Cabletron Teams With Hypercom on Voice-over-IPSolutions.

PHOENIX--(BUSINESS WIRE)--June 4, 1999--

Combining complementary strengths to advance their respective Voice-over-IP (VoIP) offerings, Cabletron Systems (NYSE:CS) and Hypercom Corp. (NYSE:HYC) are joining technological and marketing forces. As part of a new OEM (Original Equipment Manufacturer)

agreement, Cabletron will resell VoIP gateways from the Network Systems division of Hypercom Corp., expanding its own solution set while augmenting Hypercom's worldwide distribution. Hypercom's proven IP Telephony products support and combine voice, fax, video and data using LAN or WAN backbone network architectures.

Cabletron's SmartSwitch Router platform and Hypercom's enterprise and carrier-class VoIP solutions are noted for providing maximum reliability, high voice quality and optimal Quality of Service at Layers 3 and 4. The two companies will demonstrate joint VoIP applications at Supercomm 99 in Atlanta, June 7-10.

Extending the Reach of VoIP

"This strategic alliance with Cabletron expands our presence in the enterprise voice/data integration market," says Hypercom Network Systems President Paul Wallner. "Our packetized voice technologies have been very successful in that market for years, and leveraging Cabletron's worldwide coverage and leading service and support organization will help us extend proven technology to more organizations faster."

P. G. Menon, Sr. Director of Product Management at Cabletron agrees, "Both companies are aggressively pursuing the many dimensions of the VoIP market." Menon says, "Our respective expertise in deploying and servicing some of the largest networks in the world signals a great fit, and joining forces will help us build world-class customer solutions, and market presence, even faster."

Cabletron will OEM Hypercom's complete voice product line which support data, voice, and fax-over-IP services, and feature industry acclaimed Quality-of-Service (QoS) techniques for prioritization and bandwidth optimization.

Hypercom: Technology and Experience

Hypercom works with service providers and enterprises worldwide to supply reliable IP networks for voice and converged networks. The IP.tel VoIP Gateways and new e-Telephony provisioning platforms furnish carriers with fully redundant architectures, and options for integrated billing, IVR, credit and debit card acceptance platforms, a full suite of e-Commerce applications, consulting and other business services. Hypercom recently has added the same high-quality VoIP capabilities to its enterprise product line to meet market demand.

Wallner says forging a relationship with Cabletron coincides with the evolution of the market for packetized voice. "We're seeing active interest in deploying IP telephony reach out from service provider networks to larger enterprises and beyond," he says. "IP has proven itself as a suitable and efficient voice transport. Users' main concerns now are developing smart integration and migration strategies, and assuring support for user applications. The combined depth and experience of a Cabletron/Hypercom alliance addresses these concerns head-on."

About Cabletron

Cabletron Systems, the premier provider of enterprise-class networking solutions, delivers dependable networks access and communications to millions of people worldwide. With scaleable products designed for Fortune 1000 enterprise networks, service providers and small businesses, Cabletron provides simple, reliable and cost-effective business solutions for the information age.

Cabletron's web site can be reached on the Internet at http://www.cabletron.com.

About Hypercom

Hypercom Corp. (NYSE:HYC) is a global leader in electronic payment, networking and electronic commerce. With two decades of vision and innovation, Hypercom consistently focuses on increasing customer profitability through technological solutions that deliver greater functionality and scalability. Hypercom helps the world's largest telecom carriers, banking and financial organizations, retail chains and credit card corporations take maximum advantage of technology evolutions such as those now occurring via the Internet. Headquartered in Phoenix, Hypercom Corp. has distribution in close to 70 countries worldwide and annual sales of approximately $300 million. Visit Hypercom's Web site at www.hypercom.com/netsys.

Certain matters discussed within this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although management of Hypercom believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include industry, competitive and technological changes; risks associated with international operations and foreign currency fluctuations; the composition, timing, and size of orders from and shipments to major customers; inventory obsolescence; market acceptance of new products and other risks detailed from time to time in Hypercom's SEC reports, including the company's 10-K dated September 28, 1998.

The Integrated Enterprise Network is a trademark and Hypercom and the Hypercom logo are registered trademarks of Hypercom Corporation. All other products or services mentioned in this document are the trademarks, service marks, registered trademarks, or registered service marks of their respective owners.