ZyXEL ZyWALL 70 Internet Security Appliance Crowned as 'Best of 2004' by SC Magazine, the World's Top Information Security Publication

Hsinchu, January 20, 2005 -- ZyXEL Communications (TSE:2391), world's leading broadband access solutions provider, today announces that its ZyXEL ZyWALL 70 Security Appliance has been recognized by SC Magazine (www.scmagazine.com), the most prestigious and best-selling information security publication worldwide, as its top-ranking "Best of 2004" finalist in the December 2004 issue.

After conducting tests on hundreds of information security products during the past year, SC Magazine made its final decisions on the best products in their respective categories in December 2004. ZyXEL's ZyWALL 70 stands out with excellent scores and favorable reviews in the "Integrated Appliances" category, and adequately awarded as the "Best of 2004" winner.

"As the world's largest information security publication, SC Magazine's 'Best of the Year' title has been dubbed as 'the Academy Award' in this arena." Says Albert Lee, Senior Product Manager of ZyXEL's Network Security and Applications Division. "The honor does not just belong to ZyWALL 70, but also the ZyXEL team. It is the best affirmation to ZyXEL's leading position in information security. As always, we are committed to even better solutions with our technical advantages."

About ZyXEL ZyWALL 70 Internet Security Appliance
The ZyWALL Internet Security Appliance Series is an integral part of the Safeguard features in ZyXEL's "SMART Global Network Security Total Solution". The ICSA-certified ZyWALL 70 provides dual-WAN for SMBs with two broadband connections, and it is capable of establishing over 100 VPN channels, 100Mbps throughput, and 60Mbps hardware-accelerated VPN performance. In addition, ZyWALL 70 offers advanced features such as Auto Fail Over & Fail Back, Bandwidth Management, Load Balancing, Content Filtering and DoS/DDoS attack resistance; its wireless expansion slot can accommodate a wireless card for additional AP functionalities. For more information, please visit the ZyWALL 70 Web pages at http://www.zyxel.com/product/model.php?indexcate=1073271397&indexcate1=1085450410&indexFlagvalue=1021873683

About ZyXEL "SMART Global Network Security Total Solution"
ZyXEL has created "Global Network Security Total Solution" with Alert, Safeguard, Response, Management, and ZyXEL best-of-breed Technology. The "mySecurityZone" Website distributes comprehensive attack signatures for alerting and identifying the latest vulnerabilities, and suggests steps of preventive actions. With ZyWALL firewall and IDP products working together to reinforce corporate networks, ZyXEL also integrates mySecurityZone, myZyXEL.com and update server services in ZyXEL Security Distribution Network (ZSDN). Moreover, ZyXEL provides Vantage CNM software and myZyXEL.com service platform for asset managements and service upgrades. Through this well-rounded scheme, ZyXEL users are entitled to the exceptional information security products and services they deserve.

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.