3Com Outlines Strategy to Bring its H3C Enterprise Networking Portfolio to the World Market

Challenging the enterprise networking status quo with broad, fresh product linecurrently deployed in the largest enterprises in China

Increasing adoption among large enterprises in select countries around the worldindicates strong appetite for new approach to networking

KUALA LUMPUR, May 12, 2009—3Com Corporation (Nasdaq: COMS) today outlined its strategy to bring larger enterprises worldwide a new level of price/performance and innovation that is long overdue in the enterprise networking market. In today’s economy, enterprises are faced with unprecedented budget pressures and increasing demands for uncompromising network performance, uptime and security. 3Com is addressing this market need by taking its broad, fresh portfolio of H3C edge-to-data center solutions to the world.

“Our experience in achieving market leadership over the last few years in China has made it clear there is a significant need to take the cost and complexity out of building enterprise networks,” said Bob Mao, chief executive officer, 3Com. “This demand for the ‘no-compromise network’ is clearly global and runs from small enterprises to large multinationals. Customers are ready for an alternative to the outdated and proprietary offerings that are too costly to purchase and difficult to manage. We have validated our approach by introducing H3C outside of China in select markets in Asia Pacific, Latin America and EMEA and we are encouraged by the receptiveness large enterprises have shown in adopting the new H3C enterprise portfolio.”

“There is more scrutiny of enterprise networking vendors by IT leaders than ever before as they make getting more value from their networking investment a top priority,” said Mark Fabbi, vice president – distinguished analyst, Gartner. “Enterprises are searching for vendor options to provide lower TCO and easier management and deployment while fulfilling their need for continued high performance and reliability.”

At the foundation of 3Com’s enterprise networking strategy is a mandate to deliver unmatched price/performance and a new approach to customer relationships. Three tenets drive this strategy:
1. Design solutions that lower TCO: The H3C portfolio of solutions has been designed and built over the last four years, incorporating the latest in merchant silicon and energy efficiency, as well as a common management platform;
2. Architect future-proof products: The H3C solutions are based on open standards and leverage common hardware and software systems to help solve today’s problems while allowing the flexibility to adapt to future technology enhancements; and
3. Deliver a new level of customer intimacy: 3Com has made responsiveness and flexibility a priority, underscored by the stability of a $1.3 billion, profitable, global organization. Elite partners authorized to sell H3C products will also help elevate the level of customer service and support.

Expanding 3Com’s H3C Enterprise Networking Portfolio
As part of today’s announcements, 3Com is expanding the H3C portfolio of edge-to-data center solutions with two new switching platforms, the H3C S12500 for end-of-rack in data centers and the first-of-its-kind flex-chassis switching platform, the H3C S5800 for wiring closets, smaller network cores and top-of-rack in data centers. All of the products announced today, as well as 3Com’s complete H3C portfolio of products, are manageable by the new H3C Intelligent Management Center (IMC)—a single-pane management platform that allows for the effective integration of traditionally separate management tools, providing complete management of resources, services and users.

While today’s announcements underscore its increased emphasis on larger enterprises, 3Com already is the second largest enterprise networking provider in the world in terms of switches (ports) and routers (units), according to IDC. 3Com plans to aggressively expand this solid foundation, which largely has been driven by its leadership in China. With more than 30 percent market share in China, 3Com is supporting many of the country’s most prominent companies and organizations who have deployed H3C enterprise networking solutions to help run their business, including:
· Bank of China;
· Projects associated with the Beijing Olympics;
· SINOPEC, one of the major petroleum companies in the country;
· CHALCO, the largest alumina producer in China;
· Beijing Capital International Airport;
· National Grand Theatre;
· Baidu, Inc. the largest Chinese language Internet search provider; and
· Peking University.

These customers selected H3C enterprise networking solutions after reviewing and testing comparable products from other networking providers. Determining factors in their purchasing decisions were the ability to meet key requirements ranging from a lower total cost of ownership to energy efficiency to ease-of-management; the company’s clear enterprise networking expertise and responsiveness; and its fresh, new high-performance product portfolio.

During the last six months, 3Com selectively introduced H3C enterprise networking solutions in select countries in EMEA, Latin America and Asia Pacific, and is finding a positive reception, especially among value- and performance-conscious customers. As a result, its H3C portfolio is already deployed at major enterprises, including:
· South Africa Department of Home Affairs;
· SNCF, the national railway of France;
· ToT (Thailand);
· Malaysian Administrative Modernization and Management Planning Unit (MAMPU);
· Samsung Fire and Marine Insurance (South Korea); and
· Instituto Mexicano del Seguro Social
· ETICE (Brazil).

The H3C enterprise networking portfolio will be sold by authorized H3C channel partners with demonstrated edge-to-data center experience and enterprise-class support capabilities. These partners will collaborate with 3Com’s enterprise sales teams to provide customers with a new level of responsiveness and enterprise networking expertise.

“The time is right for the enterprise networking status quo to change, and we believe the H3C portfolio is poised to be the impetus for that change,” Mao concluded.