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Heavy Reading Report Gauges Market Prospects For Communications Chip Makers

Exclusive Survey Pinpoints Buyer Attitudes Toward Suppliers In Critical Market Sectors

NEW YORK, Jan. 15 /PRNewswire/ -- Heavy Reading (http://www.heavyreading.com/), the market research division of Light Reading Inc., today published the most comprehensive market perception study available to date covering one of the networking industry's most important sectors: communications chips.

Heavy Reading's 2004 Communications Chips Market Perception Study is a 99-page report based on an exclusive, invitation-only survey of 449 purchasers of chips used in a broad spectrum of telecom network equipment. Respondents gave their perception of 117 vendors (54 public, 63 private) in 31 product categories, identifying which companies they recognize and consider market leaders in price, performance, quality and reliability, and service and support.

Survey participants included product managers and engineers from hundreds of equipment makers and systems integrators, with nearly half of all responses coming from the world's 25 largest manufacturers, including Cisco Systems, Nortel Networks, Alcatel, and Lucent Technologies.

  Key findings include:

  -- Most comm chip market segments are highly competitive, with no single
     vendor dominating buyer mindshare. With only a couple of exceptions,
     competition in comm chips product sectors is wide open. Leading
     companies such as Motorola (NYSE: MOT), Broadcom (NASDAQ: BRCM), and
     PMC-Sierra (NASDAQ: PMCS) are all seen as worthy suppliers - but with
     definite weaknesses in their product lines.

  -- Intel (NASDAQ: INTC) has made only limited progress in the comm chips
     market. Buyers see Intel as the best provider of network processors,
     but the company's reputation is lagging in many other comm chip
     categories.

  -- Startups still have an opportunity to influence some of the developing
     comm chips segments. New chip makers are earning high marks for
     leadership in several emerging and important product categories.

Report subscribers gain access to a searchable database of results, which can be analyzed according to geographic region, company type, and respondent job category. This enables:

  -- Chip makers to analyze strengths and weaknesses in different market
     segments.

  -- Investors and financial analysts to drill down on vendor credibility
     with customers.

  -- Buyers of comm chips to identify which suppliers are seen as market
     leaders on price and on other vital aspects, such as product
     performance.

Heavy Reading's 2004 Communications Chips Market Perception Study is priced at $3,750. Breakout reports for two specific market sectors -- access/enterprise chips and transport chips -- are available for $2,495 each.

For more information on this report, or to request a free executive summary, contact:

   Dave Williams
   Sales Director, Heavy Reading
   415-293-8470
   dave.williams@heavyreading.com

   Press/analyst contact:
   Dennis Mendyk
   Managing Editor, Heavy Reading
   201-587-2154
   mendyk@heavyreading.com

  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.

CONTACT: Dave Williams, Sales Director, +1-415-293-8470, or
dave.williams@heavyreading.com, or Press-analyst Dennis Mendyk, Managing
Editor, +1-201-587-2154, or mendyk@heavyreading.com, both of Heavy Reading

Web site: http://www.lightreading.com/

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