[March 21, 2000]

3Com Corporation Acquires Leading Unified Messaging Vendor, Call Technologies

Supporting its leadership position in the creation of enhanced IP services for carriers worldwide, 3Com Corporation announced a definitive agreement to acquire Call Technologies, Inc. Call Technologies is a leading developer of Unified Messaging (UM) and Operational Systems and Support (OSS) software solutions for service providers. Unified Messaging gives people access to any message - voice, fax or email - across any network while utilizing any client device -- traditional telephone, wireless handsets, PC or wireless personal digital assistant. OSS gives carriers custom automated management of service delivery and back-office processes.

Through this acquisition, 3Com continues to add value and competitive advantage through new enhanced services capabilities to its CommWorks architecture and Total Control multi-service access platform, the company's flagship solution for the telecommunications provider market. The CommWorks architecture offers global service providers a complete migration path to next-generation converged networks to deliver enhanced services.

"Revenues from fee-based UM services are expected to rise from US$61.7 million in 1999 to US$1.5 billion in 2004." (Source: "Unified Messaging Over IP Services Market," Probe Research, January 2000). In a February 2000 report, Ryan Hankin Kent estimates the 1999 North American OSS market at $8 billion, with an expected growth rate of nearly 30 percent annually over the next five years. (Source: "Telecom OS: Markets and Technology," Ryan Hankin Kent, Feb. 15, 2000). Additionally, "RHK believes the service fulfillment market will begin to grow dramatically, as the need to automate the provisioning and activation process associated with the new services becomes crucial."

The transaction, which is scheduled to close in April 2000, is valued at approximately US$90 million and will be accounted for as a purchase. Excluding a charge for in-process technology in the fourth fiscal quarter, the acquisition is not expected to have a material impact on the current fiscal year 2000 results.

With this announcement, 3Com delivers several key components in the CommWorks architecture service creation layer (tier 3) - an enhanced service creation platform, a suite of UM and Internet-based voicemail solutions. Also, CommWorks architecture management and control layer (tier 2) is enhanced with Call Technologies' Intelligent Activation for OSS automated service delivery and management.

3Com's three-tier CommWorks architecture is a versatile, multi-service packet-based networking solution that offers service providers a complete migration path from traditional circuit-switched networks to next generation converged networks. With its robust tiers of media processing, call control and service creation, the CommWorks architecture enables customers to evolve existing disparate infrastructures for enhanced data services, IP telephony, wireless data, cable and DSL access into a single, integrated IP network for the delivery of a new generation of enhanced services. 3Com's CommWorks architecture gives service providers greater flexibility to differentiate services, create new revenue-generating business opportunities and establish a unique position in the highly competitive communications marketplace.

"With the acquisition of Call Technologies service creation and management solutions, 3Com plans to deliver the industry's best IP-centric enhanced services solutions," said Irfan Ali, senior vice president and general manager of 3Com's Carrier Systems. "Call Technologies' 105 employees have created a suite of products, a solid installed base of ILEC and CLEC customers and bring a wealth of industry knowledge and technical expertise of carrier-class applications infrastructure to 3Com Carrier Systems."

"In service provider networking systems, 3Com is clearly a leading vendor," said Jack Havas, CEO, Call Technologies. "Call Technologies can now leverage 3Com's leadership in delivering comprehensive carrier-class platforms based on its versatile CommWorks architecture and 3Com can take advantage of Call Technologies' experience in UM to offer service providers next-generation IP-based enhanced service solution."

"Call Technologies has designed a truly open, standards-based, Internet-compatible enhanced services platform. In addition to offering all of the basic and advanced messaging applications required to do business as a network operator, Call Technologies offers one of the most flexible multiple-media messaging applications profiled... Call Technologies stands alone in providing customers the option of offering either total message unification or message integration to the end users." (Source: "The Messaging Landscape: Revolutionary Architecture and Evolutionary Implementation," The Yankee Group, August 1999.) According to 3Com and Dun & Bradstreet estimates in 1999, Call Technologies holds 4% of the UM market place, a US$97 million market.

Call Technologies' Call Courier Unify product offers UM capabilities for both PSTN and Internet Telephony networks. The Call Builder Service Creation Engine solution offers an open service creation environment to service providers and third party application developers for delivery of a suite of next-generation enhanced services. The integral combination of Call Technologies' service creation platform and 3Com's CommWorks architecture brings both companies to the forefront of network convergence and enhanced service applications.

Call Technologies also provides advanced Intelligent Activation for OSS products and services. Its netActivate product portfolio gives carriers intelligent flow-through activation, validation, and notification for telecommunication system provisioning. This allows for significant operator benefits in service activation performance by reducing provisioning errors with self-healing error diagnosis and end user notification. These features enable carrier organizations to effectively achieve short service activation times and higher network subscription rates.

The netActivate platform includes a powerful and flexible rules engine for rapid development of element provisioning and utilizes industry standards such as CORBA and XML. Call Technologies' Intelligent Activation for OSS products and services will provide enhanced solutions for 3Com's CommWorks architecture 5000 carrier class network management system.

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