Parks Associates - Extending the Home Network: Audio and Video Applications to Drive New Growth.

Business Editors/High-Tech Writers

DALLAS--(BUSINESS WIRE)--June 4, 2003

Consumers beginning to warm to the idea of extending data

networks beyond simple PC connectivity; home computers

and consumer electronics seen as multimedia hubs

Householders currently using a data network are starting to look beyond basic PC-based functionality to more "entertaining" options, according to Status of Digital Networks and Applications, a newly released report by Parks Associates and the Consumer Electronics Association.

According to the report, the results of a survey of more than 1,000 U.S. Internet households, consumers are exhibiting significant interest in home networking solutions that extend the role of home computers and consumer electronics platforms. Such advanced solutions convert these devices to "media centers" for the storage, aggregation, and streaming of audio and video content. Furthermore, upwards of 20% of consumers with a data network want to connect entertainment-centric devices such as televisions, digital cameras, and home stereos to the network.

"This research establishes the growing desire among specific consumer segments for connectivity beyond the PC LAN," said Tricia Parks, president of Parks Associates and author of this report. "Current home network users - consumers who already have data networks for PC connectivity - will constitute a significant portion of the early market for multimedia networks. But in order to meet this demand, and in fact realize this market, home networking solutions must be scaleable and interoperable with existing solutions. This report provides companies planning entertainment network options and solutions with a great amount of information."

Status of Digital Networks and Applications provides the results of an online survey of U.S. Internet households completed in Q2 2003. eBrain Market Research (www.eBrain.com), a business unit of CEA, fielded the survey and compiled the data tabs. Parks Associates developed the questionnaire, analyzed the data, and developed the report from survey findings and its analysis on emerging technology markets. In total, 1,075 individuals from Internet households completed this survey, providing a statistically representative sample of U.S. Internet households.

The survey provides data on topics such as home networks, CE ownership and future purchase intentions, interest in various multimedia solutions and services, type of Internet connection in use, and mitigating factors beyond technology that will influence future CE purchases.

For additional information about Status of Digital Networks and Applications, available between now and July 15 at the early release price of $995, please contact Scott Killingsworth of Parks Associates at [e-mail] or at telephone number, 972-490-1113. For more information about report contents and to purchase online, please visit www.connectionsconference.com.

About Parks Associates: Parks Associates is a market research and consulting firm that provides information and analysis on emerging residential, small office, and light commercial technologies. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, multiclient studies, consumer research, workshops, and custom-tailored client solutions.

Its market expertise encompasses the full range of connected-home solutions, including home networks, digital entertainment, broadband and Internet services, and home systems. Parks Associates also hosts two industry events, Forum and CONNECTIONS(TM) (in partnership with the Consumer Electronics Association), each year. www.parksassociates.com.