ZyXEL Establishes its First Subsidiary in Europe

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November 11, 1998

TAIWAN -- November 11, 1998 - ZyXEL Communications Corporation, headquartered in Taiwan, today announced the establishment of its first subsidiary in Europe. The new company, ZyXEL A/S, is registered and located in Copenhagen, Denmark, and will serve the North Europe market.

"Europe has been very important to ZyXEL. With the increased demand in Internet and the reform in telecommunication, we are seeing more and more business opportunities in Europe. At the same time, we recognize the fact that ZyXEL needs to be present in Europe to serve its customers better and faster. The establishment of ZyXEL A/S will allow us to accomplish these two goals," said Mr. Shin-Jou Fang, President of ZyXEL Communications Corporation.

"Strategically, ZyXEL A/S will provide ZyXEL with closer cooperation with local telco companies and key accounts, as well as better understanding of the market. Operationally, this subsidiary will enable ZyXEL to provide better marketing and technical service to ZyXEL's customers in North Europe," added Mr. Fang.

Mr. Frank Rasmussen, CEO of Image Scandinavia A/S which is ZyXEL's current distributor in Denmark, has accepted the position of the President of ZyXEL A/S. Mr. Rasmussen has a good knowledge in both Internet and hardware distribution business. "What ZyXEL A/S will provide is not only hardware but also networking solutions based on ZyXEL products," said Mr. Rasmussen, "and with its strong financial background, ZyXEL A/S will also provide shorter delivery lead time to its customers."

ZyXEL A/S will be operational from December 1, 1998. Image Scandinavia A/S will cease to be ZyXEL's distributor in Denmark on the same date. ZyXEL A/S email address is sales@zyxel.dk, and the address is Columbusvej 5, DK-2860 Soeborg, Denmark.

About ZyXEL
About ZyXEL ZyXEL Communications Corporation, founded in Taiwan in 1989, specializes in high quality modem. ISDN terminal adapter, ISDN router, modem router and Internet access products. For more information, please contact Ms. Michelle Lee at milee@zyxel.com.tw or visit our Web site at http://www.zyxel.com/