3Com Hangs Up On Modems

3Com has announced plans to phase out
production of its dial-up modems and modem-based products, allowing it to concentrate on four main "high growth" areas - IP (Internet protocol) telephony, broadband access, wireless access and Web-based
systems.

Products due for the chop include Corebuilder, Pathbuilder and
Netbuilder, as well as the complete range of modems that the vendor
took on when it acquired US Robotics in the spring of 1997.

3Com CEO Eric Benhamou said that 3Com has historically been at the
forefront of major network technology changes.

"We're focusing on markets where we have established a leadership
position, while making strategic investments in new technologies and
partnering with companies that strengthen our offerings. In addition,
we're transitioning out of businesses that are no longer strategic to
3Com's future," he said.

According to a press release, "3Com intends to form a new
company with Accton and NatSteel Electronics, and will sell its
analog desktop and PC Card modem business to this new company.
The new company will research, design, market and sell Internet
access products, including U.S. Robotics-branded analog modems." The U.S. Robotics name will live on under a separate entity, just not under the
3Com umbrella.

3Com's move out of the modem business shocked many in the
communications industry. Zoom Telephonics, which took on the Hayes
brand of modems last year, said it had no plans to cease its own
production of Zoom and Hayes-branded modems.

Frank Manning, the firm's president, said that Zoom has cultivated
its customer base and reseller channels for over 20 years.

"We will continue to support our Zoom and Hayes brand modem customers
and will continue to develop new modem products, including dial-up
modems compliant with the anticipated V.92 standard," he said.

"We believe that the relationship that we have with our current
customers and industry partners will be a significant competitive
advantage in launching new cable modem, DSL (digital subscriber line)
modem, wireless LAN and home networking systems," he said.

3Com's Web site is at http://www.3com.com.

Zoom's Web site is at http://www.zoom.com.