Optical Data Systems Jumps in Front of the Pack with ATM 25

ODS becomes first hub vendor to deliver ATM 25 to the desktop, rolls out
new line of AnyCell ATM 25 products for the Infinity Intelligent Switching
Hub

Richardson, Texas--June 26, 1995--Optical Data Systems, Inc. (ODS),
(NASDAQ-NMS:ODSI) announced today that it will begin delivering new
switching and user modules for its Infinity hub family based on ATM
25-Mbps technology. To accomplish this objective, ODS is mounting a
significant effort to develop its new AnyCell ATM 25 product line. The new
products include a full range of ATM 25 modules including a new modular
ATM cell-switching backplane that can be easily field upgraded in all
existing Infinity hubs; five ATM 25 user modules that support 6, two 12's,
16 or 32 user ports; two high-speed ATM 25 switch fabrics; high-speed OC3
and OC12 uplink interfaces for the high-speed ATM switches as well as ATM
25 network interface cards for workstations and servers. The new products
will be introduced in two phases.

First Phase

During the first phase, ODS will engineer AnyCell ATM 25 technology into
the Infinity hub chassis using a portion of IBM's 8282 ATM 25 switch
technology. The ODS AnyCell 1094-ATM25-12T switch module provides twelve
ATM ports that provide 25-Mbps connections to each user port and one
100-Mbps TAXI uplink port for high-speed connections to high capacity ATM
switches or high performance servers. Up to ten 1094-ATM25-12T switch
modules can be inserted into each Infinity hub and connected with the ODS
1094-ASX-200 high-speed ATM switch. ODS will also provide an OC3 155-Mbps
uplink for the 1094-ATM25-12T in fourth quarter of 1995.

Phase Two

The second phase will introduce AnyCell ATM products entirely developed by
Optical Data Systems. The new products will include AnyCell ATM 25 modules
including a new modular ATM cell-switching backplane with 20 OC3
connections that can be easily field upgraded in all existing Infinity
hubs; four AnyCell ATM 25 user modules that support 6, 12, 16 or 32 user
ports and two ATM 25 switch fabrics. The AnyCell 1094-ATM-SW16 ATM switch
supports 12 OC3 integrated backbone connections and 4 OC3 or 1 OC12 front
panel uplink connections. The AnyCell 1094-ATM-SW32 ATM switch supports 20
OC3 integrated backbone connections and 12 OC3 or 3 OC12 front panel
uplink connections. All ODS AnyCell ATM modules and switches will attach
to the ATM cell-switching backplane.

Networking Technologies Today

There are several major trends in the local area network's (LANs) evolution
from shared-media LANs to dedicated LANs like ATM. The client/server and
collaborative processing environments push the bandwidth requirement for
server access beyond the limit of current LAN technologies. Today
applications require more and more bandwidth. The access to shared-media
LANs induces delays. A way to overcome this is to reduce the number of
users who contend for bandwidth. This leads to fewer workstations per LAN
segment.

There has been a large increase in the number of LAN segments that belong
to a specific subnet in relation to previous LAN topologies
(micro-segmentation). This arrangement has become more popular as network
managers need to isolate high-capacity servers or high-performance
workstations on dedicated segments to avoid contention on bandwidth access
from regular users.

Using micro-segmentation as a way to provide more bandwidth has increased
the complexity of internetworking between these independent segments and
subnets leading to intricate topologies with collapsed backbone networks,
which translates directly to higher cost of ownership and lower network
reliability.

Ultimately, ATM will enable unlimited segmentation, based on logical
addressing known as "virtual circuits" rather than physical attachment.
With ATM, each end-point can be the simultaneous termination of multiple
segments, each associated with a virtual circuit. Thus, ATM is the
ultimate segmentation technique.

Ward Paxton, President/CEO of ODS expressed that "ODS is deeply committed
to the development of ATM technology for the networking industry. The
AnyCell ATM 25 technology is direct evidence of our efforts to pursue the
best, standards-based technology possible. We have engineered the AnyCell
product line to protect our customer's existing investment in legacy LANs
while allowing them to proactively plan their networking strategies well
into the next century."

