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To: Peace who wrote (1501)	11/20/2000 10:10:18 AM
From: Peace	Read Replies (1) \| Respond to of 2404

Synergy Research Group Releases Q3 Market Share Results; Communications Equipment Growth Strong in Q3 PHOENIX--(BUSINESS WIRE)--Nov. 20, 2000--Synergy Research Group (SRG) announced today that it has released third quarter market share reports for Broadband, Convergence, Internet, Optical, and VoIP Communication Equipment. Third quarter results were strong for equipment manufacturers, even amidst a backdrop of capital expenditure concerns by telecommunications providers. In stark contrast to these concerns, several manufacturers experienced component supply constraints in meeting product demand for the quarter. SRG's quarterly research shows the Worldwide Communications Equipment will exceed $180 Billion in 2000. The Communications Equipment market grew to $48.5 billion in Q3, an increase of 17% over the year ago quarter. Growth of traditional, circuit-based communications equipment continued to soften, in contrast to double and triple-digit growth for emerging and packet-based communications equipment. As a strong indication of this trend, Cisco pulled ahead of several traditional telecom manufacturers in the quarter and nearly garnered the number one spot as the biggest market share holder of total worldwide communications equipment sales. Nortel achieved a share of 12.8%, the number one spot, and Cisco achieved a share of 12.6%. Deregulation, accelerating technical advances in silicon and software, and increased service provider competition continue to drive dramatic changes in how we communicate and how traditional and emerging telecoms build-out their networks. This is a gold mine to those communication equipment manufacturers that can engineer, build, and support the systems and technology to meet these ends. Significant events in the quarter include: -- Optical Networking Equipment (including traditional and emerging) increased 28% to $6.8 billion from the year ago quarter. Alcatel garnered the number one position in traditional Optical equipment (including Submarine Optical Transmission) with a market share of over 20%. -- Gigabit/Terabit Router market saw Juniper Networks achieving its largest market share gain ever, growing its market share to 24%. Juniper continues to place competitive pressure on one of Cisco's core markets. -- Quarterly results of the Wireless broadband equipment (Fixed) market set it to exceed $2 billion in 2000 with 14% of revenue derived from point to multipoint systems. -- DSLAM sales increased over 50% sequentially and 327% from the year ago quarter, nearly reaching $1 billion for the first time. Also for the first time, Alcatel's leadership position was threatened with Lucent's DSLAM sales nearly surpassing those of Alcatel's. -- Sonus continues to reinvent the PSTN by successfully providing strategic telecom carriers the technology to bypass investment in traditional Circuit Switches. As of Q3 2000, Sonus is the 3rd largest provider of VoIP service provider ports shipped. They are second only to Cisco and Lucent. -- LAN Telephony continues to challenge the traditional PBX market as evidenced by the continued success of Cisco/Selsius and 3Com/NBX, with Cisco experiencing the most dramatic growth in the quarter of over 100 percent. -- CoSine, Lucent/Springtide, and Nortel/Shasta continue to drive the IP Service Switch market by over 70 percent to $75 million. About Synergy Research Group Synergy Research Group Incorporated (SRG) is a market research firm, which provides quarterly market intelligence focused on emerging communication equipment manufacturers and markets through its seven syndicated research programs: Internet, Broadband, Voice over IP (VoIP), Multi-service WAN, Port Speed analysis, EMEA, and Total Communications Market Measurement and a monthly analysis of industry trends. For more information: www.synergyresearchgroup.com. The contents of this press release represent SRG's interpretation and analysis of statistics and information collected from authorized company representatives, industry sources, and SRG estimates. SRG does not guarantee the accuracy or completeness of the statistics or information contained in this release. --30--NTC/se* CONTACT: Synergy Research Group Incorporated Jeremy Duke Jeremy@synergyresearchgroup.com or Kelly Grommes, 602/287-9097 Kelly@synergyresearchgroup.com