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3Com makes remarkable things happen effortlessly with capability-rich networking products and solutions that simplify how people communicate with each other and share information. Starting with the industry's first Ethernet interface devices two decades ago, 3Com technology now connects more than 300 million people worldwide. Focusing on consumers, small to midsize commercial locations, and communications carriers and providers, 3Com enriches people's networking experience in the areas of home networks and gateways, Internet appliances, broadband Internet access, local area network (LAN) and mobile access, business LAN telephony, wireless mobility, high-speed LANs, and carrier-class platforms delivering IP telephony, wireless and broadband services. The company also offers network service and support for businesses and consumers. Today's economy is all about linking, conversing, sharing and exchanging. 3Com is building a world where effortless communication and information access is available anytime, anywhere, to everyone. By radically simplifying how people connect, 3Com helps people accomplish more. 3Com's Markets 3Com serves three key markets: consumer, commercial and carrier. Consumer. 3Com improves life for home network users, telecommuters and mobile users with rich, simple networking products that open the way to information, entertainment and increased personal productivity. The company brings the benefits of the digital home within reach of everyone with economical solutions that give residents quick, sure, secure Web access and let them share files and peripherals. 3Com's consumer products and solutions include broadband cable and digital subscriber line (DSL) modems, home network devices and kits, home gateways, Internet appliances and services. Commercial. Small and midsize businesses can't afford to spend time and resources dealing with networking complexity. Similarly, multisite enterprises must be able to tightly link their remote sites and branch offices to central locations so they can unify business operations. For these commercial customers, 3Com delivers high-performance, cost-effective, easy-to-own network solutions that make it simple for employees to communicate with co-workers, set up efficient business relationships and supply chains with partners, and reach out to customers on a one-to-one basis. 3Com offers secure, universal connectivity for workgroups in organizations of any size, with an emphasis on business LAN telephony, wireless mobility, high-speed LANs, broadband Internet access, LAN and mobile access, and Web appliances. Carrier. The carrier and service provider sector ranges from traditional phone companies to new entrants specializing in high-speed data, wireless and cable communications. 3Com supplies these companies with network solutions that open new business opportunities and help them establish unique positions in a competitive marketplace. 3Com's versatile, scalable platform architecture makes it possible for carriers to integrate their existing infrastructures with innovative technologies that deliver an array of IP-based services to their customers. 3Com multiservices carrier platforms support enhanced data, IP telephony, wireless access, cable access and DSL access systems. Competitive Position 3Com carries forward a long tradition of networking market leadership with number-one competitive positions in residential broadband products, small business networking, telephony based on Internet protocols, total Ethernet connectivity, remote access and wireless solutions for carriers and service providers. 3Com stands out as a premier networking innovator with 378 patents awarded to date, more than any other data networking company. Global Reach 3Com is a global company with 9,200 employees located in 174 offices in 48 countries on 6 continents. The company has manufacturing facilities in The Republic of Ireland; Israel; Singapore; Marlboro and Andover, Massachusetts; and at the corporate headquarters in Santa Clara, California. 3Com Service and Support Centers are located in Asia/Pacific Rim, Europe, Latin America and in the U.S. in Santa Clara and Chicago. 3Com Headquarters Leadership Board of Directors 3Com's Products and Solutions 3Com home networking brings all the advantages of an Ethernet LAN to families and home office users, while simplifying installation, set-up and maintenance. Economical 3Com home gateways, designed specifically for the home environment, manage the digital home and provide shared broadband or analog Internet connections along with firewall protection. And with 3Com Internet appliances, people can enjoy simple, push-button access to the Web, their e-mail, a personal calendar and other useful applications from virtually anywhere in the home. 3Com's broadband Internet access products include a full suite of DSL and cable modems for consumers, and multiuser routers for small network locations. Leading-edge broadband connectivity is also provided by 3Com's stackable remote access products and carrier-class multiservice access platforms. 3Com's LAN and mobile access products — including desktop and server network interface cards and wired and wireless LAN and LAN+modem PC Cards — deliver industry-leading performance, reliability and intelligence. In the area of business LAN telephony, 3Com was the first to deliver flexible voice/data/video convergence to small companies with Ethernet/IP-based systems that can transmit voice in digital form across local and wide area networks. 3Com's market-leading LAN telephony systems give small businesses a rich set of communications features typical of much more expensive PBX systems. 3Com is also integrating telephony capabilities into stackable LAN systems. On the exciting new wireless mobility front, 3Com's systems free LAN users by extending high-speed wireless connectivity to conference rooms and other business spaces that up until now haven't been accessible to the network. 3Com supplies installation and management tools that lessen complexity and lower costs for smaller businesses that want to go wireless. 3Com's high-speed LAN products and systems give small to midsize commercial locations Gigabit Ethernet performance and a rich array of LAN functions. Easy to scale and manage, these systems provide features critical to effective e-business operations, such as firewall protection, secure data encryption and load balancing. 3Com is at the forefront of carrier-class platforms with robust, software-upgradable solutions that can be integrated seamlessly into carriers' and providers' existing network infrastructures. 3Com is among the top three vendors of carrier-class IP telephony equipment, according to Cahners In-Stat Group. With 3Com solutions, carriers and service providers can achieve economical migration to a packet-based, converged network that reduces time-to-market when they want to deploy new revenue-enhancing services — including enhanced data, IP telephony, wireless access, cable access and DSL access. In addition, 3Com offers a comprehensive suite of network services that help companies succeed by making their networks more efficient, reliable and responsive to fast-changing business conditions. The company is also partnering with Web content providers to deliver services to the consumer sector. For complete descriptions of 3Com's products, solutions and services, see the Products area of the 3Com Web site or refer to the current 3Com Buyer's Guide. Key Mergers and Acquisitions
3Com's Business Profile 3Com's sales for the fiscal year ending June 2, 2000 (excluding Palm) totaled US$3.4 billion. Market capitalization has grown from US$385 million in January 1992 to US$20 billion in June 2000. 3Com is one of the 100 largest companies in Nasdaq; the company's common stock is publicly traded under the symbol COMS. Copies of Form 10-K or other financial information may be obtained from 3Com Investor Relations by calling 1-877-463-6326 inside the U.S., or 703-386-9710 outside the U.S. The e-mail address is: investor_relations@3com.com 
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