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Network Processors Finally Enter the Telecom Equipment Mainstream, New Study Finds Heavy Reading Report Says Growing Use of NPUS by Major Manufacturers Boosted Sector Revenues by 150% In 2004 NEW YORK, Jan. 21 /PRNewswire/ -- After several years of poor sales, makers of network processor components are finally seeing a meaningful rise in revenue, as many of the world's largest telecom equipment makers start incorporating network processors into their products, according to a major new study released today by Heavy Reading (http://www.heavyreading.com/), the market research division of Light Reading Inc. Network Processors: A Heavy Reading Competitive Analysis delivers a complete accounting of the network processor market, with detailed technology and price comparisons of more than 80 different products from 16 manufacturers, including Intel Corp. (NASDAQ:INTC), Agere Systems Inc. (NYSE:AGR.A), Applied Micro Circuits Corp. (NASDAQ:AMCC), and Broadcom Corp. (NASDAQ:BRCM). The report includes full coverage not only of components now on the market, but also those that are scheduled to be available in the next year. Although first-generation network processors hit the market five years ago, the collapse of the telecom investment bubble kept equipment makers from developing new products to take advantage of the technology, notes report author Simon Stanley, a Heavy Reading Analyst at Large. "Unit sales of network processors began to grow in 2003, leading to significant recovery in 2004," says Stanley, who estimates that network processors generated $150 million in revenue last year -- a 150 percent increase over 2003 revenues. The report covers all components in these four product categories: * Control-plane processors * Communications processors * 2.5-Gbit/s network processing units (NPUs) * 10-Gbit/s NPUs Other key findings of the report include: Network processors are now a mainstream technology. The world's largest telecom equipment vendors are now using network processors for applications from the edge to the core of the network. These manufacturers include Alcatel SA, Cisco Systems Inc., Huawei Technologies Co. Ltd., Lucent Technologies Inc., Siemens AG, and Samsung Corp. Carrier access is the key market for NPU suppliers in 2005. Demand for network processors is highest in the access network. Components vendors are developing fast-path NPUs and integrated communications processors to address this market. 10-Gbit/s NPUs are now shipping in volume. Five different components vendors are now in commercial production with 10-Gbit/s NPUs: AMCC, Bay Microsystems, EZchip, Intel, and Sandburst. Integrated packet switching is fast becoming a standard feature of control-plane processors. New control-plane processors from Broadcom, Freescale, and PMC-Sierra integrate a packet-switching capability. Network Processors: A Heavy Reading Competitive Analysis, an 80-page report, is published in PDF format and costs $3,495. The price includes an enterprise license covering all of the employees at the purchaser's company. For more information, or to request a free executive summary, contact: Dave Williams Sales Director, Heavy Reading 415-321-3750, ext. 30 Press/analyst contact: Dennis Mendyk Managing Director, Heavy Reading 201-587-2154 About Heavy Reading Heavy Reading is an independent market research organization offering quantitative analysis of telecom technology to service providers, vendors, and investors. Its mandate is to provide the comprehensive competitive analysis needed today for the deployment of profitable networks based on next- generation hardware and software. DATASOURCE: Heavy Reading CONTACT: Dave Williams, Sales Director, +1-415-321-3750, ext. 30, , or Dennis Mendyk, Managing Director, press/analyst contact, +1-201-587-2154, , both of Heavy Reading Web site: http://www.lightreading.com/ http://www.heavyreading.com/

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