Microsoft and Farallon Form Technology-Sharing Alliance For NetMeeting-Compatible Solutions

REDMOND, Wash., and ALAMEDA, Calif., May 6, 1997 — Microsoft Corp. and Farallon Communications Inc. today announced they are forming an alliance to jointly develop and promote interoperable, cross-platform Internet collaboration products. Farallon has integrated Microsoft® NetMeeting
™conferencing software 2.0 with its Netopia Virtual Office software for the Windows® 95 and Windows 3.x operating systems. In addition, Farallon has agreed to develop NetMeeting-compatible data conferencing capabilities for Macintosh users.

The agreement expands a strategic relationship first announced in October 1996. As part of the October agreement, Microsoft licensed Farallon’s cross-platform screen-sharing patent covering all major desktop operating systems.

“Together, Microsoft and Farallon are committed to developing and promoting cross-platform communication and collaborative Internet products,” said John Ludwig, vice president, Internet client and collaboration division at Microsoft. “By combining their expertise, Microsoft and Farallon will deliver superior standards-based collaboration products to our respective customers worldwide.”

Cross-Platform Collaboration

Netopia Virtual Office is the first software application that allows Windows-based Internet and corporate intranet users to open a virtual office on the Web where they can communicate and collaborate in real time. NetMeeting 2.0, which includes videoconferencing in addition to Internet telephony and dataconferencing, expands the capabilities of Netopia Virtual Office by providing standards-based point-and-click videoconferencing over the Internet or corporate intranets.

Customers can obtain Netopia Virtual Office for $49.95, electronically downloadable from Farallon’s Web site (http://www.farallon.com/) Current Netopia Virtual Office customers can upgrade to NetMeeting 2.0. The version of Netopia Virtual Office for the Windows NT Ò operating system with NetMeeting 2.0 integration is expected to be available in summer 1997.

“Netopia Virtual Office is an excellent example of how the NetMeeting platform can be used to help customers improve communications over the Internet,” Ludwig said.

The agreement also calls for Farallon to develop NetMeeting-compatible data conferencing software for Macintosh users. This capability, which is expected to be available by spring 1998, will be integrated with Farallon’s award-winning Timbuktu software, enabling Timbuktu Pro Macintosh users to participate in cross-platform application-sharing sessions with users of NetMeeting and Windows. This capability will be T.120-based for both corporate intranet and public Internet collaboration. For example, a Macintosh-based advertising agency could review graphic advertising concepts in real time with its clients using Windows and running Microsoft NetMeeting, thus saving significant time and money.

Robust, High-Speed Solutions

As a result of cooperative work between the two companies, NetMeeting 2.0 conferencing software has been certified interoperable with Farallon’s entire family of Netopia Internet routers and ISDN modems. The Netopia product family is fully compatible with Microsoft NetMeeting standards-based protocols, including T.120 and H.323. Microsoft and Farallon plan to jointly promote conferencing with NetMeeting over high-speed ISDN Internet connections.

“By working in tandem with Microsoft, we are dramatically expanding the market for high-speed standards-based collaborative applications across corporate intranets and the public Internet,” said Alan Lefkof, president and CEO at Farallon. “We expect the widespread acceptance of the NetMeeting platform to fuel the demand for Netopia Internet products.”

About Farallon

Founded in 1986, Farallon Communications Inc. (NASDAQ “FRLN”) develops complete, easy-to-use Internet connectivity solutions and real-time Internet and intranet collaboration software. The company’s products are designed to increase the productivity and efficiency of Internet, intranet and LAN users and to target remote offices, home offices, mobile users, small businesses and schools that may not have access to sophisticated technical support. Further information can be obtained via phone, (510) 814-5000, fax, (510) 814-5023, Internet, info@farallon.com, or Web, (http://www.farallon.com/) Farallon products are available through distributors and resellers worldwide, as well as through licensing relationships with other computer vendors. Farallon has its headquarters in Alameda, Calif., and its European office in Paris.

Portions of this release may contain forward-looking statements. Farallon’s actual results could differ materially from the results discussed in this release. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including, without limitation, risks related to delays in product development and new product introductions, rapidly changing technology and competitive environment, foreign operations, and general economic conditions. Each of these factors, and other important risk factors, are discussed in the company’s public filings with the United States Securities and Exchange Commission (SEC). These reports are available from the company by calling our investor relations hot line at (510) 814-5260 or by contacting the company by e-mail at investor_relations@farallon.com. The company’s United States Securities and Exchange Commission filings are also available on the SEC Web site at (http://www.sec.gov/)

About Microsoft

Founded in 1975, Microsoft (NASDAQ
“MSFT”
) is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.

Microsoft, NetMeeting, Windows and Windows NT are either trademarks or registered trademarks of Microsoft Corp. in the United States and/or other countries.

The Farallon logo design and Farallon are registered trademarks, and Netopia is a trademark of Farallon Communications Inc.

Other product and company names herein may be trademarks of their respective owners.

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