Xircom Purchases Rex® Product Line from Franklin Electronic Publishers Wednesday 29 September 1999 Future Rex Version to Incorporate RSA SecurID® Technology for the Enterprise Market Xircom UK Ltd, (Nasdaq: XIRC), the leading provider of mobile access solutions for PC users worldwide, today announced the company’s purchase of the Rex product line from Franklin Electronic Publishers (NYSE: FEP). Expanding its wide range of mobile information access solutions, Xircom plans to design future versions of the Rex product for the enterprise market by incorporating new applications including security capabilities, web clipping and wireless connectivity. Under the terms of the agreement, Xircom will pay $13.25 million for selected assets of the Rex product line, including intellectual property, inventory and fixed assets. This transaction will be accounted for as a purchase and Xircom expects to incur a charge to earnings related to the write-off of purchased in-process research and development of approximately $3 to $4 million for the quarter ended September 30, 1999. The company expects the transaction to be accretive to earnings within the first year of operations. The purchase has been approved by the board of directors of each company. "The Rex solution is an innovative wearable information accessory that is focused on doing one thing well: making personal data readily available in a size that is truly an ‘unconscious’ carry," said Dirk Gates, chairman, president and CEO of Xircom. "The Rex fits well as one of Xircom’s mobile information access solutions. Going forward we will continue to expand the Rex capabilities through industry partnerships with the goal of enhancing individual and corporate productivity by enabling mobility." Leveraging the Investment for Future Expansion. Xircom plans to leverage its acquisition of the Rex product line to create tailored solutions for the enterprise and build industry partnerships to enhance the product’s functionality. Through a relationship with RSA Security, Inc. (Nasdaq: RSAS), a leading provider of Internet security solutions for e-business worldwide, Xircom plans to introduce an enterprise version of the Xircom® Rex® that combines the current information management capabilities with RSA SecurID technology to offer two-factor, user authentication for corporate networks. "As a large RSA Security customer, one of our challenges is that many of our employees carry multiple computing devices to address all of the functionality that they need," said Rod McGeary, vice chairman, KPMG Consulting. "Combining Rex personal information management functionality with the RSA SecurID authentication technology means we have to carry one less gadget. This solution will help us increase our network security and realise further value for our mobile technology investments." Xircom Wearable Information Accessories. Xircom will position Rex as the leading "wearable information accessory", offering users compact products and personalised applications that deliver focused functionality. The Rex product line will retain its well-established brand name under the Xircom umbrella. Xircom Rex solutions are currently available through leading retail channels. "As the designer and developer of the TrueSync(TM) Technology platform for the Rex, we look forward to partnering with Xircom to create future generations of the Rex product line," said Philippe Kahn, CEO and chairman, Starfish Software, wholly-owned subsidiary of Motorola (NYSE: MOT). "Xircom is perfectly positioned to maximise the potential of the Rex solution and ensure that Starfish and Xircom’s joint vision of the Rex product line is fully realised." --- About Xircom, Inc. For over a decade mobile professionals around the world have relied on Xircom for access to their information anytime, anywhere. Xircom designs and develops innovative solutions that connect mobile users worldwide to corporate networks, the Internet, Intranets and other online resources. Xircom sells and supports its products in over 100 countries through distributors, resellers, electronic channels and global OEM partnerships. Headquartered in Thousand Oaks, Calif., with regional headquarters in Belgium, Japan and Singapore, Xircom has 1,300 employees worldwide and trailing four-quarter revenue of $385 million. Please visit www.xircom.com for more information.