ZyXEL Ranked 25th in BusinessNext Taiwan Info Tech100, the Top Ranking of Networking Vendors

Hsinchu, July 5, 2005--In the "2005 Taiwan/China/Global Info Tech100" special issue published by BusinessNext Biweekly, ZyXEL Communications (TSE: 2391), world's leading broadband access solutions provider, captured Taiwan's 25th place of all companies evaluated, and secured the top ranking in all networking equipment vendors. As a recent hot topic, the 2005 Tech100 list not only illustrates the dynamic, fierce competition of Taiwanese IT industries, but also reflects upon the explosive innovations demonstrated by innumerable companies.

Every year, BusinessNext Biweekly works with Business Week magazine to evaluate the performance of 429 public Taiwanese IT companies with four criteria: Revenue, Revenue Growth, Return on Equity, and Shareholders' Return. In the Info Tech100 ranking, BusinessNext grouped the companies into 7 categories including semiconductors, computers, peripheral devices, telecom services and equipments. Among the Top 100 contestants, ZyXEL made a quantum leap from last year's 80th to 25th, and it also became the top in Taiwan's networking equipment providers.

"As the list reveals, competitive advantage comes from innovations that fit customer needs, as well as a good grasp to new niches," says Dr. Yuh-Long Chen, ZyXEL's President, "and this is where ZyXEL comes in. In the past years, we've devoted in offering better products, more innovations, a stronger brand and enhanced channels. As recognition to our diligent efforts, the significant advance on the BusinessNext Info Tech100 list also inspired us to keep on delivering innovative, high-value networking solutions to our customers."

About ZyXEL Communications
ZyXEL Communications Corp. (TSE: 2391), located in Hsinchu, Taiwan, is the 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.