GANDALF LAUNCHES STRATEGIC DIRECTION THROUGH INNOVATIVE TECHNOLOGIES

Gandalf Increases Breadth of Products and Total Turnkey Service Solutions
for Teleworkers and Internet Users

NEPEAN, ONT. -- MARCH 27, 1996, Gandalf Technologies Inc., a leading
supplier of remote access networking products, today announced its
statement of direction towards establishing market leadership in the
teleworking and Internet service provider marketplaces. This strategic
direction is being launched with the unveiling of new services, products
and technology enhancements that address the specific needs of teleworkers
and mobile users who require complete end-to-end solutions for accessing
corporate resources and the Internet. Gandalf now provides customers with
the most comprehensive range of remote access and concentration options
available on the market today, giving them the flexibility to choose the
exact level of performance, functionality, features and price that makes
sense for their individual applications. The new additions include the
following:

* REMOTECONNECT -- Gandalf's RemoteConnect service, a total turnkey
solution that makes it easy for companies and individuals to implement
teleworking by providing one stop shopping for all product and service
requirements;

* TECHNOLOGY ENHANCEMENTS -- support for a suite of new technology that
create a more powerful, higher density Xpressway central site concentrator
and includes support for high density V.34, Bandwidth Allocation Control
Protocol (BACP), improved security and a statement of direction to support
the Point-to-Point Tunneling Protocol (PPTP);

* ENCRYPTION -- the industry's first software encryption technology that
ensures the private transmission of data over remote links without
sacrificing performance;

* EXPANDED PRODUCT FAMILY -- an expanded XpressConnect family of remote
access devices that provide increased choice for companies by including
analog modems, ISDN and an integrated hub/router.

"Consistent with our strategy to establish market leadership and to focus
on emerging markets, we are unveiling a turnkey services solution, leading
technologies and an expanded product family to provide our customers with
complete end-to-end remote access solutions that allow them to select the
solution they desire at a price that is sensible for their business," said
Tom Vassiliades, chairman, president and chief executive officer for
Gandalf. "Today's announcements are a manifestation of the fundamental
changes we made eighteen months ago, to be a market-driven company and
meet our customers' requirements through Gandalf's Customer Value
Architecture."

TOTAL TURNKEY SOLUTION - REMOTECONNECT

Companies who wish to outsource the complexity of implementing teleworking
programs can choose Gandalf's RemoteConnect turnkey services solution.
RemoteConnect is an enhancement to Gandalf's premier customer support
which takes the complexity out of getting teleworking programs up and
running. With RemoteConnect, every aspect of teleworking implementation is
handled by Gandalf. RemoteConnect provides a single point of
responsibility for customers and includes such services as line order
management and provisioning, pre-delivery product set-up, installation and
on-going support services for Gandalf and OEM products.

"Our customers have been asking Gandalf for assistance in getting connected
with ISDN access. With RemoteConnect, we take the hassle out of getting up
and running on ISDN," said Richard Busto, vice president strategy,
business development and network services. "With our years of experience
combined with our ability to blanket North America with on-site resources,
we are able to offer Gandalf customers the industry's only true complete
turnkey ISDN installation service."

TECHNOLOGY ENHANCEMENTS - XPRESSWAY AND XPRESSCONNECT

V.34 SUPPORT

Gandalf's Xpressway now allows information systems managers and Internet
service providers to support and manage up to 120 simultaneous modem
connections through its new Modem Resource Module (MRM). This module
allows companies to support both their mobile users who use analog dial-up
as well as their teleworkers who prefer the high performance of ISDN
through a single connection on the Xpressway. In addition to increased
flexibility, this integrated solution provides companies with reduced
operational costs, a reduction in floor space, less cabling and simplified
management through a single console. Now the IS manager need only access
XpressView, a single MicrosoftR Windows-based console which comes standard
with the Xpressway, to monitor and manage not only modems but also the
total remote access environment. Gandalf's Xpressway central site
concentrator is now capable of supporting a wider range of connectivity
choices including ISDN, analog, T1/E1, frame relay, leased line and local
LAN.

