Proxim Acquires Farallon
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Proxim Acquires Farallon

FOR IMMEDIATE RELEASE

Proxim Acquires Farallon, A Leading Developer of Plug-and-Play Networking
Solutions for Macs and PCs

Acquisition to Strengthen Proxims Position in Home Networking and
Education Markets and to Expand Macintosh Compatibility

SUNNYVALE, Calif., June 19, 2000 Proxim Inc., (NASDAQ: PROX), the leader
in wirefree broadband networking, announced today that it has acquired
privately held Farallon Communications, Inc. of San Leandro, California, a
leading developer of plug-and-play networking solutions for Macintoshes and
PCs. Through this acquisition, Proxim will strengthen its offerings for the
home networking, small business, publishing and education markets.
Farallons line of networking products for PCs and Macs will complement
Proxims PC-based wirefree networking solutions.

In addition to extending Proxims overall penetration in key sectors
including the home, small office, public and private enterprise and
broadband service provider markets, Farallon expands Proxims reach by
bringing HomePNA and Ethernet products into the companys portfolio. The
Farallon division will continue to develop and support the Farallon
cross-platform product lines, which include: * HomeLINE: HomePNA-based
networking products for Internet, game, file and printer sharing for Mac
and PC users in the home. * SkyLINE: IEEE 802.11b-compliant wireless home
and small business networking solutions for Mac and PC users. * NetLINE:
Wired 10/100 and Gigabit Ethernet connectivity solutions for Mac and PC
users in the home, small office, publishing and education markets.

Under the terms of the transaction, Proxim purchased Farallon for 121,654
shares of Proxim common stock worth approximately $10 million, and $4
million in cash. The acquisition will be accounted for as a purchase
transaction.

"Through the acquisition of Farallon we are further extending our reach in
the home, small office, public and private enterprise (including education)
and broadband service provider markets, where there is currently a huge
need for broadband networking solutions. We are also adding a vital
component to our product offeringsMacintosh compatibility," said David C.
King, Proxim's chairman, president and CEO. "We believe that Farallons
products not only complement our existing product lines, but also extend
our wirefree broadband networking capabilities."

"We are very excited about the combination of Farallon and Proxim," stated
Richard Maslana, president and CEO of Farallon Communications, Inc. "We
expect that the joined companies will provide our customers with
significantly improved sales and marketing reach through the
well-established Proxim retail and VAR/distributor channels worldwide, and
access to many exciting new product opportunities through Proxims wirefree
broadband networking development expertise."

Georganne Benesch, former executive vice president of Farallon, will serve
as vice president and general manager of Proxims growing home and small
business broadband networking sector. Farallon CEO and president, Richard
Maslana will assist Benesch in the transition.

Mr. King added, "We look forward to integrating Farallons team of highly
talented staff members and benefiting from Farallons 14 years of
experience in the market. This is yet another step in our efforts to
innovate the best products and meet the increasing customer demand for
broadband networking products."

This announcement follows two recent acquisitions by Proxim. In January
2000, Proxim announced its acquisition of Microlor, Inc. a leader in
developing unlicensed spread spectrum wireless technology. (See the news
release dated January 25, 2000.) In December 1999, Proxim announced its
acquisition of Wavespan, a developer of wireless broadband access
solutions. (See the news release dated December 28, 1999.) All three
acquisitions add to the technology base and market reach of Proxim.

About Farallon Communications
Founded in 1986, Farallon develops and markets reliable, plug-and-play
networking products designed to simplify networking through innovation.
With over 8 million customers worldwide, Farallon is dedicated to providing
complete, easy-to-use networking solutions and world-class technical
support to the Home, Small Business, Publishing and Education communities.
Farallon offers a complete line of network cards, adapters, hubs and
switches. Further information can be obtained via phone 510.346.8000, web
site (http://www.farallon.com/) or email (mailto:info@farallon.com). The
Farallon headquarters are in San Leandro, California, with a European
office in the UK and an Asia Pacific office in New Zealand.

About Proxim
Proxim, Inc. (Nasdaq: PROX) has over 15 years of experience designing and
building wirefree broadband networking solutions. Proxims Symphony is the
world's leading wirefree networking product for the home and small office
and the companys RangeLAN2 leads in the enterprise, OEM and wireless
service provider markets with nearly one million installed units. For
building-to-building broadband networking, Proxims Stratum is the fastest
license-exempt wirefree Ethernet bridge, connecting buildings at distances
up to seven miles. Proxim is also a founding member of the Wireless LAN
Interoperability Forum (WLI Forum), and a core member of the Home Radio
Frequency Working Group. The company is headquartered in Sunnyvale,
California with offices globally. Visit www.proxim.com for more information

 

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