Proteon Announces Strategic Partnership with NTT-AT of Japan

Companies Will Work Together to Provide Japanese Marketplace with

              High-Performance Remote Access Connectivity Products 

WESTBORO, Mass., Dec. 2 /PRNewswire/ -- Proteon, Inc. (Nasdaq: PTON) today announced it has formed a strategic partnership with NTT Advanced Technology Corporation (AT) of Japan in which Proteon and NTT-AT will work together to provide the Japanese marketplace with high-performance remote access connectivity products for Integrated Services Digital Network (ISDN) links.

Future product offerings, to be developed for the Remote Access network market by NTT-AT's Open Computer Network Services, will integrate technology from Proteon's GlobeTrotter 72-S/T, a powerful, low-cost Remote Access router that includes support for IP, IPX, AppleTalk and bridging connectivity. The now products will also be sold with an integrated NTT-AT Data Service Unit (DSU).

Dr. Jun Yamagata, vice president and director for NTT-AT's Networking Division Group in Kawasaki city, Japan, said, "We are happy to work with Proteon because the company has demonstrated its ability to build a high quality product for the ISDN marketplace. We have also been very impressed with the performance of Proteon's standards-based OpenROUTE(TM) internetworking software. We believe there is a clear demand for this type of product in the Japan marketplace."

Mr. Daniel J. Capone, Jr., Proteon president and chief executive officer, said, "We are very pleased to be working with a key subsidiary of one of the world's largest telecommunications companies. We believe that our GlobeTrotter technology is a good complement to the remote access capabilities being developed by NTT-AT. Together, we are delivering a low-cost product that delivers top performance, ease of use, network security and standards- based interoperability. We look forward to a long and productive relationship."

The market for Access Network Solutions (including ISDN products) in Japan is currently showing dramatic growth as small offices and Internet/Intranet users take advantage of ISDN's high bandwidth capabilities.

About NTT-AT

NTT-AT, with the capability of system integration of leading edge networking technologies, is one of the fastest growing and most powerful subsidiaries of NTT. The company has a high degree of proficiency in the data communications sector utilizing LAN technologies, and now is focusing on the Remote Access market as one of its focus areas.

About Proteon

Proteon's GlobeTrotter remote access routers feature the best price performance in their class. Single unit prices for Internet Protocol (IP) connectivity start at only $795 per unit, and Proteon's data compression functionality provides data throughput performance that is 30 to 70 percent faster than competing products. GlobeTrotter products also provide a Wide range of network security features for Internet, Intranet and corporate applications.

GlobeTrotters feature OpenROUTE, Proteon's interoperable, standards-based routing software. This means that GlobeTrotters are fully compatible with networking devices from such leading vendors as IBM, Digital and Motorola, who have licensed OpenROUTE, as well as other vendors' standards-based networking equipment. GlobeTrotter products can be installed in less than five minutes and are easily maintained and managed from central network sites. For more information, contact Proteon at 800-545-7464, on the World Wide Web at http://www.proteon.com, or by e-mail at pro@proteon.com.

SOURCE Proteon, Inc.

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/CONTACT: Joe M. Grillo of Proteon, Inc. in U.S.A, 508-898-2800 or jmg@proteon.com, or Takayoshi Hosooka of NTT-AT in Japan, 044-220-2112 or eigyo@ktb.netwk.ntt.at.co.jp/

(PTON)

CO: Proteon, Inc. ST: Massachusetts IN: FIN SU:

LZ-DP -- NEM028 -- 6828 12/02/96 11:16 EST http://www.prnewswire.com