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Technology Stocks : Flexion -- PBX/Computer Telephony/Voice-Data

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To: blankmind who wrote (13)1/25/2000 9:00:00 AM
From: Gary Korn   of 72
 
1/17/00 Bus. Wire 08:16:00
Business Wire
Copyright (c) 2000, Business Wire

Monday, January 17, 2000

Demand for Converged Networks Surges PBX/KTS Into the New Millennium

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Jan. 17, 2000--

Driven by the Asia
Pacific economic upsurge and increasing demand for call centers, unified
messaging, networking capabilities and computer telephony integration (CTI),
the private branch exchange (PBX) and key telephone systems (KTS) markets are
primed for significant growth.

According to Frost & Sullivan's (www.frost.com) new strategic research, "Asia
Pacific PBX and KTS Markets," total market revenue for PBX and KTS equipment in
Asia Pacific reached $672.6 million in 1998. While unit sales grew to 6.8
million, the market experienced a decline in the average unit price.

The key factor impeding domestic manufacturer growth in Asia Pacific regions
is ineffective R&D investments. "Market participants aspiring to succeed need
to adopt effective pricing and R&D strategies in order to overcome PBX and KTS
market domination by multinationals, such as Lucent, Alcatel, Ericsson, Nortel
and others," say Frost & Sullivan analysts. "However, multinational
manufacturers in India and China are challenged by the domestic industry in
lower-end segments."

Many local companies have been forced out of the market due to their
inability to match the technology offered by multinationals. Furthermore,
consolidation is resulting in market share increases for larger industry
participants--all at the expense of local players.

"The current trend is toward converged networks," state the authors of this
study. "The demand for an increasing number of converged networks is likely to
fuel market replacement and upgrade." Australia is likely to lead the adoption
of converged solutions and Wireless PBX systems, while Singapore and Hong Kong
are likely to represent the next wave of adoption.

This study analyzes the PBX, KTS, and wireless PBX market segments and
provides analyses for Australia, China, Hong Kong, India, Malaysia, New
Zealand, Philippines, Singapore, Taiwan and Thailand. Frost & Sullivan
projects excellent growth rates from markets in India and the Philippines, while Centrex
services offered by China Telecom will likely stimulate market growth in China.

Frost & Sullivan is an international marketing consulting and training
company that monitors the PBX and KTS industry for market trends, market
measurements, and strategies. The ongoing research is utilized to update a
series of research publications and to support industry participants with
customized consulting needs. Free executive summaries of all Frost & Sullivan
reports are available to the press.

Report: No. 4182-62 Date: December 1999 Price: $12,450

CONTACT: Frost & Sullivan Jennifer Minx, 210/348-
1015 jminx@frost.com www.frost.com 08:01 EST
JANUARY 17, 2000

---- INDEX REFERENCES ----

NEWS SUBJECT: Business Wire; Press Release Wires (BW PREL)

MARKET SECTOR: Newswire End Code (NND)

INDUSTRY: Telecommunications, All (TEL)

Word Count: 381
1/17/00 BWIRE 08:16:00
END OF DOCUMENT
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