XIRCOM EXPANDS REMOTE ACCESS STRATEGY

Company Will Acquire ISDN Vendor; Add Line of Modems

THOUSAND OAKS, Calif., April 12, 1995 -- Xircom, Inc. (Nasdaq: XIRC), the
leading provider of networking solutions for mobile users, today announced
two strategic initiatives to strengthen and expand the company's remote
LAN access solutions. First, Xircom has entered into a definitive
agreement to acquire privately-held Primary Rate Incorporated (PRI), a
leading supplier of standards-based ISDN (Integrated Service Digital
Network) products. Second, Xircom announced plans to expand its product
offerings to include a line of PCMCIA modems.

Xircom's acquisition of PRI provides the company with core ISDN technoogy
and software products for both client and server connectivity. The
company's expansion into PCMCIA modems builds on Xircom's established
modem expertise gained from development of award-winning combination
Ethernet+Modem PCMCIA cards. These new product lines, coupled with
Xircom's recently released Netaccess remote access server product, provide
corporate IS managers and mobile users with a complete end-to-end remote
access solution from a single vendor.

Acquisition of PRI.

PRI will be acquired for a combination of cash and stock with a value of
approximately $48 million. Following the closing of the transaction, which
is expected in May, PRI will become the Xircom ISDN Technology Group based
in its current Salem, New Hampshire facilities. Mark Galvin, currently CEO
of PRI, will become the group's vice president.

ISDN Solutions.

The acquisition of PRI will provide Xircom with a broad set of ISDN
software and hardware solutions much more quickly than if the company had
undertaken development internally. Through the acquisition of PRI
technology, Xircom will expand its target markets to include the rapidly
growing number of organizations and individuals demanding high-speed
remote access solutions for applications such as telecommuting and
Internet access. ISDN technology is also a component of emerging
applications such as enhancement of the cellular infrastructure and
video-on-demand delivery systems.

ISDN provides greater speeds, reliability and bandwidth than traditional
analog phone lines at a lower cost than leased lines, making the promise
of remote LAN access, telecommuting, mobile office/home office (MOHO), and
Internet access applications both practical and affordable.

Xircom to Offer Complete Set of Remote Access Solutions.

"Mobile users continue to demand high-performance connections over
wide-area networks," said Dirk Gates, president and CEO of Xircom.
"Through our acquisition of one of the leading providers of ISDN
technology, we are now in a position to provide mobile users and
organizations with a complete suite of solutions for all their remote
access needs client and server, analog and digital. PRI's intimate
understanding of ISDN, and the needs of ISDN customers will be an
invaluable asset as we begin to roll out our ISDN solutions."

PRI brings with it existing OEM relationships with major internetworking
and telecommunications companies such as IBM, Siemens, Motorola, AT&T and
the Regional Bell Operating Companies (RBOCs). These organizations rely on
PRI to supply them with technology to rapidly produce state-of-the-art
ISDN products and services. PRI's API (application programming interface)
has become the industry's de facto standard, with more ISDN applications
written to it than any other. For the end user and corporate customer, PRI
has also developed a provisioning service to simplify the installation of
ISDN lines and equipment. Through this service, PRI can confirm ISDN line
availability, order the service and assist in product setup.

ISDN Complements Xircom's Current Remote Access Line.

PRI's ISDN technology and connectivity software products complement
Xircom's current remote access products, including its recently introduced
Netaccess Multiport Modem Card on the server side, and its award-winning
CreditCard Ethernet+Modem on the client side. The acquisition of PRI will
allow the company to quickly expand its client and server products into
the ISDN market without developing ISDN technology internally. Xircom
expects to introduce PRI-based products to its sales channel within 90
days of the completion of the acquisition.

"PRI's ISDN expertise will be the building blocks for a new generation of
client and server remote access products," said Mark Galvin, founder and
president of PRI. "This ISDN strength, when combined with Xircom's
high-volume PCMCIA expertise and technical distribution channels, will
result in an innovative, high-throughput solution for both remote and
mobile users."

Expansion into PCMCIA Modem Market.

Xircom's planned introduction of PCMCIA modems further supports the
company's strategy to provide a complete suite of connectivity solutions
for the mobile user. By providing end-to-end remote access solutions on
both the client and server side, the company is able to increase value and
benefits to the user through enhanced performance, ease of use, and
security.

"We led the industry a year ago with the first PCMCIA product to combine a
LAN adapter and high-speed modem in a single card," said Gates. "Now,
we're responding to market needs for a total remote access solution with a
new line of PCMCIA 'modem only' products. This is natural product
extension from a technology point of view."

Grow Share of Modem Market.

Xircom expects to increase its share of the modem market by leveraging its
strength and experience in the PCMCIA market, including strong
distribution channels and a well-recognized brand name. The company will
offer a complete family of modems at different price points by pursuing
its strategy of continued technological innovation combined with low-cost
design and manufacturing. As part of this low-cost, high-volume
manufacturing strategy, Xircom will open a manufacturing facility in
Malaysia, expected to be fully operational by the end of calendar 1995.

Company Background.

Founded in 1988, Xircom is the leader in the development and manufacture of
mobile networking solutions for the personal computer market. The company
has shipped 1.5 million PCMCIA and parallel port adapters to date. The
company is headquartered in Thousand Oaks, Calif., and has regional
offices in Mountain View, Calif.; Washington, D.C.; Antwerp, Belgium; and
Singapore.

Sales: (800) 438-4526.
Telephone: (805) 376-9300.
Fax: (805) 376-9311.

 ============================================================
 From the  'New Product News'  Electronic News Service on....
 AOL (Keyword = New Products) & Delphi (GO COMPUTING PRODUCT)
 ============================================================
 This information was processed from data provided by the 
 company or author mentioned. For additional details, please 
 contact them directly at the address/phone number indicated.
 All trademarks are the property of their respective owners.
 ============================================================
 All submissions for this service should be addressed to:
 BAKER ENTERPRISES,  20 Ferro Dr,  Sewell, NJ  08080  U.S.A.
 Email: RBakerPC (AOL/Delphi), rbakerpc@delphi.com (Internet)
 ============================================================
