In-Stat/MDR Reports Broadband Wireless 
LAN Equipment Volumes Continue to Shine in 2Q02

    SCOTTSDALE, Ariz., Aug. 19, 2002 - The Wireless LAN market continued to shine, as unit shipments grew 15% overall in 2Q02, bringing some much-needed sunshine to the dreary networking technology industry, according to In-Stat/MDR (http://www.instat.com).

    However, the high-tech market research firm reports that end-use revenues remained flat, with overall end-use revenues falling 1% over the quarter. This tremendous outpacing of equipment volume growth to revenue growth points to the rapid commoditization of the 802.11b equipment market.

    "Although the slightly negative revenue growth is troubling for WLAN equipment manufacturers across the board, the falling margins have both driven increased 802.11b volume shipments, as well as spurred vendors to quickly roll out new, high-speed products," commented Gemma Paulo, a senior analyst with In-Stat/MDR.

    "This is not an industry that is lacking in innovation, as even the low-end vendors are finding ways to differentiate their WLAN products, this is a very good sign that there is still a significant amount of momentum in this market."

   In-Stat/MDR also found that:

--	Networking giant Cisco continued to dominate the market in terms of overall revenue, although small business and home specialist Linksys topped the market in terms of unit shipments.
--	The 802.11a market continued its healthy growth, with players such as Proxim, Intel, Netgear, D-Link, SMC, and Actiontec contributing to this volume and revenue growth. 802.11a newcomer Linksys grabbed 5% of the quarterly 802.11a volume share even though it started shipping very late in the second quarter.
--	The home market continued to drive overall WLAN market growth, with total home shipments growing 20%, spurred on by the popularity of low-cost wireless broadband gateway products (combo AP and router devices often with multiple Ethernet ports and optional print servers). Linksys, D-Link, Buffalo, Apple and Netgear all performed strongly in the home/SOHO market.
--	Asia Pacific remained a high-growth market for wireless LAN growth, with Taiwan, South Korea and Hong Kong coming on very strong. D-Link registered impressive growth in Taiwan and AsiaPac in general.

    The report, "2Q 2002 WLAN Market Analysis" (#IN020201WL), contains market shares and forecasts for NICs and access points, by technology (802.11b, 802.11a, others), and by market (business and consumer).
    To purchase this report, or for more information, please visit: http://www.instat.com/catalog/cat-cq.htm or contact Matthew Woods at mwoods@reedbusiness.com or 617/630-2139. The report is priced at $2,995.

    About In-Stat/MDR
    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 part of the Reed Electronics Group, a division of Reed Elsevier (www.reedelsevier.com), a world-leading publisher and information provider.

    With over 38,000 employees worldwide, Reed Elsevier operates in the science & medical, legal, education and business-to-business industry sectors, providing high value and flexible information solutions to professional end users, with increasing emphasis on the Internet.

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             CONTACT: 
             In-Stat/MDR
             Gemma Paulo, 480/483-4465
             E-mail: gpaulo@reedbusiness.com
                or
             Kirsten Skedd (marketing), 480/609-4534
             E-mail: kskedd@reedbusiness.com