. Inter-touch and 3Com have teamed up to provide high-speed Internet access to Prince Hotels. 3Com`s strategy is to sell its VCN System to third party service providers, who then will market and deploy the network services at airports, hotels and other multi-tenant unit buildings and public spaces.

"The market for fast, plug and play broadband access is growing rapidly in Japan. Hotels, apartment complexes and businesses are seeking new ways to meet the needs of today`s technology-savvy guests, renters and small and medium business owners. For example, Japan currently has over 590,000 hotel rooms -- all seeking new methods to attract and retain business, over 50 percent are direct targets for 3Com`s VCN System," said Ryoji Tsuchimoto, Representative Director & President of 3Com Japan K.K.

For more information and photos of the new VCN System, please visit 3Com`s virtual press room located on the World Wide Web at www.3com.com/news/releases/vpkvcn.html
 
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