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Home Market to Reach $9.2 Bil by 2006"

SCOTTSDALE, Ariz., October 1, 2001 - The connected home market, consisting of home networking equipment and software, residential gateways and home control and automation products, will grow from $1.4 billion in 2001 to $9.2 billion worldwide by 2006, according to Cahners In- Stat Group (<>). The high-tech market research firm finds that the connected home market has been spurred over the past year by a surge in popularity of wireless networking technology and basic home routers to enable broadband sharing.

"We've finally seen the hockey stick," states Michael Wolf, a Director with In-Stat. "After years of asking questions and learning about connectivity, the consumer has begun to see the value of networking a home, despite a tough economic environment. Home networking has proven to be one of the few bright spots in today's otherwise challenging technology market." Wireless networking has increased the popularity of home networking over the past twelve months. Other factors that will continue to drive the positive momentum are:

- The recognition among consumers of the need for network security, as they turn to home routers and residential gateways for "firewall" protection with an always-on connection

- The release of Windows XP, the first true "home-network friendly" operating system from Microsoft

- The emergence of the home server in coming years as a distributor of content to the different end points over the home network

- The gradual build in interest in home networks among broadband service providers as an important distribution platform for new services

Despite the positive momentum in the market, challenges lay ahead for the market. "One of the positives in the home networking market - wider integration of home connectivity at lower prices for consumers - is one of the continued challenges for the vendor community. Vendors will need to work hard to make all these connections work at the higher levels as well as be able to make money from their investments in this technology," states Wolf.

The report, "The Digital Domicile: The Exploding Market For Home Networking Technology and Services" (#RC0108HN), discusses the different markets for home networking technologies and includes forecasts, market shares for home networking equipment, as well as in depth discussion of the different markets and technologies. To purchase this report or for more information, please visit <> or contact Courtney McEuen at 916.984.1179; <> the report price is $3,795 USD.

Cahners In-Stat Group (<>) 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.

In-Stat is a unit of Cahners Business Information (<>), a leading provider of critical information and marketing solutions to business professionals and a member of the Reed Elsevier plc group.

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