<PAGE>
EXHIBIT 99.1
Xircom Agrees to Acquire Omnipoint Technologies from
VoiceStream(R) Wireless Corporation
VoiceStream takes equity stake and board seat
as part of ongoing business technology alliance with Xircom
THOUSAND OAKS, Calif., June 13, 2000 - Xircom, Inc. (Nasdaq: XIRC), the
leading provider of mobile information access solutions, today announced that it
is acquiring Omnipoint Technologies, Inc. (OTI), a wholly owned subsidiary of
VoiceStream Wireless Corporation (Nasdaq: VSTR). This acquisition is a key
element of Xircom's strategy to be a total provider of wireless data solutions
for Wide Area, Personal Area, and Local Area Networks.
An analyst call will be held at 5:00 PM, Eastern Standard Time today to
discuss details of the acquisition. A live webcast of the announcement will also
be available on Xircom's website at www.xircom.com/wirelesscall.
---------------------------
Under the terms of the agreement, VoiceStream will become a minority
investor in Xircom by holding 1,201,079 shares of Xircom common stock to be
exchanged for all outstanding shares of OTI. Based on Xircom's June 12, 2000,
closing price, the stock exchanged would have a value of $52.2 million. In
addition, Xircom assumes certain liabilities, and unvested employee stock
options with an in-the-money value of approximately $8.3 million as of June 9,
2000. This acquisition will be accounted for as a purchase, and Xircom expects
to incur a charge to earnings related to the write-off of purchased in-process
research and development of between $15 and $25 million during the quarter ended
June 30, 2000. The transaction is expected to close within three weeks. Xircom
expects the acquisition to become accretive to earnings in the second year of
operations. The acquisition has been approved by the board of directors of each
company and is subject to various closing conditions.
(more)
<PAGE>
Robert R. Stapleton, President and Director of VoiceStream will accept a
seat on Xircom's Board of Directors. Stapleton has served as Director of
VoiceStream since April 1999 and President of VoiceStream since it was founded
in 1994. Effective April 1998, Stapleton became responsible for all operations
of VoiceStream.
The acquisition of OTI enhances Xircom's wireless position by adding Wide
Area Network (WAN), Global System for Mobile Communications (GSM), and General
Packet Radio Service (GPRS) products and technology to its wireless data access
solutions. OTI's management and engineering talent provides extensive experience
in the wireless industry and secures a close working relationship with
VoiceStream, the largest US provider of personal communications services with
GSM technology. Recently, OTI has been focused on creating wireless data
products based on GPRS technology and Xircom will leverage this expertise to
move into current and next generation wireless solutions.
Xircom, by combining its offerings with the expertise from OTI, will
deliver wireless data products supporting GPRS. An emerging high-speed wireless
service, GPRS offers a mobile data experience similar to current analog modems
without wires and with access wherever GSM service is available worldwide. These
products will be ideal for wireless data access from mobile devices such as
notebook computers and handheld PCs, because GPRS delivers a constant connection
as long as the device is powered on, eliminating the need to continually redial
a modem. Users experience an "always on" connection to their data from anywhere,
at any time, and are charged by the amount of data downloaded rather than by
standard time-based billing.
"The combination of Xircom's expertise in mobile data devices and OTI's
GPRS technology will bring users unparalleled mobile access and connectivity,"
said Bo Piekarski, Vice-President of Strategic Business Initiatives for OTI.
(more)
<PAGE>
"This acquisition will enable Xircom to deliver true mobility to our data
customers. Our RealPort2(TM) PC Card and handheld communication cards provide
multiple options to meet the varying needs of mobile data users. By adding GPRS,
we are able to provide our customers with wireless access virtually anywhere,"
said Dirk Gates, Xircom chairman, president and chief executive officer. "OTI's
extraordinary talent pool, history of innovation, wireless industry expertise,
and long standing-history in the GSM operator community clearly position Xircom
for leadership in the wireless data market."
"Xircom is the leader in wired mobile data communications with established
strength in the enterprise market, channels, and brands. Xircom's acquisition of
OTI and alliance with VoiceStream will provide Xircom with access to a new
market with 250 million worldwide GSM customers today," said John Stanton,
Chairman, and Chief Executive Officer of VoiceStream. "Xircom's wireless data
technology and international GSM expertise will combine with VoiceStream's high-
speed packet data, Internet content, and high quality wireless service to
provide worldwide mobile customers with wireless WAN data and Internet
services."
