Press Release

For more information contact:
Heather Wilson
(602) 287-9097
hwilson@srgresearch.com

IP-Based Networking and Telecom Product Sales Lead A Global Turnaround For Industry in 2004

Results Show Double-Digit Increase Over 2003

Scottsdale, Arizona – According to Synergy Research Group’s latest report, Q4 2004 Global Networking and Telecom Equipment Market Shares, the global networking and telecom equipment market increased 5.5 percent sequentially and 9.3 percent year-over-year in the Fourth Quarter of 2004. What’s more, for year-end 2004, the market grew 13 percent compared to 2003 on Enterprises and Service Providers both spending to implement more efficient and more flexible IP-based equipment.

“Sales of IP-based equipment contributed strongly to the growth of the global market for networking and telecom equipment. Sales in the Fourth Quarter hit a high note for vendors as end of year spending from Service Providers around the globe reached peak levels for 2004,” said Joshua Johnson, Senior Analyst at Synergy Research Group. ”Going forward, after the dust settles on the agreements between some of their biggest customers, the vendors’ own M&A activity may further change the game in 2005.”

Table 1: Year End 2004 Networking and Telecom Equipment Vendor Sales Increases

1. Juniper +100%
2. Huawei + 39%
3. Ericsson + 28%
4. Motorola + 27%
5. Alcatel + 20%
6. Cisco + 20%

Notable sequential market share gainers for the quarter included Alcatel, Cisco, Ericsson, Juniper, Huawei, Motorola, and Nokia.

This 64-page report containing 26 market share tables is available for purchase at www.srgresearch.com.

Synergy Research Group (SRG) is a market research firm, which specializes in quarterly market analysis, market share, forecasting, and strategic consulting. SRG offers a wide breadth of market research services to the equipment manufacturing, semiconductor, and financial communities. SRG can be found at www.srgresearch.com.

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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.