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In-Stat/MDR Voice over Wireless LAN Making its 
Move into Verticals -- Popularity of 802.11b 
& LAN Telephony Driving Growth

    SCOTTSDALE, Ariz., April 23, 2002 - As the Wi-Fi Wireless LAN installed base looks to add voice to existing wireless networks and wireless IP handsets continue to constitute a percentage of the growing LAN telephony market, the Voice over 802.11x market will experience healthy growth in 2002 and beyond.

    According to In-Stat/MDR (http://www.instat.com), additional demand from verticals such as education, healthcare, retail and logistics will help the overall Voice over Wireless LAN (VoWLAN) market to expand to over 80,000 handset shipments in 2002, a significant jump from the 20,000 shipments in 2001.

    The high-tech research firm reports that annual shipments of Voice over 802.11x handsets are expected to surpass half a million units by 2006, accounting for revenues of over a quarter of a million annually.

    "Even though the market is projected to grow significantly, there is currently not much demand for wireless voice beyond the education, healthcare and retail markets," said Brian Strachman, an analyst with In-Stat/MDR. "VoWLAN vendors are banking on the fact that if the solution is easy and cheap enough to implement, it will eventually find its way into areas outside of the traditional three."

    As a result, the only two vendors in the Voice over 802.11x handset market, Symbol and Spectralink, have partnered with PBX, wireless LAN, and LAN Telephony vendors to sell their products, attributing almost 100 percent of their sales to these partnerships.

    According to Gemma Paulo, another analyst with In-Stat/MDR, "As the demand for Voice over WLAN increases, more, and larger, vendors are expected to enter the market, bringing handset prices down, and pushing VoWLAN handsets out to the more mainstream business environments."

    In-Stat/MDR has also found that:

-- Symbol and Spectralink both experienced tremendous growth over the course of 2000 and 2001, benefiting from the huge popularity of Wi-Fi (802.11b) technology, as well as the increasing demand for LAN telephony systems in the business. Although Symbol claimed over 50 percent of the market in 2000, in 2001 the company slipped to under 50 percent, as Spectralink experienced a tremendous uptake in 4Q01. Spectralink's success was due mainly to its partnership with Cisco to push out its NetLink IP Wireless handsets.
-- The ratification of 802.11e promises to provide some solidity to Quality of Service (QoS) measures to provide for increased voice quality over 802.11x networks. Although Spectralink has its proprietary QoS method, a standard QoS would allow for more competitors to enter the market, drive prices down, and increase market growth.

    The report, "Voice over Wireless LAN: 802.11x Hears the Call for Wireless VoIP" (# IN020170LN), examines the VoWLAN market, focusing specifically on wireless handsets that support IEEE 802.11x WLAN technology. Overviews of both the Wireless LAN and LAN Telephony markets are provided, as well as an explanation of VoWLAN architecture and equipment.

    The report also includes market shares for wireless handsets, a five-year forecast for the 802.11x wireless handset market, analysis of market drivers, and vendor profiles. To purchase this report, or for more information, please visit: http://www.instat.com/catalog/cat-ln.htm or contact Matthew Woods at 617/630-2139; mwoods@instat.com. The report price is $1,995 USD.

    In-Stat/MDR (http://www.instat.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals, and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products.

    This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end users.

    In-Stat/MDR is a unit of Reed Business Information, a leading provider of critical information and marketing solutions to business professionals and a member of the Reed Elsevier plc group.

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            CONTACT: 
            In-Stat/MDR, Scottsdale
            Brian Strachman, 480/483-4454
            bstrachman@instat.com
            Gemma Paulo, 480/483-4465
            gpaulo@instat.com
            Kirsten Skedd, 480/609-4534
            kskedd@instat.com