3Com Announces Close of Huawei-3Com Co., Limited Acquisition

3Com Corporation (NASDAQ: COMS) reported that its acquisition of Huawei Technologies' 49 percent stake in Huawei-3Com Co., Limited for US$882 million officially closed and 3Com now owns 100 percent of the China-based company. To fund the transaction and related fees and expenses, 3Com used approximately US $470 million of cash from its balance sheet and approximately US $430 million from a senior secured bank loan at its Huawei-3Com Co., Limited segment. "With 100 percent ownership of Huawei-3Com Co., Limited, 3Com significantly improves its long term growth profile and expands its global technology leadership position," said Edgar Masri, 3Com President and Chief Executive Officer. "With the transaction behind us, we can now focus our complete attention on integrating our sales and marketing efforts in Asia Pacific, capitalizing on Huawei-3Com Co., Limited's growth in China, and continuing to make progress in improving the financial performance of the combined company." 3Com won the right to acquire the remaining stake in Huawei-3Com Co., Limited through a bidding process that ended on November 28, 2006 and received the final required approval from the People's Republic of China on March 22, 2007. Additionally, members of Huawei-3Com Co., Limited's management team have signed two-year employment contracts that go into effect with the closing. Included in the agreement are bonuses tied to aggressive targets based on Huawei-3Com Co., Limited's future financial performance, as well as non-compete provisions. About 3Com Corporation 3Com Corporation (NASDAQ: COMS) is a leading provider of secure, converged voice and data networking solutions for enterprises of all sizes. 3Com offers a broad line of innovative products backed by world-class sales, service and support, which excel at delivering business value for its customers. Through its TippingPoint division, 3Com is the leading provider of network-based intrusion prevention systems that deliver in-depth application protection, infrastructure protection, and performance protection. 3Com also is the majority owner of Huawei-3Com Co., Limited (H3C). On March 22, 2007, 3Com announced that the company has received approval from the People’s Republic of China to acquire Huawei Technologies’ remaining 49 percent stake in Huawei-3Com Co., Limited and take full ownership, pending customary closing deliverables. Huawei-3Com Co., Limited brings innovative and cost-effective product development and manufacturing and a strong footprint in one of the world’s most dynamic markets. For further information, please visit www.3com.com , or the press site www.3com.com/pressbox . For more information please contact: Tom Van Blarcom / Maetavarin Maneekulpan TQPR (Thailand) Co., Ltd. 02 260 5820 Email: [email protected] Utaiwan Teachajaroenkul 3Com (Thailand) Co., Ltd. 02 231 8154, 081 840 1061 [email protected] Click for photo release at www.thaipr.net

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