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Media Statement on 3Com Ranked #1 in IP PBX Shipments by The Phillips Group, October 10, 2000; 3Com Secures 52.1% of the U.S. IP-PBX Systems Market in First Half 2000

PARSIPPANY, N.J.--(BUSINESS WIRE)--Oct. 10, 2000--Telephony research firm, The Phillips Group, Parsippany, N.J., cites 3Com Corporation (Nasdaq: COMS) as the leading IP PBX vendor in its report "InfoTrack for Enterprise Communications, 09/30/00" for the second quarter calendar year 2000. The Phillips Group reports that 3Com has shipped 1,380 new systems and 25,500 new lines in the second quarter alone. For the broader IP-PBX and IP-enabled PBX categories, these figures represent 38.1 percent of total IP telephony lines shipped.

In addition, The Phillips Group recognizes 3Com as the market leader for the first half calendar year 2000. In this period, 3Com has shipped a total of 2,130 systems and 44,300 lines, attaining 52.1 percent market share of IP-PBX system shipments.

Ed Wadbrook, director of voice solutions, 3Com Corporation, says,

"We are witnessing an inflection point in the market where customers and value added resellers are reevaluating their premise-based communications options. Customers are moving away from legacy PBX systems and investing in open, IP-based solutions. In the first half of 2000, over 20 percent of all PBX/IP-PBX systems shipped in North America were IP-based.

"3Com was the first to market with a commercially viable IP PBX solution and continues to be the undisputed leader in LAN telephony. Customers vote with their dollars and quarter after quarter, 3Com has shown continual growth in sales of the NBX(R) 100 Communication System. The NBX system delivers radically simple business IP telephones with more innovative applications, services and functionality than traditional phone systems. Our telephony solution offers customers rich connectivity and a greater return on investment."

"Our report finds that sales of traditional voice systems, such as PBXs and key telephone systems are down considerably from last year`s record levels, while IP-PBX systems are beginning to gain momentum in the marketplace," said Frank Stinson, senior product manager, The Phillips Group. "Shipments of IP-PBX systems have increased by 50 percent since the first quarter of this year alone. We expect that the growth of this market will continue and vendors such as 3Com are well positioned to continue capitalizing on this market trend."
 
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