For more information:
David Morelli or Catharine Heddle
Environics Communications
(416) 920-9000
dmorelli@pr.environics.ca or cheddle@pr.environics.ca

Christine Doherty
Marketing Manager
3Com Canada Inc.
(905) 319-6162
Christine_Doherty.3Com.com

FOR IMMEDIATE RELEASE

Palm Computing President Reveals Handheld Strategy In Comdex/Canada '99 Keynote Address

President Alan Kessler gives keynote speech to packed house on opening day of major computer technology exhibition in Toronto, Ontario

Toronto, Ontario - July 14, 1999 - Palm Computing president Alan Kessler declared Canada "Palm Country" today during his opening day keynote speech at Canada's largest computer trade show. Palm Computing, Inc. is a subsidiary of 3Com Corporation (Nasdaq:COMS), a leading global networking company.

During his keynote presentation to Comdex/Canada '99, entitled "Putting a Mountain in a Teacup: Palm and the Handheld Industry," Kessler announced record first-quarter shipments of 3Com's award-winning Palm™ series of connected organizers, extending its lead in the Canadian handheld computer market. According to Evans Research, Canada's leading computer technology market research organization, devices using the Palm OS - including the Palm III™, Palm IIIx™ and Palm V™ organizers - accounted for 84 per cent of all handheld shipments in the first three months of 1999. The introduction in late February of the Palm IIIx and Palm V organizers helped to solidify Palm's position as Canada's mobile solution of choice.

"After a strong fourth quarter in 1998, 3Com was able to respond with a 12 per cent increase in units shipped in the first quarter of 1999, and that was with considerable shortages of its new products," said Dave Armitage, an analyst with Toronto-based Evans Research. "Essentially, demand for Palm products outstripped supply. 3Com is expected to have even higher volume of shipments in the second quarter to fulfill pent-up demand."

During his first major public address since taking the helm of Palm Computing on July 7, Kessler reviewed the factors leading to the overwhelming success of the handheld industry in general and Palm Computing in particular. Kessler also discussed the role of handhelds in the enterprise, showcasing examples in the government, healthcare and financial services industry, and wireless solutions such as QUALCOMM's pdQ smartphone. Finally, Kessler explored the future of handheld computing and described his vision for Palm Computing.

"I predict that Canada will continue to pioneer the use of handhelds and the growth of the handheld industry," concluded Kessler. "Canada will continue to be Palm Country."

According to data from Evans Research Corporation, 3Com's Palm connected organizers have consistently enjoyed a higher market share in Canada than any other country in the world. The most recent International Data Corporation (IDC) research figures show Palm products with 72 per cent of the worldwide market. Today, more than 300,000 Canadians have Palm connected organizers in their pockets or purses, embracing the Palm Computing® platform as the simplest, fastest, most portable and user-friendly solution to their mobile computing needs.

"By broadening 3Com's line of Palm computers with the Palm V and Palm IIIx connected organizers, we're providing a Palm device for every customer at every price," said Michael Moskowitz, national sales and marketing manager for 3Com Canada's Palm Computing division. "We're seeing Palm organizers in the hands of a more diverse group of Canadians, from business executives and sales managers to teachers, doctors and farmers. With developers producing thousands of proprietary applications, large corporations have recognized that Palm computers can save time, save money and improve operating efficiencies."

The de facto standard in handheld computing
With well over three million units shipped since the PalmPilot™ connected organizer was introduced in 1996, Palm Computing products have won more than 80 awards and received broad industry recognition for their ease of use, versatility, shirt pocket-size and expandability. The Palm Computing platform has become the de facto standard in the handheld computing industry with the support of more than 17,000 software developers and hundreds of companies creating hardware add-ons such as wireless modems, pager cards, telephony products, voice recognition modules and global positioning system (GPS) receivers.

3Com Canada activities at Comdex
3Com Canada has a pervasive presence at Comdex / Canada '99. The 3Com exhibit (booth #7224) boasts a Palm IIIx and Palm V organizer display; participation from a number of Palm partners including 724 Solutions, Bell Canada, Oracle and Symbol Technologies; demonstrations of 3Com's new high-speed wireless LAN products; and a live display of the revolutionary new 3Com® NBX® 100 LAN telephony communications system.

3Com Canada general manager Dan Servos will speak at the Comdex Towne Hall PowerPanel Session alongside Paul Tsaparis, chief executive officer and general manager of Hewlett-Packard Canada and Michael Cowpland, chief executive officer of Corel Corporation, among others. The panel will discuss hot topics in the news this week.

About 3Com Corporation
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.™ For further information, visit 3Com's World Wide Web site at www.3com.com or the press site at www.3com.com/pressbox.

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