Wexham Springs, UK (December 4, 2000) – Red-M™, a pioneering developer of Bluetooth™ networking solutions and subsidiary of Madge Networks N.V. (NASDAQ NM: MADGF), announces today a strategic alliance with Extended Systems (NASDAQ: XTND), a leading provider of mobile data management and wireless connectivity solutions. The alliance will see the two companies working together to further the development of innovative data and voice technology based on Bluetooth.

Red-M is a market-leading developer of Bluetooth networking products that provide rapid and secure transmission of data, voice and video communications over a wireless connection inside buildings and public concourses. The alliance will combine Extended Systems’ expertise in Bluetooth stack technology with Red-M’s knowledge of Bluetooth networking solutions.

Both companies will showcase their advanced technology during a Keynote Demonstration at the Bluetooth Developers’ Conference on Tuesday 5 December 2000 in San Jose, CA. Using Red-M’s recently announced 3000AS access server and Extended Systems’ XTNDAccess Bluetooth protocol software and XTNDConnect synchronization software, the demonstration will show how corporate users can connect securely to the Internet and Intranet, and the synchronization of data between a handheld personal digital assistant (PDA) and the 3000AS access server.

Don Baumgartner, Business Unit Manager for Extended Systems' Universal Mobile Connectivity division, says “We believe Bluetooth will become the standard in wireless communications, and Red-M and Extended Systems are providing the infrastructure to help make this a reality. We are very excited to be working with the industry leader in Bluetooth networking solutions.”

Simon Gawne, Vice President of Marketing and Business Development, adds, “We believe this emergent wireless technology has huge potential across many diverse market sectors and we are pleased to announce this alliance with one of the leading suppliers of core Bluetooth technology. Our combined expertise will help drive a very successful partnership.”

Red-M will demonstrate its award-winning Bluetooth networking products and technology at the Bluetooth Developers’ Conference, San Jose, 5-7 December, 2000, booth 413.