ZyXEL Expands Router Market Share in Western Europe

IDC's Latest Market Analyst Figures Show ZyXEL's SOHO Routers Grabbing 16% Market Share from Key Competitors

Hsinchu, Taiwan, July 25, 2001 -- ZyXEL Communications Co., (TAI: 2391.TW), a pioneer manufacturer and supplier of broadband access solutions, today announced that it has aggressively extended its market share in the router market, according to the first quarter 2001 report from IDC. The results also indicate that ZyXEL has strengthened its position as Western Europe's second largest router supplier when compared against its largest competitors, such as Cisco, 3Com and Bintac.

IDC's latest survey reported that the Western European router market experienced a fair first quarter, with shipments reaching 241,884 units in overall router segments and 146,585 units in SOHO segments, a slight decline from the 253,589 overall units and 147,715 SOHO units from the last quarter.

While the market finished with a minor decrease in unit shipments, ZyXEL's router sales grew in the overall and SOHO router segments. ZyXEL's market share aggressively increased from 11% in the last quarter to the current 16% in the SOHO segment, and overall router market share expanded to 6%.

About IDC
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies and the financial community.

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.