Red-M Extends Into German Marketplace

Wireless Internet Solutions Company Moves Into Europe's Largest Market

Red-M(TM), a pioneering developer of advanced wireless Internet server products and subsidiary of Madge Networks N.V (NASDAQ NM: MADGF), today announces that it is bringing its strategy for providing advanced mobile data, voice and video communications to the German marketplace.

Red-M's operations in Germany will be based in Neu-Isenburg and headed up by Volker Worringer, Country Manager Central Europe. The company plans to leverage Madge's existing infrastructure and strong market presence in Germany to accelerate its overall growth plans and generate new business.

"The core of Red-M's strategy is to extend the revolution in mobile communications into the workplace," said Mike Wilson, CEO of Red-M. "Following our successful demonstration of Red-M technology at the Bluetooth Congress in Monte Carlo, which generated a substantial amount of public interest, we have decided to launch into Germany. Technically, Germany is very advanced, particularly in wireless communications, and the potential for Bluetooth is huge. Our parent company, Madge Networks, has considerable knowledge and experience of the German marketplace which we will draw upon to help establish Red-M."

Red-M is developing a range of wireless Internet server products based on Bluetooth(TM) technology which will bring the power of mobile communications to the workplace. The products will provide reliable and secure Internet access from a wide range of mobile devices including PCs, mobile phones, personal digital assistants (PDAs), Wireless Application Protocol (WAP) smart phones and other emerging information appliances.

The first products from Red-M are due by the end of this year. The company has already presented the capabilities of its new technology and won the Bluetooth Innovation Award at the Bluetooth Congress 2000, Monte Carlo, 13-16 June 2000.

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