Camera Phones, Digital Still Cameras Push Image Sensor Market to New Heights Reports In-Stat/MDR.

Business Editors/High-Tech Writers

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Sept. 29, 2003

The image sensor market has seen continued growth over the past year, marking a bright spot in the beleaguered semiconductor sector, reports In-Stat/MDR (http://www.instat.com). Overall, the high-tech market research firm expects the image sensor market to grow at a 28.1% annual rate in unit terms through 2007. However, due to ASP erosion, annual revenue growth will be just 8.2%.

Total unit shipments of CCDs and CMOS will be nearly even by 2007. Charge-Coupled Devices (CCDs), the incumbent technology in this segment, are currently seeing tremendous growth, driven primarily by growth in the markets for camera phones and digital still cameras. Complimentary Metal Oxide Semiconductor (CMOS) image sensors have continued to see growth in the lower end of the camera market, particularly in PC cameras, low-end digital still cameras and dual-mode cameras, which combine PC and still camera functions. "The death of the CCD industry, at the hands of CMOS image sensors, has been greatly exaggerated," said Brian O'Rourke, a senior analyst with In-Stat/MDR. "CCDs are experiencing a renewed industry dominance, both in unit shipments and revenues."

In-Stat/MDR has also found that:

-- CMOS image sensors are expected to grow at roughly twice the

rate of CCD sensors through 2007.

-- In the market for linear image sensors for applications such

as fax machines and scanners, CCDs have long been challenged

by Contact Image Sensors (CIS), a more integrated, lower cost

solution. The CIS competition has been forcing CCD

manufacturers into lowering prices over the last few years.

-- Japanese companies, including Sony, Matsushita, Sharp and

Toshiba, continue to lead the world in CCD production for

high-volume applications such as digital still cameras,

camcorders, security cameras and camera phones.

The report, "CCDs & CMOS: Zooming in on the Image Sensor Market" (#IN030702MI), provides a complete review of the 2002 market for image sensors, as well as annual forecast numbers through 2007. CCD, CMOS and CIS market shares for each application, in both units and revenues, are provided for the entire forecast period. This report contains extended analysis of the market for camera phones, the fastest growing market ever for image sensors. Profiles of the world's leading image sensor suppliers are also presented. To purchase this report, or for more information, please visit: http://www.instat.com/catalog/Ccatalogue.asp?id=161 or contact Erin McKeighan; [e-mail] or 480-609-4551. The report is priced at $3,495.

About In-Stat/MDR

In-Stat/MDR (http://www.instat.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products. This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end users.

In-Stat/MDR is part of the Reed Electronics Group, a division of Reed Elsevier (www.reedelsevier.com), a world-leading publisher and information provider. With over 38,000 employees worldwide, Reed Elsevier operates in the science & medical, legal, education and business-to-business industry sectors, providing high value and flexible information solutions to professional end users, with increasing emphasis on the Internet.