Press Release

For more information, contact:
Leslie Davis
3Com Public Relations
408-326-7187
Leslie_Davis@3Com.com
Shirley Stacy
3Com Investor Relations
408-326-6301
Shirley Stacy@3Com.com
Mark Rawlins
A&R Partners
650-363-0982, ext. 3933
mrawlins@arpartners.com
FOR IMMEDIATE RELEASE
3Com Corporation Acquires Smartcode Technologie
Extends Palm Computing Platform into Mobile Information Appliance Market and Establishes European Platform Headquarters
London, February 10, 1999 - In a move to extend the
leadership position of its Palm Computing® platform into the mobile
information appliance market, global networking leader 3Com
Corporation (Nasdaq:COMS) today announced that it has acquired
Smartcode Technologie of Montpellier, France.
Smartcode is a leading developer and provider of wireless data
communications and Internet access software technology used by many of
the world's leading cellular telecommunications companies. Smartcode's
33 employees will form the nucleus of 3Com's new Palm Computing
platform's European development center in Montpellier.
Through this acquisition, 3Com adds advanced wireless
communications capabilities to the Palm Computing platform to address
the fast-growing market for mobile information appliances such as
cellular telephones, messaging devices, data communicators and smart
phones.
These capabilities complement existing Palm Computing platform
components, which include the device operating system, core personal
information management applications, application program interfaces
(APIs) for software developers, the reference hardware design and the
software interface capabilities to support hardware add-ons.
Enriching the platform with these new wireless capabilities will
enable 3Com to further extend its Palm Computing platform licensing
strategy to a broader range of telecommunication equipment
manufacturers worldwide.
3Com has acquired all outstanding shares of Smartcode Technologie
in a cash purchase valued at approximately U.S. $17.5 million. The
acquisition is not expected to materially impact 3Com's fiscal 1999
results.
Smartcode's president and CEO, Alain Molinie, will become general
manager of the group, to be called Palm Computing Platform Europe.
Molinie will report to Mark Bercow, vice president of strategic
alliances and platform development at Palm Computing, Inc., a 3Com
company.
``The acquisition of Smartcode will continue to drive the
phenomenal growth of the 'Palm Computing Economy' for developers,
vendors and customers in the worldwide mobile information appliance
market as well as further 3Com's vision of pervasive connectivity,''
said Janice Roberts, 3Com senior vice president of business
development.
``Adding new wireless communications capabilities to the Palm
Computing platform and establishing our new Palm Computing platform
European headquarters, coupled with last week's announcement extending
the Palm Computing platform to Japan, underscores our commitment to
driving market growth and expanding our leadership in the worldwide
mobile computing marketplace.''
Serving the Burgeoning Market for Mobile Information Appliances
The acquisition brings 3Com an extensive set of advanced wireless
communications system software, a seasoned business development group
and a premiere research and development team, to serve the burgeoning
market for mobile information appliances. Mobile information
appliances are small form-factor products with integrated or add-on
communications capabilities that provide access to and management of
information from a wide variety of sources.
Smartcode's system software extensions, communications protocol
stacks and end user applications provide highly efficient,
cost-effective communications and Internet access for these
appliances, which are limited in the processing power and memory that
they can support due to their small size. Importantly, Smartcode's
solutions support the leading wireless standards deployed around the
world, such as GSM, GPRS and CDMA.
As Palm Computing Platform Europe, the new group will serve and
extend its existing industry relationships with the leading worldwide
information appliance manufacturers, carriers and technology
providers. This blue-chip list includes industry leaders such as
Alcatel, Motorola, Samsung Electronics, TDK Systems and others.
When combined with 3Com's relationships with these and other
leading cell phone, data messaging and PC manufacturers, this forms a
powerful industry force to help shape technology standards for the
benefit of customers worldwide.
``With this acquisition, the Palm Computing platform, combined
with Smartcode's advanced wireless technologies, is an attractive
solution enabling mobile handset vendors to provide their customers
with first-in-class new generation wireless information devices'' said
Patrick Liot, president, Professional and Consumer Division, Alcatel
Business Systems. ``We are very excited about this announcement and
look forward to further developing our relationship with both
Smartcode and Palm Computing as a single company.''
``3Com's Palm Computing platform is the perfect choice for
extending wireless communications to a broad audience of businesses
and individuals worldwide,'' said Alain Molinie.
``Smartcode looks forward to playing an integral role in building
the business development and engineering efforts of the Palm Computing
platform group in the global wireless information appliance market.
Our technology, expertise and industry relationships here fit ideally
with 3Com's vision for the platform and its fast growth as the de
facto industry standard.''
Mark Bercow added, ``Smartcode brings an ideal blend of
world-class data communications talent, advanced system-level
technologies and solid industry relationships to our platform efforts
as we address the mobile information appliance market. The extension
of the platform into this market segment will continue to fuel the
emergence of new application developers and platform partnerships and
also help us drive the platform further into the enterprise space.
This is an important market for us as enterprise customers are seeking
increasingly to extend access to their critical networked data into
the pockets of their mobile work forces.''
The announcement today highlights the fast growth of the Palm
Computing platform in Europe. Recent market data from International
Data Corp. shows that 3Com assumed the leadership position in the
handheld companion market in Europe in the first half of 1998, with
46.8% market share, compared with 29.7% share for the next largest
market player. (IDC, Jan 1999). 3Com continues to hold 72% of the
personal companion market in the U.S. today.
The Palm Computing Platform
An open architecture for handheld computing, the Palm Computing
platform provides an ideal basis for third-party developers and
licensed original equipment manufacturers (OEMs) to create and deliver
successful mobile computing solutions.
The platform consists of these primary components: the reference
hardware design; the device operating system called Palm OS(TM)
software; the core personal information management (PIM) applications
such as the DateBook; the Graffiti® power-writing software; the
HotSync® synchronization technology; the applications programming
interfaces (APIs) that enable developers to write applications; and
the software interfaces to support hardware add-ons.
Today, more than 15,000 developers worldwide are creating
software for the Palm Computing platform, and thousands of software
applications are already available.
In addition to the 3Com-branded Palm Computing organizers, the
Palm Computing platform provides the basis for a broad range of
products from 3Com's strategic partners. Such products include the IBM
WorkPad PC Companion, Symbol Technologies' SPT1500 with built-in laser
bar-code scanner, the QUALCOMM pdQ smart phone, the Franklin Covey
Electronic DayPlanner, and the Synapse pager card from Motorola and
PageMart.
About Smartcode Technologie
Smartcode Technologie, S.A., headquartered in Montpellier,
France, is a leading Internet and telecommunications software
developer for mobile computing devices and embedded systems. Smartcode
has been producing end-user communications applications, such as
Internet e-mail, web browser and fax, as well as protocol
implementations, since 1995.
About 3Com
With more than 200 million customers worldwide, 3Com Corporation
connects more people to information in more ways than any other
networking company. 3Com delivers innovative information access
products and network system solutions to large, medium and small
enterprises; carriers and network service providers; PC OEMs; and
consumers. 3Com -- More connected(TM). For further information, visit
3Com's World Wide Web site at www.3com.com or the Palm Computing site
at www.palm.com.
# # #
3Com, Palm Computing and HotSync are registered trademarks, and Palm, PalmPilot, Palm III and More connected are trademarks of Palm Computing, Inc. or 3Com Corporation. All other company and product names may be trademarks of the respective companies with which they are associated. No products mentioned herein are manufactured by Pilot Corporation or Pilot Corporation of America, manufacturers and distributors of writing instruments.
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