1394 Trade Association Cites Strong FireWire Growth Across Top Market Sectors; Calls Interoperability Top Priority, Sees New Applications in Home Networking, Automotive, Wireless 1394.

Business/Technology Editors

DALLAS--(BUSINESS WIRE)--Aug. 8, 2002

In-Stat/MDR Report Cites 33 Percent Expansion in 2001, Predicts

21 Percent in 2002

Leaders of the 1394 Trade Association today predicted significant increases for consumer and computer products equipped with the IEEE 1394/FireWire interface, despite the electronic industry slowdown, competition from alternative interfaces, and the discussion about copy protection.

James Snider, executive director of the 1394 Trade Association, said the annual report on FireWire from In-Stat/MDR cited the growth of 1394 in consumer electronics markets in 2001, along with its increasing presence in notebook PCs. "In-Stat/MDR has followed the advances of IEEE 1394 since commercial inception, and again this year has produced a thorough and accurate report," Snider said. "We continue to see increasing interest in 1394 worldwide, including China, Taiwan, Korea, and Europe. The arrival of the new 1394b version, along with completion of new automotive and wireless 1394 standards, will provide another boost to FireWire by the end of this year."

The In-Stat/MDR report, published Aug. 5, cites 1394's gains in the consumer electronics markets, along with continuing growth in the PC sectors. According to In-Stat, total 1394 devices worldwide grew by 33 percent in 2001 compared with 2000. Growth will continue by 21 percent in 2002, said the report, "as the interface penetrates more models in the retail PC, digital camcorder, and other consumer electronics market, and emerges into new applications, such as automotive."

Snider said that dozens of new 1394 equipped products are introduced each month throughout the consumer and computer markets. He predicted that by the end of this year almost 70 percent of new notebook PCs would include FireWire. "In light of the industry slowdown that we have experienced, growth of 33 percent and 21 percent in consecutive years is phenomenal."

The new report also suggests significant future opportunities for 1394, but cites some potential challenges, including interface alternatives like USB 2.0, the need for new 1394-based applications, and the copy protection issues raised by the major motion picture studios.

Based on the rapid increase of 1394 A/V products entering the market in 2001, Snider said that the copy protection concerns are not substantive. "The Congress has consistently supported the consumer's right to record video for personal use. The only technology which enables this is FireWire."

Snider said advances to the standard are already providing new application models, including home networking and wireless 1394 capabilities. He called interoperability "one of the top priorities" for the 1394 Trade Association over the next 12 months as the standard expands into new products and markets. "We are putting on the full court press with compliance to ensure that the end user experience continues to fuel the steady deployment of 1394 in innovative products," he said. "We have always felt that 1394 enabled people to do things they have never been able to do before. The OEMs understand this and are developing terrific new products. The 1394 TA is dedicated to making certain that the consumer has the best possible experience when using FireWire."

For more information on the In-Stat/MDR report, visit www.instat.com

The 1394 Trade Association is a worldwide organization dedicated to the enhancement and advancement of the 1394/FireWire standard. The association maintains a rigorous compatibility and interoperability program, and supports more than a dozen technical work groups. For more information and a complete list of all products with IEEE 1394, visit www.1394ta.org