ZyXEL Expands International Presence with the New Subsidiaries in West Europe

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May 10, 1999

Hsinchu, Taiwan, May 10 ZyXEL Communications Corporation, the largest router manufacturer and supplier in Taiwan, today announced the establishment of ZyXEL Deutschland GmbH in the vicinity of Dusseldorf, Germany and ZyXEL Communications Services GmbH in Vienna, Austria as their new German and Austrian subsidiaries.

"European markets have always been an important marketplace for us, and we are excited about gradually becoming a part of the west European community," said Shin-Jou Fang, President of ZyXEL Communications Corporation. "Aimed at being a leader in delivering next generation Internet Access Solutions, ZyXEL currently is expanding its global presence through new footholds. With these new subsidiaries, we are able to better serve the west European market and provide a broad array of quality services to our local customers.

As an addition to ZyXEL's global marketing network, ZyXEL Deutschland GmbH will focus on marketing complete range ZyXEL's solutions and continue developing strong relationships with channel partners. Joern Brach, the former sales manager of German communications supplier ELSA, will be the new business manager. ZyXEL Communications Services GmbH, which has acted as a European product support center for a long time, will have Manfred Recla as the technical manager and will continue concentrating on pan-European after sales services and technical support of ZyXEL's products. ZyXEL also announced that Daniel Liu, the current Assistant Vice President of the sales and marketing division at ZyXEL, will be the acting President of the new subsidiaries.

"Germany is the largest IT market in Europe with one of the greatest potentials for sales growth, said Daniel Liu. During this period, we will put together a team of specialists to deliver what German customers are looking for: faster service, strong brand representation, and most importantly, interactive local business contact. We believe that our presence in Germany will provide us with the ability to quickly respond to the growing demand for ZyXEL's products.

The newly formed subsidiaries, both officially opened in the beginning of May, will combine ZyXEL's own sales and marketing initiatives to better serve the west European market. Full operation of the new subsidiaries will be from the third quarter onwards.

About ZyXEL
ZyXEL Communications Corporation (http://www.zyxel.com), located in Hsinchu, Taiwan, is a leading supplier of routers, xDSL products, ISDN terminal adapters, and modems. In 1991, ZyXEL expanded its operation to the United States, and opened its first European subsidiary in Denmark in 1998. ZyXEL now has distributors in over 70 countries, servicing customers in over 150 countries spanning all seven continents.