Carrier Router and Switch Market Up 16% Year-over-Year;

Worldwide

Infonetics Research: Worldwide revenue for service provider routers and switches totaled $1.63 billion in 1Q05, up less than 1% from 4Q04 and up 16% year-over-year, and is forecast to reach $8.9 billion in 2008, according to s quarterly worldwide market share and forecast service .Worldwide revenue for service provider IP routers totaled $1.1 billion in 1Q05, up 7% sequentially and up 25% year-over-year. In a quarter sometimes marked by seasonal declines after a usually strong fourth quarter, the market, as a whole, was surprisingly resilient, in large part due to the strength of IP router sales. Growth in the service provider router and switch market continues to be fueled by IP routers, with routers accounting for 70% of revenue and switches 30% in the first quarter.

1Q05 Market Highlights

• Cisco’s IP router revenue grew 8% quarter-over-quarter and 9% year-over-year, retaining the leadership position with steady share at 58%

• Juniper’s router revenue is up 1% sequentially and 57% from the same period last year in IP router revenue share, in second place with 27%

• NEC held on to third place worldwide, followed by Redback and Huawei

Service Provider Routers and Switches Publ 20050602