General Packet Radio Service (GPRS)
GPRS works in conjunction with the GSM voice network and is expected to be
available in all areas where there is GSM coverage. GPRS enables mobile users to
access the Internet, retrieve email, and connect to home and office networks
with speeds up to 115 Kbps, depending upon the network operator's service
offerings. It is anticipated that network operators will roll out GPRS in late
2000 or early 2001.
(more)
<PAGE>
Xircom Acquiring OTI
4-4-4-4
Global System for Mobile Communications (GSM)
Global System for Mobile Communications (GSM) is an international digital
radio standard, created by the European Telecommunications Standards Institute.
Developed to allow users to roam freely among markets, it has become the
globally accepted standard since the first systems began commercial operation in
1991.
Adopted by 142 countries, GSM is the most widely used digital wireless
standard in the world with approximately 300 million subscribers on six
continents. In North America, GSM serves 3.6 million customers, with
approximately 11 new cities going online each day. GSM offers unprecedented
international and domestic roaming advantages to wireless consumers.
About Xircom, Inc.
For over a decade mobile professionals around the world have relied on
Xircom for access to their information anytime, anywhere. Xircom designs and
develops innovative solutions that connect mobile users worldwide to corporate
networks, the Internet, Intranets and other online resources. Xircom sells and
supports its products in over 100 countries through distributors, resellers,
electronic channels and global OEM partnerships. Headquartered in Thousand Oaks,
California, with regional offices in Belgium, Japan and Singapore, Xircom has
over 1,700 employees worldwide and trailing four-quarter revenue of $450
million.
For more information on Xircom mobile access solutions visit
www.xircom.com, or telephone: (805) 376-9300, US Sales: (800) 438-4526, fax:
--------------
(805) 376-9311.
(more)
<PAGE>
Xircom worldwide press contacts:
Xircom Corporate:
Cheryl Renton
Manager, Corporate Public Relations
cheryl@[email protected]
Tel. 805-376-6813
Xircom Regions:
Americas
Sally Peterson
Public Relations Manager
U.S. Customers, Channels and Vertical Markets Latin America and Canada
sally@[email protected]
-------------------------
Tel. 805-375-8892
Europe/Middle East/Africa:
Carina Govaert
Public Relations Manager
carina@[email protected]
-------------------------
Tel. +32/3 450 0904
Asia Pacific:
Monica Li
Public Relations Executive
monica@[email protected]
--------------------
Tel. +65 732 5001
Japan:
Reiko Iwado
Public Relations Executive
reiko@[email protected]
----------------------
Tel: +81/(0)3 3407 0
About VoiceStream
Based in Bellevue, WA, VoiceStream Wireless is a leading provider of
wireless communications services in the United States. VoiceStream Wireless with
Cook Inlet Region Inc., has licenses to provide service to over 218 million
people with operating systems from New York to Hawaii. With licenses in 23 of
the top 25 markets VoiceStream is one of the major providers of
telecommunications services in the country. VoiceStream is the largest provider
of personal communications service using the globally dominant GSM technology in
the United States. VoiceStream is a member of the North American GSM Alliance
LLC, a group of U.S. and Canadian digital wireless PCS carriers. The GSM
Alliance helps provide GSM wireless communications for their customers in more
than 4,000 U.S. and Canadian cities and towns as well as international service.
In February 2000, VoiceStream acquired Omnipoint Corporation, the parent of
OTI and Omnipoint Communications, a GSM carrier. VoiceStream is retaining all
Omnipoint Communications' networks and FCC licenses.
(more)
<PAGE>
Xircom Acquiring OTI
6-6-6-6
VoiceStream Press Contacts:
Ken Prussing
------------
VoiceStream Investor Relations
(877) 853-8682
www.voicestream.com
-------------------
Kim Thompson
------------
VoiceStream Media Relations
(425) 653-5027
www.voicestream.com
-------------------
<PAGE>
This news release contains certain forward-looking statements based on current
expectations that involve a number of risks and uncertainties, which could cause
actual results to differ materially. These risks and uncertainties include the
timing and success of new product introductions, anticipated value of in-process
research and development, actual earnings performance, the introduction and
adoption of applicable GPRS and GSM wireless technologies by service providers,
the market acceptance by users of applicable GPRS and GSM wireless technologies,
and the introduction and adoption of wireless technologies which may compete
with GPRS and GSM wireless technologies.
Xircom is a registered trademark of Xircom, Inc. Other company or product names
have been used for identification purposes only and may be trademarks or
registered trademarks of their respective companies.
Xircom is headquartered in Thousand Oaks, Calif., and has regional headquarter
offices in Antwerp, Belgium, Tokyo, Japan and Singapore. US Sales: (800) 438-
4526. Telephone: (805) 376-9300 Fax: (805) 376-9311
####