FRAME RELAY

Today Gandalf introduces a new high performance frame relay remote access
solution -- Xpressway XBR 7202 router. The key differentiating advantage
of the XBR 7202 router module is its support of Gandalf's industry-leading
8:1 data compression, which significantly increases throughput on the
frame relay network and dramatically reduces both the usage and access
costs associated with frame relay connections. Xpressway's XBR 7202
provides centralized frame relay routing for companies who want
cost-effective, long distance data transmission for their remote access
users. With the introduction of the XBR 7202, the Gandalf Xpressway
central site concentrator supports ISDN, PSTN, leased line, switched
56/64, T1/E1 and now frame relay.

DUAL PORT PRI

Gandalf is providing its customers with higher port density through the
addition of a dual port Primary Rate Interface (PRI) module in its
Xpressway. This enhancement makes it more cost-effective for corporations,
Internet service providers and telephone companies to implement ISDN by
reducing the cost per port significantly. With the dual port PRI, the
Xpressway can now support up to ten PRI connections and 230 North American
(310 European) B channels.

BANDWIDTH ALLOCATION CONTROL PROTOCOL (BACP)

Gandalf has been very involved with the Internet Engineering Task Force
(IETF) in the development of the Bandwidth Allocation Control Protocol
standard and has implemented workable solutions which ensure ISDN users
have the full bandwidth available on demand. BACP is critical for Internet
service providers, telephone companies and large corporations who need to
optimize their use of ISDN lines and who require an unlimited
concentration of ISDN lines.

POINT-TO-POINT TUNNELING PROTOCOL (PPTP)

Gandalf is announcing its intent to support Point-to-Point Tunneling
Protocol (PPTP). This technology allows companies to set up Virtual
Private Networks (VPN) over the Internet, eliminating the need for a long
distance connection between remote locations. By integrating this into the
product families, Gandalf enables customers to take advantage of the
Internet's cost-effective networks.

SECURITY

Companies are concerned with the security of their data being transmitted
remotely. To address this requirement, Gandalf has now expanded the choice
of security options by implementing Digital Pathways, TACACS and Radius
user authentication in addition to the current implementation of SecurID.
Gandalf now offers a clear migration path as companies' requirements
change by offering a full range of security options through link security,
encryption and user authentication.

ENCRYPTION

Business applications are driving the need for data privacy over remote
links and companies are looking for cost-effective ways of securing their
information. Encryption technology ensures that data transferred over
remote links is private. As a technology leader, Gandalf is the first in
the industry to deliver encryption without any performance degradation by
integrating the new technology right into the data compression. Being a
software algorithm, Gandalf's implementation of encryption eliminates the
need for costly encryption hardware. This cost-effective, high-speed
encryption is available with all of Gandalf's Point-to-Point Protocol
(PPP) compatible remote access products.

"One of the big concerns companies have today is keeping their corporate
information secure, especially now that employees are accessing and
sending more information via public data services," said Paul Phillips,
manager of telecommunications engineering for Argonne National Laboratory.
"Encryption is an essential element in any company's overall security plan
and Gandalf's unique implementation of encryption, where it's combined
with Gandalf's data compression, ensures one more layer of security
without increased hardware costs or performance trade- offs."

"Over the years, teleworking has progressed from requiring a basic
connection to the corporate network to requiring a seamless, high
performance remote LAN connection.  Gandalf has provided companies with
industry-leading teleworking solutions every step of the way," said
Michael Chawner, vice president of product development and chief
technology officer. "In anticipation of the emerging trend of secure,
private connectivity, Gandalf has once again led the market by delivering
innovative encryption that provides remote access users with
cost-effective, private data transmission without any sacrifice to
performance."

