Xircom announces acquisition and key partnerships

Xircom launches new strategy of partnerships with Ericsson, Cisco Systems and acquisitions to capitalize on rapidly growing wireless market opportunity.THOUSAND OAKS, Calif.

Xircom launches new strategy of partnerships with Ericsson, Cisco Systems and acquisitions to capitalize on rapidly growing wireless market opportunity.

THOUSAND OAKS, Calif., June 14, 2000 - Xircom, Inc. (Nasdaq: XIRC) this week announced a series of key industry partnerships and an acquisition to firmly position the company as a unique provider of wireless data technology solutions.

Xircom has agreed to acquire Omnipoint Technologies Inc. (OTI) from VoiceStream Wireless Corporation (Nasdaq: VSTR.) The acquisition of OTI and alliance with VoiceStream is to enhance Xircom's wireless position by adding Global System for Mobile Communications (GSM), and General Packet Radio Service (GPRS) products and technology to its Wide Area Network (WAN), wireless data access solutions.

Xircom, in agreements with Ericsson, also supports wireless Personal Area Networks with Bluetooth wireless technology. It has agreed to become the primary provider of Bluetooth data access products to Ericsson Mobile Communications AB.

And most recently, Xircom and Cisco team up to provide wireless Local Area Network (LAN) products. It announced plans to partner with Cisco Systems, (Nasdaq: CSCO), the leader in networking for the Internet, to cooperate in the development, marketing, and sales of mobile wireless LAN (WLAN) network adapters based on the IEEE 802.11b Wireless Ethernet standard.

"These alliances with targeted wireless market leaders, along with the OTI acquisition, are key elements in Xircom's strategy to enter into the wireless market and take advantage of the explosive growth predicted for the industry," said Dirk Gates, Xircom chairman, president and chief executive officer. "To ensure Xircom is prominently positioned in the wireless marketplace, we will continue to form partnerships and alliances with wireless technology leaders."

The acquisition of OTI and the establishment of an alliance with VoiceStream, the largest US provider of GSM-based personal communications services, provide Xircom entry into a market of 360 million GSM users worldwide by the year-end 2000.

"This is a great opportunity to leverage our current leadership position in the wired mobile data access market and to realize our vision of establishing Xircom as an international leader in the emerging wireless arena," said Marc Devis, senior vice president, worldwide sales and marketing for Xircom. "Future Bluetooth solutions will further cement Xircom's position as the wireless industry's most complete end-to-end wireless mobile data solution provider."

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