Gandalf announces former IBM services director to head services group; Company steps up commitment to deliver network services and support.

NEPEAN, Ontario--(BUSINESS WIRE)--Oct. 4, 1995--GANDALF TECHNOLOGIES (TSE:GAN NASDAQ:GANDF) Gandalf Technologies Inc. today announced that Richard Busto has been appointed vice president of services, education and quality. In this role, Busto will be responsible for the development, implementation and distribution of service offerings worldwide.

"Dick Busto brings to Gandalf 29 years of industry experience at IBM, with expertise in all aspects of data processing and data communications and a background that is complementary to our services strategic direction," said Thomas Vassiliades, chairman, president and CEO. "The addition of Busto to our senior management team emphasizes Gandalf's commitment to providing comprehensive services to meet our customers' growing needs."

Before joining Gandalf, Mr. Busto was director of business development for IBM's Services Division and was responsible for market research, development and planning for all new services, including maintenance, software, Internet, wireless and network station management. From 1990 to 1993, Mr. Busto was general manager for field service operations for the U.S. He has held various management positions throughout IBM's services organization, including director of networking services, director of service planning, director of planning and director of finance. Busto will manage Gandalf's education function and oversee all quality functions.

Gandalf Technologies, a leading supplier of advanced networking products, provides customers with professional services and customer support, including consulting services, education and network services including installations, maintenance and network administration. Gandalf's services support Gandalf's access, backbone and concentration products, a suite of connectivity solutions that span an entire enterprise. The company's networking industry experience provides products and services that assist businesses in maximizing their network performance, while reducing their cost and improving their productivity requirements.

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 France S.A., 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.

CONTACT: John Pelkola

Public Relations

Gandalf Technologies Inc.

613/723-6500 x8321

john.pelkola@gandalf.ca

or

Wendy Burgess

Investor Relations

Gandalf Technologies Inc.

613/723-6500 x8327

wendy.burgess@gandalf.ca

or

Alys Reynders/Craig Librett

Miller/Shandwick Technologies

617/536-0470

areynders@millercom.com

clibrett@millercom.com

INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-236-4266 or

80