EXPANDED PRODUCT FAMILY

Today's announcement expands Gandalf's XpressConnect family of customer
premise equipment, currently led by the award winning XpressConnect 5242i,
offering an exciting migration path for today's changing remote access
applications. By expanding the XpressConnect family to include analog
modems, digital modems and an integrated hub/router, Gandalf can now
provide end-to-end remote access solutions that meet a corporation's
entire remote access needs for their mobile users, teleworkers and remote
LANs. These products demonstrate Gandalf's commitment to satisfying our
customers' requirements and delivering innovative technology and
services.

XPRESSCONNECT 5100 FAMILY OF ANALOG AND DIGITAL MODEMS

Gandalf is introducing a complete range of analog and digital modems to
offer choice for end users who need access to corporate information and
public services. The XpressConnect 5100 family is fully compatible with
the Xpress family of central site concentrators. Gandalf's XpressConnect
5100 family includes the following:

 XPRESSCONNECT 5124 -- a stand-alone V.34 compatible modem for those
 who prefer the flexibility of a non-integrated unit,

 XPRESSCONNECT 5128 -- a V.34 compatible PC Card (formerly known
 as PCMCIA) for mobile users,

 XPRESSCONNECT 5130I -- an ISA/EISA Card for the teleworker who
 requires a cost-effective way to get the high performance of ISDN.

XPRESSCONNECT 5230 FAMILY OF COST-EFFECTIVE ISDN REMOTE ACCESS DEVICES

Gandalf's 5230 family of products address the needs of corporations and
service providers who need to provide their end users with a stand-alone,
cost-effective ISDN access to the Internet and corporate resources.

XPRESSCONNECT 5232I -- a single user, high performance ISDN bridge/router
with a variety of upgradeable feature options. The 5232i is ideal for
users who want high-speed access to the Internet or corporate data, the
performance of ISDN and the ability to connect a number of devices in
their home office. In addition, the 5232i is upgradeable with features
such as voice, compression and encryption, allowing a part-time teleworker
to start with a solution that meets their needs today and scale up as
their teleworking requirements increase in the future.

XPRESSCONNECT 5238I -- an integrated eight port 10BaseT Hub with a Gandalf
ISDN router which dramatically simplifies a small or home office's network
while providing the LAN connectivity for its internal network and the ISDN
performance for access to public services and corporate resources.

"To launch our new products and services we will be demonstrating many of
these new capabilities at the NetWorld+Interop trade show taking place in
Las Vegas from April 2-4," said Joceline Lemieux, vice president of
worldwide marketing. "Gandalf has committed an aggressive marketing plan
to support our strategy and is dedicated to providing merchandising,
pre-sales and training support to all our customers, resellers and
partners."

BACKGROUND

Gandalf's vision is to provide people with access to information through
technology. Gandalf provides leading solutions in network infrastructure
by connecting remote locations to central resources and designing and
supplying high speed backbones for data, video and voice transmission.
These offerings provide customers significant strategic advantage in
today's competitive world.

Gandalf markets its range of communications solutions in 75 countries
through subsidiaries and distributors, including Gandalf Canada Ltd.,
Gandalf Systems Corporation in the U.S., Gandalf Digital Communications
Ltd. in the U.K., Gandalf Netherlands, B.V., Gandalf S.A. in France, and
Gandalf International Ltd.

Common shares of Gandalf Technologies are traded on the Toronto Stock
Exchange (GAN) in Canada and on Nasdaq (GANDF) in the United States.

FOR FURTHER INFORMATION:

Richard Busto
Vice President
Strategy, Business Development and Network Services
Gandalf Technologies Inc.
(613) 274-6595
richard.busto@gandalf.ca

Alys Reynders/Craig Librett
Miller/Shandwick Technologies
(617) 536-0470
areynders@millercom.com
clibrett@millercom.com

Wendy Burgess
Investor Relations
Gandalf Technologies Inc.
(613) 274-6550
wendy.burgess@gandalf.ca
 
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