"ODS has been installing campus and WAN networks utilizing ATM backbones
for almost two years. By integrating technology and products from FORE
Systems and Cisco Systems in tandem with ODS' own products and
technologies into the Infinity intelligent hub, ODS was able to be the
first to deliver ATM backbone connectivity to the marketplace. Using this
technology, ODS has built the largest ATM backbone network in the world
for the US Army which provides high-speed, multimedia, connection-oriented
networks with enhanced bandwidth allocation and accounting controls," said
Robert Hoskins, ODS ATM product marketing manager. Hoskins added, "Now
that ODS has made the decision to add Desktop ATM 25 to the ODS Infinity
hub, ATM technology will be available from the desktop at 25-Mbps all the
way up to WAN connections running at speeds of up to OC12 or 622Mbps. Many
customers will soon realize that ATM 25 is an attractive and
cost-effective technology compared with other alternatives. For example,
the cost-per-port for ATM 25 from ODS is about $500 per port including the
OC3 uplinks compared to $800 per port including OC3 uplinks for switched
Ethernet. When presented with this type of cost scenario and the benefits
that ATM networks can provide, ATM 25 will be seen as a win-win
opportunity."

AnyCell ATM 25's Benefits

Taking ATM 25 to the desktop is an attractive strategy based on the
following benefits:

* 25.6-Mbps ATM can run over existing voice grade Category 3 UTP wiring,
which means approximately 60% of the installed base of legacy LANs can use
existing wiring

* Unlike shared-media technology, ATM 25 offers adequate bandwidth to
support multiple video channels (MPEG 2), CD-quality audio, multimedia,
video conferencing and client/server applications in the desktop computing
environment

* Better alternative than Switched Ethernet, Switched Token Ring, 100
BaseVG, 100 BaseTX or FDDI

* Today, 155-Mbps is an overkill for desktop applications and
cost-prohibitive to implement

* Upgrading to faster ATM speeds of 155-Mbps or 622-Mbps in the future is a
simple migration strategy

* ATM is a future proof investment

AnyCell ATM 25 Product Line Up

The ODS AnyCell ATM 25 product roll out will consist of ATM 25 modules
including a new modular ATM cell-switching backplane that can easily be
field upgraded in all existing Infinity hubs; five ATM 25 user modules
that support 6, two 12's, 16 or 32 user ports; two high-speed ATM 25
switch fabrics; high-speed OC3 and OC12 uplink interfaces for the
high-speed ATM switches as well as ATM 25 network interface cards for
workstations and servers.

* AnyCell ATM Backplane - The AnyCell ATM Backplane is a passive, modular
backplane that adds cell-switching capabilities to the Infinity hub. It is
compatible with all existing Infinity hubs and can be easily switched out
in the field. The backplane provides twenty OC3 connections which can be
accessed by up to two OC3 per ATM 25 user module. It provides 6.2-Gbps of
aggregate capacity and integrates the Infinity's existing legacy LAN
technology.

* AnyCell ATM 25 User Modules - The AnyCell ATM 25 User modules come in
five versions with 6, two 12's, 16 or 32 ATM 25-Mbps user ports.
Workstations and servers can be connected using ATM 25 network interface
cards that connect to the user module using RJ45 connectors. Each user
module takes up one slot in the Infinity chassis and connects to the ATM
backplane. Up to 320 ATM 25 users can be connected to a fully loaded
Infinity Chassis. Support for virtual circuits ranges from 4,096 circuits
on the 6-port module to 8,192 circuits on the 32-port module.

* High-Speed ATM Switch Modules - The AnyCell ATM Switch modules come in
two versions. The Infinity hub chassis has a total of 12 slots and each
switch takes up two slots, leaving 10 slots to be populated by ATM 25 user
modules. One version of the switch supports six of the ATM user modules
(2.4-Gbps aggregate), the other version supports a full chassis of ten
user modules (3.7Gbps aggregate). Both switch modules can be managed from
either a front panel or backplane 10Mbps Ethernet port. The 1094-ATM-SW16
supports 12 OC3 integrated backbone connections and 4 OC3 or 1 OC12 front
panel uplink connections. The 1094-ATM-SW32 supports 20 OC3 integrated
backbone connections and 12 OC3 or 3 OC12 front panel uplink connections.
There is a RS-232 serial line IP port. The switch supports 16,284 virtual
circuits.

* AnyCell ATM 25 Switch Uplink Modules - There are two uplink interfaces
for the ATM 25 switch modules: one interface supports 4-OC3 ports, the
other supports 1-OC12 port.

* AnyCell ATM 25 Desktop Adapter - The AnyCell ATM 25 Desktop Adapter
brings high-bandwidth ATM connectivity to ISA bus, desktop PCs running
under DOS or Windows, with OS/2 support coming soon. This adapter provides
a 25-Mbps, full-duplex connection to the ATM network. The adapter uses
low-cost, unshielded twisted pair (UTP), categories 3-to-5, or shielded
twisted pair (STP) cable for distances up to 100 meters. Future versions
of the adapter will support PCI, S-Bus and Micro Channel Systems and
should be available by the end of the year.

