Date: Thu, 9 Mar 2000 18:12:18 -0700

The core networking hardware market is evolving from fast, yet rigidly
defined ASICs, to a new breed of fast and flexible Network Processors.  In
1999, Network Processor revenue was only $128 million, but by 2004, we
forecast revenue to top $2.9 billion, a compound annual growth rate of
nearly 63%.

Ever-increasing bandwidth demands being placed on local and wide-area
networks are driving the growth of Network Processors.  The next generation
networking hardware platforms must be able to prioritize and process data,
voice, and video traffic at wire speed to be competitive in the expanding
networking market.  All networking core technology, from routers and Layer 3
Ethernet switches to ATM WAN and LAN switches will require a Network
Processor to effectively manage networking traffic.

In the industry's first comprehensive forecast, we identify the following
trends within the Network Processor market:
* The Internet explosion continues to keep pressure on the leading core
networking hardware vendors for a faster and better managed network, which
in turn will increase the Network Processor adoption rate in all market
segments.
* The current market profile of the Network Processor vendors consists of
established vendors versus start-up vendors.  To gain a market advantage, or
entry, mergers and acquisitions will continue to consolidate the Network
Processor market.
* Routers and Layer 3 Fast Ethernet and Gigabit Ethernet Switches will be
the major driving force behind the five-year revenue and unit forecasts of
the Network Processor market.

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This MarketAlert is drawn from Cahners In-Stat Group's report, Zero to Hero:
The Emerging Network Processor Market, #NT0001MS. The report includes a
discussion of technologies, networking market overview, vendor profiles, and
a five year market forecast.  This report is part of Cahners In-Stat Group's
new Network Technology Service, which covers the applications and technology
within the networking market.   To purchase the reports, or to obtain more
information about the services, please call Matt Woods at 617.630.2139;
mwoods@instat.com or visit http://www.instat.com/catalog/cat-nt.htm to
purchase online. The price of the report is $3,495.

Cahners In-Stat Group (http://www.instat.com) covers the full spectrum of
digital communications research from vendor to end-user, providing the
analysis and perspective that allows technology vendors and service
providers worldwide to make more informed business decisions.
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