Madge Networks Gets $60 Million Funding

Madge Networks announced agreements with Volendam Investeringen N.V. that provide for $60 million of new funding over the next few months.

Volendam Investeringen is making a direct investment of $30 million in Madge Networks N.V., and is committing to invest $30 million in Madge.web N.V., a subsidiary of Madge.

The investment by Volendam in Madge Networks takes place in two stages. The first stage, concluded today, is a $10 million purchase of 3,137,254 common shares of Madge Networks (at a price per share of $3.1875, being the closing market price today July 26, 2000).

The second stage is a $20 million purchase of 6,274,509 common shares, to be effected not later than October 31, 2000 (also at a price per share of $3.1875). Shares acquired by Volendam will be unregistered, although Madge Networks has agreed to apply for US registration of the shares before the end of September, 2001, which would allow for potential resale to the public.

"We are extremely pleased to secure this additional funding," said Chris Bradley, CFO of Madge Networks N.V., "which allows us flexibility in accessing capital markets to cover our Group financing plans. With these funds committed, we can continue our ambitious investment plans in Madge.web as well as supporting the exciting development plans of Red-M, our wireless Internet subsidiary."