ZyXEL Ranks 4th Communications Equipment Company in Business Times' Top 100 Taiwanese Communications Vendor List

Hsinchu, Taiwan, July 25, 2001 -- ZyXEL Communications Co., (TAI: 2391.TW), a pioneer manufacturer and supplier of broadband access solutions, today announced that it was ranked Taiwan's 4th largest communications equipment vendor by Business Times Magazine. In addition, ZyXEL was the 5th largest communications equipment vendor in terms of revenue for the year 2000, and the Earning Per Share (EPS) was ranked the 3rd. This compilation was published in Business Times Magazine, June 24, 2001, Vol. 34.

To be eligible for this listing, companies must have over 25% of their revenue coming from communications product line. Business Times used its proprietary scoring system to sort through over 300 vendors and compile the Top 100 Taiwanese Communications Vendor List. Companies were evaluated in terms of capital scale, revenue, income as well as EPS in the year 2000, and were ranked by the following 5 categories: Communications Equipment, End-user Equipment, Service Providers, Resellers/Distributors and Component Manufacturer.

The top 5 vendors in each category are all recognized as industry leaders in their respective sectors. They have demonstrated their overall performance across markets and regions, some even on a global scale. ZyXEL ranked particularly well in terms of revenue and EPS, in which it won the 3rd and 5th position in the communications equipment category.

"ZyXEL is honored to received this prestigious recognition," said Shun-I Chu, Vice Chairman and President of ZyXEL. "ZyXEL's broadband business contributed significantly to the company's success in the last year. Being recognized by Business Times Magazine for our overall performance further expressed a clear statement of the company's leadership in the marketplace."

About ZyXEL Communications
ZyXEL Communications Co. (TAI:2391.TW), located in Hsinchu, Taiwan, is Taiwan's leading broadband access solution provider. Products developed by ZyXEL over the years are not only industry leaders, but consistently win acclaim and are selected by worldwide telecommunications companies, ISPs, and other major businesses. ZyXEL now serves Chunghwa Telecom (TAI:2412.TW), Deutsche Telekom, EarthLink (NASDAQ: ELNK), France Telecom (NYSE:FTE), Sprint, Telefonica Brazil, Telenor, Verizon (NYSE: VZ) and many others. For more information on ZyXEL Communications, visit company's Website at http://www.zyxel.com.