Polycom, TANDBERG and Sony Video Conferencing Sales to Soar According to In-Stat/MDR.

Business Editors & High-Tech Writers

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--March 11, 2002

Developments such as Polycom Office(TM), Forgent's VNP, and VCON's MMX, are making video conferencing into a "killer application," according to In-Stat/MDR (http://www.instat.com).

As a result, the high-tech market research firm reports that the worldwide market for set top box and room video conferencing systems will grow from approximately $772 million in 2001 to more than $2.2 billion in 2006.

"We see Polycom emerging as the key industry driver," said Gerry Kaufhold, a principal analyst with In-Stat/MDR.

The company's rapid growth, through well-planned and intelligent acquisitions, has created an entity that truly covers all the bases of the Video Conferencing game, from end point equipment to network infrastructure, to partnerships, to user groups with global appeal and to the world's most powerful distribution channel partners.

According to Kaufhold, "The final link in the chain that will drive Video Conferencing over the top is Polycom Office(TM), which provides an integrated, fully-connected solution that makes Video Conferencing not only very easy to manage and use, but creates momentum to connect Video Conferencing, through Internet Protocol networks, to a host of streaming media applications."

In-Stat/MDR has also found that:

-- TANDBERG will take control of their high-end segment of the market,
extensively expanding into IP-based and wireless applications. Sony's Video
Conferencing Group will continue to be a major player, providing the widest
overall variety of high quality Video Conferencing components and solutions,
and Forgent's Video Network Platform will engage all the other players in the
market, to make everything work together.

-- Attitudes towards the use of, and participation in, Video Conferencing
activities are changing to a more positive tone. In a survey included in the
report, 75% of respondents said "Yes" to the question -- "Do you think your
company should make more use of Video Conferencing in the future?"

-- North America represents, by far, the largest individual market for Video
Conferencing equipment, and will experience explosive growth during the coming
two years. Europe, Asia and the Rest-of-the-World (ROW) countries each present
significant market growth opportunities as well.

The report, "Video Conferencing Systems -- Polycom To Raise The Industry Tide" (#IN020019MB), includes a discussion of, and presents In-Stat/MDR's conclusions about, the market for Video Conferencing equipment. To purchase this report, or for more information, please visit http://www.instat.com/catalog/cat-dt.htm or contact Courtney McEuen at 916/984-1179; [e-mail]. The report price is $2,995.

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 a unit of Reed Business Information, a leading provider of critical information and marketing solutions to business professionals and a member of the Reed Elsevier plc group.