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VALLEY AND VENTURA COUNTY

IBM to Market Xylan Computer Equipment

June 23, 1998

Expanding on a lucrative partnership that dates back nearly three years, Xylan and IBM have announced an agreement under which IBM will market Xylan's new lower-cost computer networking equipment under the IBM brand name.

In addition, IBM will share with Calabasas-based Xylan a semiconductor chip technology that will help Xylan improve its product line.

IBM is the single largest customer of Xylan, which makes high-band-width switching systems used in computer networks. It already sells Xylan's OmniSwitch high-end computer networking equipment under the IBM brand name. The computer giant now will add the new OmniStack line of networking equipment.

A Xylan spokesman said IBM accounts for about 20% of the firm's sales.

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