ZyXEL Dominates DSL Router Market of Europe and the World

40% European market share, 16% worldwide

Hsinchu, August 24, 2004 -- According to the "2003 DSL Broadband Router" market report recently released by Gartner Dataquest on July 28, ZyXEL Communications (TSE:2391) has left renowned DSL equipment makers in the dust with the whopping 40% dominance in the EMEA market (Europe, Middle East and Africa). ZyXEL is also leading the global DSL router market with a significant 16% share. Since 2001, ZyXEL has been the only vendor to stay atop on the list three years in a row.

"ZyXEL believes that creating more added values for customers is the key to stay on edge in the highly competitive broadband market," said Jerry Lin, Vice President of ZyXEL Sales and Marketing Division. "The aggressive development of technologies does not only empower ZyXEL to design specifically for local telecom markets, but also allows more values through innovative features." Aside from enabling ZyXEL to maintain a better shape while others trapped in a price war, these advantages also attract major telcos and service providers such as Sprint in North America, Telefonica Brazil in South America, Deutsche Telekom and Telefonica in West Europe, as well as Norwegian Telenor and Swedish TeliaSonera in Scandinavia, to deploy ZyXEL products.

About ZyXEL Communications
ZyXEL Communications Co. (TSE: 2391), located in Hsinchu, Taiwan, is world's largest DSL router provider (Gartner, July 2004). ZyXEL's broad line of Internet Protocol-based (IP) networking solutions includes access multiplexors, customer premise equipment, Internet security and Wireless LAN equipment, enabling high-performance network services for SOHO, small to mid-sized businesses and service providers. ZyXEL works closely with worldwide network equipment vendors, telecommunications companies, ISPs, and other major businesses. For more information, visit the company's Website at http://www.zyxel.com