San Jose, California. July 24th, 2001. - Cisco Systems is the leader in the local area network (LAN) and wide area network (WAN) market in Latin America, according to "The 2001 Latin America LAN and WAN hardware," the most recent study published by International Data Corporation, IDC. The study was carried out in the six largest markets in the region: Argentina, Brazil, Chile, Colombia, Mexico and Venezuela.

The value of the markets for LAN and WAN network hardware in Latin America, including LAN switches, routers, WAN switches and remote access servers reached $ 1.5 billion dollars in the year 2000, which represents 13% of the total market for hardware in the region. The LAN switches segment had a 36.2% share of the total market, followed by routers, with a 36% share, remote access servers, with a 16% share, and WAN switches with a 12% share.

Cisco's participation was dominant in each of these four LAN and WAN hardware segments, with a total market share of 52.9%, an increase of 3.9% over its market share in 1999. Cisco was followed by 3Com (14.3%), Nortel (9 %), Cabletron (4%), Lucent (4%) and Alcatel (3%). Other vendors had a 9% market share.

"Despite slowing growth in the Latin America technology sector, consistent with the rest of the world, the long term prsopect for growth remains very positive" stated Keith Goodwin, Vicepresident Americas International at Cisco Systems. "Cisco continues leading in each of the key markets, far outpacing its closest competitors. Our enterprise and service provider clients continue to select Cisco for our technological leadership and solid financial strength. We foresee great opportunities in the region for the upcoming year."

For Goodwin, "we have strengthened our relationship with partners and resellers in order to bring complete solutions to the end customer. This strength in partnering together with our important presence in all the markets, both enterprise and service providers, assures Cisco's leadership in the region."

The LAN and WAN equipment segment in Latin America is one of the markets that will experience greatest growth due to pending deregulation and liberalization measures in telecommunications. Growth in the market for voice and data convergence will make the LAN and WAN market grow in the future.

The following were the main trends for the LAN and WAN network market during 2000, according to IDC are:

LAN Switches

LAN switches dominated the LAN and WAN hardware market. Even though routers gained some ground at the expense of switches, LAN switches maintained their market share. In 2000, the total number of units delivered increased by 58.9% and the market for LAN switches grew by 4.5%.

The market for LAN switches in 2000 was dominated by Cisco, with a 36.7% market share. In 1999 it had been 32.6%. Cisco was followed by 3Com (29.8%, 1.7% less than in 1999) and Nortel Networks (12.9%, 1.4% less than in 1999).

Routers

The market for routers placed second in market share. Its market share increased from 33.7% in 1999 to 35.6% in 2.000. The number of units shipped increased by 34.4 % and the total value of the market for routers increased by 14.4 %.

In the market for routers, Cisco has an 86 % share, followed by Nortel Networks (7%), 3Com (2%) and Intel (2%). Cisco's share grew from 74.9% in 1999 to 86% in 2000. Market share for the other competitors was as follows: 3Com (4.7% in 1999 to 1.6% in 2000) and Nortel (10.6% in 1999 to 6.8% in 2000).

Remote Access Servers

The market share for remote access servers was 15.9 %. However, in terms of the number of ports sold, this market was second only to LAN switches, with almost one million ports sold, most of these in Brazil. The Brazilian market was led by the phenomenon known as "free ISP" and RAS sales increased by 300% in number of units.

Cisco was the market leader in remote access servers, with a 49% share, followed by 3Com (28%), Lucent (13%) and Nortel Networks (4%).

WAN Switches

The market value for WAN switches was US $ 184 million, 3.2% lower than the previous year (US $ 191 million).

In this market, Cisco has a 37% market share, followed by Alcatel (22%) and Nortel Networks (10%).

Participation by countries.

Argentina

The value of the LAN and WAN market in Argentina in 2000 was $ 139.8 million dollars. Routers had a 42% market share and Remote Access Servers 24.9%, due to the large investments made by service providers. LAN switches had a 24% share and WAN switches 12.1%. Cisco's total market share in Argentina was 68.1%, an increase of 1.6% over 1999.

Brazil

The value of the LAN and WAN market in Brazil in 2000 reached $ 593.2 million dollars. The market share for LAN switches was 35.9% and that for routers was 25.9%. Remote Access Servers participated with 22.5% and WAN switches with 16.6 %. Cisco's total market share in the Brazilian market was 45.4%, an increase of 1.8% over 1999.

Chile

The LAN and WAN market in Chile reached a value of $ 42.4 million dollars during 2000. Routers had a 36.5% market share and LAN switches 33.1%. Remote Access Servers accounted for 17.5% and WAN switches 16.7%. Cisco's total market share in the Chilean market was 63.9%, 13.5% greater than in 1999.

Colombia

The value of the LAN and WAN market in Colombia reached $ 100.1 million dollars in 2000. LAN switches accounted for 47.7% of the market and routers 42.4%. WAN switches represented 5.1% of the market and Remote Access Servers 4.9%. Cisco's total market share in the Colombian market reached 56.63%, a 10% increase over 1999.

Mexico

The value of the LAN and WAN market in Mexico was $ 397.8 million dollars in 2000. Routers had a 42.4% market share and LAN switches 38.4%. WAN switches participated 11% and Remote Access Servers 8%. Cisco's total market share in the Mexican market was 57.6%, an increase of 5.6% over 1999.

Venezuela

The LAN and WAN market in Venezuela during 2000 was $ 71 million dollars. Routers participated with 51.1% and LAN switches with 32.3%. The market share for WAN switches was 10.1% and for Remote Access Servers 6.5%. Cisco's total market share in the Venezuelan market was 54.4%.