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Madge improves network health for the Rhone-Alps Regional Health Insurance Fund

High performance switched Token Ring network provides enhanced service performance for 2,500 network users at Caisse Regionale d'Assurance Maladie (CRAM)

Wexham Springs, UNITED KINGDOM (December 19, 2001) - Madge Networks N.V. (NASDAQ NM: MADGF) has completed a major upgrade project at Rhone Alps Caisse Regionale d'Assurance Maladie (CRAM), the French regional statutory pension and health insurance fund. CRAM has deployed Madge Smart Ringswitch Plus™ and Smart DeskStream™ switches to provide connectivity between its existing Token Ring infrastructure and its Ethernet network, creating a new, high performance, integrated switched infrastructure. The Madge solution will deliver centralised management and control of CRAM's network and increase availability of key systems, eliminating performance bottlenecks and enabling CRAM to meet user demands as network traffic increases.

The Madge solution was selected as part of a comprehensive project to upgrade CRAM's 2,500-user network and is designed to increase network bandwidth. The upgrade will optimise the company's existing Token Ring investments, whilst providing a platform for Gigabit Ethernet Server and Gigabit backbone connectivity in the future. CRAM has installed 40 Smart DeskStream workgroup switches and Smart Ringswitch Gigabit Uplink Modules for high-speed interconnection between the Token Ring and Ethernet networks. The solution will immediately deliver efficiency improvements, both between the servers and to the desktop, for CRAM's 2,500 network users.

"Last year some 28,000 pension and health cases were processed by CRAM and it soon became apparent that our existing network could not cope with the high volume of traffic that this generated," said Patrick Pignerol, Network and IT Support Manager, Rhone Alps CRAM. "CRAM needed a cost-effective way to improve network performance and Madge was the only solution that met with all of our criteria in terms of cost, performance and product support.

"The decision to interconnect the Token Ring networks through Gigabit Ethernet backbones - using the translation solutions embedded in the products - allowed us to better position the company both from a technical and efficiency point of view. Working with Madge was very productive and profitable for CRAM's statutory pension and health insurance fund - we now have a network that meets the performance and reliability our users expect and provides us with a network perfectly adapted to emerging technologies," added Patrick Pignerol.

About Caisse Regionale d' Assurance Maladie (CRAM)

CRAM consists of eight administrative departments that manage the workers' pension fund for the Rhone-Alps region, which represents a yearly payment of some FRF40 billion. Moreover, it handles the individual accounts of 9,000,000 social policyholders. Some 700,000 Social Data Annual Declarations forms (DADS) are reviewed each year to fund these accounts. The social welfare contribution of the Rhone-Alps CRAM amounts to more than FRF200 million a year in personal assistance to elderly people, contribution to housing conditions improvement, home help and special dependency benefit. Through its social service in every department, CRAM is involved in fighting health problems related to social exclusion by offering access to care, professional reintegration and home maintenance or return for elderly or disabled people. CRAM also develops a prevention policy against on-the-job accidents, accidents on the journey to or from work, and occupational diseases.

About Madge Networks N.V.

Madge Networks N.V. (NASDAQ NM: MADGF) is a global supplier of advanced networking product solutions to large enterprises, and is the market leader in Token Ring. Madge is pioneering next generation networking solutions, which enable the painless deployment of 100Mbps and Gigabit speed IP-based applications within existing corporate networks while protecting customers' investments in Token Ring. Madge Networks also has an associate company, Red-M™, a leading supplier of wireless networking product solutions. The Company's main business centers are located in Wexham Springs, United Kingdom and Manasquan, New Jersey. Information about Madge's complete range of products and services can be accessed at www.Madge.com.

Private Securities Litigation Reform Act Statement

Investors should take note that certain statements in this press release are forward-looking and may not give full weight to all of the potential risks e.g. difficulty of developing high technology products, changing industry standards, competition, the challenge of managing expenses to changing revenue and changed priorities and resource allocation resulting from these and other factors). Forward-looking statements in this press release include statements that refer to the delivery of a centralised management and control, the increased availability of key systems eliminating performance bottlenecks, enabling CRAM to meet user demands as network traffic increases and that the solution will immediately deliver efficiency improvements and other statements, which are not completely historical. Actual results, actions or events could differ materially. For more information on risk factors, please refer to Madge's SEC filings.

Madge, the Madge logo, Smart DeskStream and Smart Ringswitch Plus are trademarks, and in some jurisdictions may be registered trademarks of Madge Networks or its affiliated companies. Red-M is a trademark, and in some jurisdictions may be a registered trademark of Red-M (Communications) Limited. Other trademarks in this document are the property of their respective owners.

For further information, please contact:
In the UK:
Simon Drennan
Madge Networks
Tel: +44 1753 661 000
Email: simon.drennan@madge.com

Simon Gribbon
IBA, PR for Madge Networks
Tel: +44 1780 721 433
Email: sgribbon@iba-europe.com

(Wednesday, 19 December, 2001 )

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