The ODS ATM 25 Desktop Adapter requires a PC workstation with 386, or
higher, processor; ISA or PCI bus supporting bus master adapters with one
available 16-bit slot; 2 MB (DOS) or 4 MB (Windows) minimum system memory;
PC DOS 6.3, or higher; MS-DOS 6.2, or higher; Windows 3.1, or higher and
OS/2 2.0, or higher (future enhancement). Protocols supported include
NetBIOS, SNA, IPX and TCP/IP through LAN emulation, and soon as the
standard is approved, ATM API's.

LAN Emulation Server

This mode of operation provides a smooth migration path from current LANs
to ATM, without any impact to the upper layer protocols.

The LAN emulation server (LES), implemented in a workstation or server, is
in charge of resolving the LAN addresses and performing broadcasts. Each
LAN emulation client (LEC), connected to the ATM network, registers its
LAN address and ATM address to the LES. The LES and the set of registered
LECs make up a virtual LAN segment. A virtual LAN can also be seen as a
logical broadcast domain that is de-correlated from the physical network
structure.

ATM 25 Standards

ODS is a member of the ATM 25 Desktop Alliance which has been working
diligently internally and externally with the ATM Forum to make the ATM
25.6-Mbps technology a standard. Over thirty-two vendors have been working
to make sure this specification is open and will promote high
compatibility with other vendors' ATM products. The initial release of the
ATM 25 products from ODS will support the User Network Interface (UNI) 3.0
specification and very soon the UNI 3.1 specification. Of the ATM
adaptation layers, ODS plans to support the AAL-5 layer with additional
support for the AAL-1 layer as soon as the ATM Application Program
Interface (API) has been approved by the ATM Forum. Also supported are the
specifications defined by CCITT 1.361 and ANSI TlS1.5/92-002R3.

Availability and Pricing

The AnyCell ATM 25 products will begin shipping in two phases. The first
phase will begin shipping in July of 1995 and the second phase will begin
in the fourth quarter of 1995. Model numbers and pricing information are
listed below:

Phase One
---------
1094-ATM25-12T
     ATM 25 12-port switch module, 1 OC3 uplink        $7,200

1094-ASX-200
     2.5-Gbps ATM switch, supports 4 interfaces       $27,435

1094-NM-6/100MMB
     6 TAXI 100-Mbps ATM ports, SC connectors          $5,615

1094-NM-4/155MMSCB
     40C3 155-Mbps ATM ports, SC connectors            $6,245

1075-ATM25-ISA
     25-Mbps ISA network adapter card                    $500

Phase Two
---------
1095-ATMFDDI-BP
     ATM backplane, 20 OC3 connections                 $3,330
1094-ATM25-6
     ATM 25  6-port user module, 1 OC3 uplink          $4,995
1094-ATM25-12
     ATM 25 12-port user module, 2 OC3 uplinks         $8,995
1094-ATM25-16
     ATM 25 16-port user module, 1 OC3 uplink          $7,995
1094-ATM25-32
     ATM 25 32-port user module, 2 OC3 uplinks        $15,995
1094-ATM-SW16
     2.4-Gbps ATM switch,
     supports 12 OC3 backplane connections            $27,435
1094-ATM-SW32
     3.7-Gbps ATM switch,
     supports 20 OC3 backplane connections            $54,870
ATM-SW-40C3
     4 port OC3  interface for the ODS ATM switch      $6,245
ATM-SW-10C12
     1 port OC12 interface for the ODS ATM switch      $6,245
1075-ATM25-ISA
     25-Mbps ISA network adapter card                    $300
1075-ATM25-PCI
     25-Mbps PCI network adapter card                    $360

Optical Data Systems, Inc. (ODS)

ODS sells a full range of intelligent switching hubs; high-speed
multi-protocol routers, bridges, switches and sophisticated network
management modules to large corporations that build very large and
advanced enterprise-wide information internetworks including LANs, MANs
and WANs. Its mainstay product, the ODS Infinity intelligent switching
hub, is the largest and only hub on the market that supports all four of
the industry standards--Ethernet, Token Ring, Fiber Distributed Data
Interface (FDDI) and Asynchronous Transfer Mode (ATM). The Infinity hub
provides superior local and remote SNMP-based management that supports all
groups of RMON for both Ethernet, Token Ring and FDDI networks. ODS can be
reached at (214) 234-6400.

Optical Data Systems Inc
1101 E. Arapaho Rd
Richardson, TX 75081
214-301-3811,  fax 214-301-3893

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