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Tuesday November 20, 8:15 pm Eastern Time

Press Release SOURCE: Infonetics Research, Inc.

Next Gen Voice Product Market Hits $135 Million in 3Q01

Will Reach $465 Million in 3Q02

SAN JOSE, Calif.–(BUSINESS WIRE)–Nov. 20, 2001–Worldwide revenues for next gen voice products totaled $135 million in 3Q01 — down 6% from last quarter — and are forecasted to hit $465 million in 3Q02, according to Infonetics Research’s quarterly worldwide market share and forecast service, Next Gen Voice Products, released today. Voice/data switches, voice over broadband gateways, VoIP gateways, class 5 packet gateways, and softswitches are tracked and forecasted in this service.

In recent quarters and into the near term, more next gen voice hardware than softswitches are being sold as initial service provider build-outs focus on footprint and tactical cost savings measures such as packet tandem and Internet offload. Softswitches and application servers will make up a larger portion of next gen voice product revenues during later phases of deployment.

“3Q01 was a mixed quarter for this market,” said Infonetics Research analyst Kevin Mitchell. “Hardware revenues declined 15%, but softswitches are up 8% from the previous quarter. Overall, we are bullish on this market for the long term.”

“The softswitch market is still in developmental mode and revenues have been flat the past 3 quarters. This market is experiencing a slow start due to the complexity of the softswitch architecture. We expect it to heat up in the second half of 2002 as service providers look to either augment their existing voice services or start from scratch with service delivery softswitches.”

Companies tracked in this service include Alcatel, Cirpack, Clarent, comMatch, CommWorks, Convergent Networks, CopperCom, General Bandwidth, Integral Access, ipVerse, Jetstream Communications, Lucent, Mockingbird Networks, Nortel, Nuera, Santera, Sonus Networks, Syndeo, tdSoft, Telica, Terayon, Telcordia, TollBridge, Unisphere, VocalTec, Zhone, and others.

Next Gen Voice Products helps companies understand the size of the market, the speed at which it’s growing, how it will grow in the future, and who’s leading in the various segments of the market. The quarterly service, delivered electronically, provides worldwide market share and shipment data, and forecast data divided by North America, EMEA, Asia Pacific, and the rest of the world.

For the table of contents of this report, which includes methodology notes, please contact:

* Larry Howard, Vice President, Western North America larry [at] infonetics [dot] com, 408/298-7999 x225 * Paul Ruggeri, Director of Sales, Eastern North America paul [at] infonetics [dot] com, 401/826-2160 * Gautam Sabharwal, Account Manager, Europe and ROW gautam [at] infonetics [dot] com, +44 (0) 19-2343-8276

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