The LAN and WAN hardware markets remain stable with the LAN switch segment leading in Latin American, IDC says

MIAMI, FLORIDA – NOVEMBER 7, 2002 – According to the most recent report by IDC Latin America, The LAN/WAN market in Latin America totaled US $1.5 billion in 2001, with the LAN switch segment leading the market with 39 percent of the total market value.

The LAN/WAN market, including LAN switches, routers, WAN switches and remote access servers, was dominated by the LAN switch and router segments which together comprised 76.1percent of the total market value. In 2001, the LAN switch segment dominated the market, increasing it share in terms of end user spending by 3 percent compared to the year 2000 percent.

In 2001, the WAN switch market was valued at US$ 179 million, dropping 3 percent compared to last year's US $ 184 million. However, its share of the market remained stable at 11.7 percent. In the overall LAN WAN market in 2001, remote access servers had a share, in terms of value, of 12.4% of the total LAN and WAN market, down from 15.9% in 2000. This decrease came in the form of both units shipped and value. "Most of the RAS decline was due to an overcapacity issue in Brazil and Mexico driven by the increased purchase of RAS equipment during the Internet Boom of year 2000," said Senior analyst Felipe Rezk, and author of Latin America LAN/WAN Study #LA1266J.

Cisco continued to dominate, confirming its position as a solid leader in the total LAN and WAN hardware market with a 59.24% share. Second and third to Cisco in total LAN and WAN hardware market share were 3Com showing important signs of recovery, and Nortel Networks experiencing difficulties.

"Cisco was able to close these deals via international agreements with major telecom players such as Telefónica and leveraged its global partnerships with Compaq, IBM and HP along with its local partnerships. In Addition Cisco has also established alliances with universities and developed a program called Cisco Networking Academy to increase the number of networking

professionals and subsequently increase market penetration." Added Rezk. Latin America LAN/WAN Study. details the sizes of the major hardware markets including LAN switches, WAN switches, routers and remote access servers. Included in the study is the market sizing the product segment, protocol, channel and business segment with five-year forecasts in the top six markets of Latin America. For more information regarding the study, Latin America LAN/WAN Study IDC or to purchase the complete study, please contact Barbie Cordero of IDC Latin America bcordero@idc.com mailto:bcordero@idc.com or at (305) 351-3131.

About IDC Latin America

IDC Latin America has established an unrivaled reputation for analysis of the IT, Internet, and Telecom markets in Latin America. Its research group is comprised of over 90 analysts in Argentina, Brazil, Chile, Colombia, Mexico, and Venezuela who are devoted to generating the most authentic and up-to-date information on these markets. Following a commitment to excellence, IDC has pioneered primary research in the countries of Costa Rica, Dominican Republic, Ecuador, Guatemala, Panama, Peru, and Puerto Rico. This distinctive local presence results in the most comprehensive and trustworthy market coverage of the Latin American region. For more information, visit http://www.la.idc.com/ www.idclatin.com or call 305-351-3131.

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.