Effnet shares custom-tailored network maximizing technology with chip manufacturers

EFFNET SHARES CUSTOM-TAILORED NETWORK MAXIMIZING TECHNOLOGY WITH CHIP MANUFACTURERS Swedish Innovator Introduces Software-Based Routing and Firewall Technology at Hardware Level MOUNTAIN VIEW, CA - March 14, 2000 - Today Effnet, a leading provider of efficient network solutions, announced that their award-winning IP packet- processing technology will be made available to semiconductor manufacturers. By using Effnet's algorithms, these chip companies will be able to incorporate optimal routing and security, while reducing overall system costs and increasing system performance. Instead of sacrificing speed for security, or vice versa, the resulting chips will offer the best of both worlds to network equipment manufacturers. Technology Effnet's patented algorithms allow for information packets to be routed with high efficiency by reducing the number of memory accesses for every routing table lookup and reducing the requirements for external memory. The technology offers several unique and desirable benefits - as a software algorithm incorporating routing and firewall features - that fully exploit the potential of existing networks. According to Eric Hindin of the Yankee Group, "In terms of both performance and time to market, Effnet's software approach provides a remarkably fast and flexible enabling technology to networking product providers." Effnet has received additional industry attention for their innovative technology. Last fall the company received Europe's prestigious IST Grand Prize, given to outstanding information technology companies. In the United States, KeyLabs of Lindon, Utah recently conducted a FireBench test and reported that Effnet's firewall was the fastest firewall they have tested. The FireBench results showed that Effnet's filtering algorithms do not reduce the packet throughput of a firewall/router. Partnerships For the first time, Effnet will begin to license the technology to the worldwide networking market. Initially, Effnet is targeting a select group of network processor and communications chip companies to form OEM partnerships through a recently initiated Technology Partner Program. These partnerships will result in Effnet's technology being integrated into silicon - designed, manufactured, and marketed by each of the partners. The company is already in final negotiations with several partners. "We anticipate that these partnerships will stretch over the sales life cycle of the chip in question, for example three to four years," said Michael Säw, CEO Effnet Inc. "The kinds of relationships we are forging describe close interactions over time, covering multimillion dollar involvements." Entering into a partnership with Effnet will grant partners access to Effnet's networking technology. Additionally, partners will be guaranteed an unprecedented level of performance, being that the Effnet technology will be custom designed and incorporated into the partner's products. "Through the Technology Partner Program we will be able to effectively offer our technology to partners based upon the existing performance needs of their products," said Tomas Althén, CEO Effnet Group. "Through cooperative ventures we can guarantee that our software will easily integrate with the hardware of our technology partners." The Technology Partner Program provides for the joint development and marketing of integrated communications building blocks. These products will be of interest to anyone who is building IP-capable devices, such as network equipment manufacturers, network appliance vendors, mobile computing providers, etc. About Effnet Effnet offers networking technology that provides optimal efficiency, security and flexibility. By using highly efficient algorithms and data structures, Effnet breaks conventional performance barriers for routing table lookups and filtering operations, delivering low cost, high performance networking and telecommunications components and solutions. Effnet is a public company, listed on the Stockholm Stock Exchange's New Market, symbol EFFN. The company was founded in 1997, with research and development based in Luleå, Sweden. Currently at fifty employees, the company is expanding rapidly. In 1998, the company opened sales and marketing offices in Boston, Massachusetts and an additional office in Stockholm. In January 2000, the company also opened an office in Mountain View, California. The company's technology has been field tested and proven via a line of router and firewall products currently marketed in Sweden and other European countries. The success of Effnet's technology is reflected by top industry awards and the growth of its stock by 824% in 1999. For more information about Effnet, please contact Tomas Althén, Effnet Group at +46 708 15 16 15 or e-mail tomas@effnet.com or Jamil Moledina, PR@vantage at (415) 288 0400 or e-mail jamil.moledina@pr-vantage.com, or visit the website at www.effnet.com. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/03/14/20000314BIT00060/bit0001.doc http://www.bit.se/bitonline/2000/03/14/20000314BIT00060/bit0002.pdf