CIR Releases Additional Forecasts of Optical Switching Sub-systems and Components Markets.

Business Editors/High Tech Writers

CHARLOTTESVILLE, Va.--(BUSINESS WIRE)--June 15, 2001

With the downturn in telecom spending, companies looking to sell optical switching sub-systems and components should realign their strategies to address a U.S. market that Communications Industry Researchers Inc. (CIR) believes will grow from $152 million in 2001 to $1.1 billion in 2005.

The carriers' proven and continued preference for hybrid optical/electrical crossconnects will require suppliers to address more focused growth segments rather than the All Optical Network revolution.

--The fastest growing technology segment will be 3D MEMS. While the market has yet to see mass production quantities, CIR expects this market to grow to just under $300 million in annual sales by 2005.

--By the time 2005 rolls around, MEMS products will, in total, account for 54 percent of the total U.S. optical switching sub-systems and components market. The next biggest technology segment will be liquid crystal products, which will account for about 18 percent of the overall market.

--By 2005, the largest application for optical switching components and sub-systems will be for optical crossconnects (OXCs). This application segment will by then account for about $580 million in revenues.

--CIR expects protection switching will continue to grow at approximately 40 percent annually, but that small solid-state, liquid crystal and MEMS switches will gradually take over this segment from the traditional opto-mechanical switches.

--CIR expects to see growth opportunities in the above 64-port component and sub-systems segment. Almost non-existent now, CIR believes that this segment will reach $230 million by 2005.

The forecasts were based on numerous interviews conducted by CIR analysts with manufacturers of optical components, sub-systems and equipment and also with service providers. The forecasts in this recent CIR report cover the four product segments in which the components/sub-systems will be used: Long-haul optical crossconnects (OXCs), small OXCs, optical add-drop multiplexers (OADMs) and protection switching. Within each application segment are forecasts by port count and also by technology. All of the forecasts in OPTICAL SWITCHING SUB-SYSTEMS AND COMPONENTS: MARKETS AND TRENDS are provided in both volume and value terms and within each technology category, forecasts are broken down by components and sub-systems.

This CIR report also includes profiles and strategic assessments of approximately 30 vendors of optical switching sub-systems and components, along with case studies and analyses of the optical switching component/sub-system requirements of 14 leading equipment vendors. The report contains a detailed assessment of all the major technologies currently being proposed for optical switching in addition to the forecasts listed above.

CIR's new report is available to interested buyers at a cost of $4,500 for hard copy and may also be purchased in electronic format. Additional information about the report, including a table of contents and ordering information is available CIR's Web site (www.cir-inc.com) or contact Robert Nolan at CIR's main office at [phone] ext. 15 or [e-mail] . Members of the accredited trade press may receive a full Executive Summary as well as schedule interviews with the analysts of this report by contacting Lisa Rogers at [phone] ext. 13 or [e-mail] .

CIR is a leading industry analyst firm specializing in the areas of Fiber Optic Networking Systems, Software and Components. Through its reports, market advisory services and custom client engagements, CIR provides insightful research, analysis and consulting services available for the optical market. CIR relies upon service provider activities and "demand side" research as the basis for its opinions and forecasts. The firms' results are market oriented and not vendor sponsored.