GANDALF STRENGTHENS STRATEGIC INITIATIVE WITH NEW PRODUCTS TARGETED AT THE
INTERNET AND SOHO MARKET

GANDALF INTRODUCES HIGH-PERFORMANCE, LOW-COST REMOTE ACCESS SOLUTIONS

NEPEAN, ONT. -- MAY 14, 1996 -- Gandalf Technologies Inc., a leading
supplier of remote access networking products, today reinforced its
strategic direction towards market leadership in the teleworking and
Internet service provider marketplace with the launch of three new remote
access solutions. These new offerings bring affordable entry level remote
access solutions to Internet Service Providers (ISP) and Operating
Telephone Companies (OTC) who are looking to expand their business, the
SOHO (Small-Office Home-Office) user who needs performance access to the
corporate office and individual users who want fast Internet access at a
price that makes sense.

The three new members of the Xpress family are in addition to the products
that Gandalf announced March 27, 1996. These new additions are:

* XPRESSSTACK INTERNET ACCESS SERVER (IAS) -- a high density central site
concentrator designed for the specific needs of Internet Service
Providers. XpressStack IAS supports both analog and high speed ISDN
connections in a completely integrated solution allowing ISPs to offer
their customers an increased choice of connection options, while realizing
the performance benefits delivered through Gandalf's industry-leading
patented compression and encryption.

* XPRESSCONNECT 5230I -- a remote access device specifically tailored for
the SOHO or casual teleworker who wants access to corporate resources with
the performance benefits of ISDN at a price that is appropriate for their
access requirements.

* XPRESSCONNECT 5231I -- a remote IP router ideally suited for the
individual home user who wants cost competitive Internet access over
ISDN.

"This announcement is further evidence of our commitment to provide our
customers with the solutions they want at the price that makes sense for
their business, " said Joceline Lemieux, vice president, marketing.
"Gandalf leads the way through its technological innovation and
comprehensive operational support."

XpressStack IAS offers Internet Service Providers and Operating Telephone
Companies an integrated, single-platform access solution for remote users
with analog modems and users accessing through digital services such as
ISDN. XpressStack IAS supports 48 simultaneous connections through two
Primary Rate (PRI)/T1 Interfaces that can support any combination of up to
48 analog connections or 46 B channels (64K bps)/23 Basic Rate Interfaces
(BRI). Advanced system features such as dynamic IP addressing increases
useability and reduces administrative costs by eliminating the need to
manage assigned IP addresses. The fully-integrated XpressStack IAS
eliminates modem racks and external terminal adapters, saving in equipment
costs, maintenance costs and floor space. The sophisticated call
accounting feature allows ISPs to manage and monitor useage charges based
on type of service as well as call duration. XpressStack IAS ensures
interoperability and investment protection through the support of industry
standards including Point-to-Point Protocol, Multilink Protocol, Bandwidth
Allocation Control Protocol and Point-to-Point Tunneling Protocol. The
XpressStack IAS is fully SNMP manageable, reducing operational cost.

XpressConnect 5230i provides users with voice, fax and LAN traffic to their
home or small office through a single ISDN line. XpressConnect 5230i
supports IPX spoofing to manage communications in a Novell network and
operates in many network environments including TCPIP, Windows NT, and
AppleTalk. Supporting up to four users, the 5230i provides two analog
ports, bandwidth-on-demand and full SNMP manageability. The XpressConnect
5230i is priced at $589 (US) per unit.

The third new addition to the Xpress family of remote access solutions is
the XpressConnect 5231i. While ideally suited for the individual home user
who wants performance access to the Internet, it also allows connection
for up to four LAN devices for the busy home office. In addition, the
5231i provides dynamic IP addressing, two analog voice ports and the
ability to dial two destinations simultaneously. The XpressConnect 5231i
is priced at $689 (US) per unit.

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
Limited in the U.K., Gandalf Netherlands, B.V., Gandalf S.A in France.,
and Gandalf International Limited.

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:

Ingrid Tremblay
Public Relations
Gandalf Technologies Inc.
(613) 274-6535
ingrid.tremblay@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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