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Service Provider Edge Router Market Grows as Competition Increases, According to Dell’Oro Group

Alcatel Captures Lion’s Share of Market Increase Over 2Q 2005

REDWOOD CITY, Calif. – August 21, 2006 – According to a newly published report by Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, worldwide sales of service provider edge routers increased 30 percent over the same period last year with Alcatel recording the largest revenue increase over the same period.

“Service Providers are driving strong demand for edge routers as they gear their networks for the next generation of broadband services such as IPTV and VoIP,” said Shin Umeda, Principal Analyst of Router research at Dell’Oro Group. “Cisco and Juniper remain the market leaders, but Alcatel and Redback are gaining ground with strong product offerings optimized for these new services,” added Umeda.

Worldwide Service Provider Edge Router Market Leaders (Revenue)

Service Provider Edge Router Market	2Q06	Y/Y Growth
Manufacturers’ Revenue	$0.9 billion	30%

Vendor	Rank	Y/Y Growth
Cisco	1	19%
Juniper	2	-7%
Alcatel	3	354%
Redback	4	114%

About the Report

The Dell’Oro Group Routers Quarterly Report offers complete, in-depth coverage of the market with tables covering revenue, average selling prices, unit and port shipments (by speed T1/E1, T3/E3, OC-3/STM-1, OC-12/STM-4, OC-48/STM-16, OC-192/STM-64, 100Mbps Ethernet, 1000Mbps Ethernet, and 10 Gbps Ethernet), and price for router and WAN switch technologies. To purchase this report, call Margaret Miles at +1.650.622.9400 x225 or email at Margaret@DellOro.com.

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.

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