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August 9, 2006
MARLBOROUGH, Mass. -- 3Com Corporation (NASDAQ: COMS - News) today announced that the company's Board of Directors has appointed Edgar Masri as the new President and Chief Executive Officer (CEO) to replace Scott Murray who submitted his resignation effective at the close of business on August 17, 2006. The company also announced that it has hired Bob Mao as Executive Vice President of Corporate Development to manage 3Com's interests in its China-based joint venture with Huawei Technologies, Huawei-3Com (H-3C).
Masri, who is currently the Chief Operating Officer for Redline Communications, a broadband technology company, and Mao will join the company on August 18, 2006. In addition to his role as President and CEO, Masri will assume Murray's position as Chairman of H-3C. In his new role, Mao, a widely recognized and highly regarded networking executive, based in China, will be a member of H-3C's Board of Directors and report directly to Masri. Mao currently is Vice Chairman of the Board of Governors of the Pacific Telecommunications Council. Consistent with its plan to further leverage H-3C to help increase shareholder value, 3Com also today announced that it will begin negotiations with Huawei with the intent to increase 3Com's ownership stake in H-3C. 3Com currently owns 51 percent of H-3C and recently began consolidating H-3C's financial results. Under the terms of existing agreements, each party has the right, commencing on November 15, 2006, to initiate a bid process to purchase the equity interest in H-3C held by the other. These negotiations are intended to result in an agreement outside of the bid process.
"Our joint venture in China is a growing and profitable enterprise that we believe can be an important cornerstone of 3Com's future," said 3Com Chairman, Eric Benhamou. "We intend to negotiate a mutually beneficial agreement that increases 3Com's stake in H-3C and promotes H-3C's continued success."
Benhamou added, "After gaining additional insight into the significant time commitment and attention necessary to successfully manage H-3C, Scott Murray advised the Board that, with his young family, he was not able to commit to the extended time in China the venture requires. He therefore believes it is in 3Com's best interest for him to resign at this time, before negotiations begin. The Board respects his decision and thanks Scott for taking steps to bring the company closer to profitability.
"We are very fortunate to be able to recruit Edgar Masri to lead the company. Edgar has extensive networking industry knowledge, broad international experience and a track record of success throughout his career. Edgar brings unique skills and experiences that we believe will be of great value to 3Com."
3Com Corp. (Nasdaq: COMS)
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