VDC Finds Switch Vendor Web Sites Ill-Prepared For E-Commerce

Vendors need to improve their web presence in order to match the increase in OEMs purchasing switches electronically.

Natick, Massachusetts -- Over 40% of OEMs expect to purchase switches electronically in 2005, according to a recently completed study by Venture Development Corporation (VDC). Despite this, few vendors are sufficiently prepared to meet this demand.

VDCs ratings of 50 leading switch vendor Web sites reveals surprisingly few sites offer features OEMs most desire, including e-commerce features, site search engines and downloadable data sheets. In the report, Web sites are rated on features provided, product representation and site usability, weighted by OEM demands.

According to VDC analyst Jacob Millette, A key point to make is that it is vital for a switch vendor to establish a Web presence. Even a simple Web site with the most basic and succinct information is a must. It is an indisputable fact that, more often than not, OEMs are turning to the World Wide Web when looking for suppliers. The key trend, as can be evidenced by viewing a number of switch vendors Web sites, is that it is becoming increasingly important to maintain a fair amount of data and information on that site."

Mr. Millette goes on to say that as the Web becomes an indispensable access point to the vendor space, OEMs will start to gauge and equate the abilities of the provider and the quality of its products with the suppliers level of Internet presence and Web site quality. This may be unfair and unjustifiable, but many argue it is just the nature of commerce and marketing."

E-Commerce: Opportunities, Pitfalls and Trends for Switch Manufacturers is the seventh volume of VDCs 2002 Global Switch Market Intelligence Service. Other highlights of the report include detailed investigations of features offered on switch vendor Web sites as well as the features desired by OEMs and discussions of current trends affecting vendors' e-commerce and Internet endeavors.

EXHIBIT
CURRENT AND FORECAST ON-LINE SWITCH PURCHASES
(Percent OEM Respondents Purchasing Switches Electronically)

CURRENT ON-LINE SWITCH PURCHASES
-Purchase On-Line - 17.3%
-Do Not Purchase On-Line - 82.7%

2005 ON-LINE SWITCH PURCHASES
-Purchase On-Line - 40.3%
-Will Not Purchase On-Line - 59.7%

To view the press release including charts go to:
www.vdc-corp.com/components/press/02/pr02-06.html

ABOUT VENTURE DEVELOPMENT CORPORATION

VDC is a technology market research and strategy firm with over 30 years of experience in providing market research, strategic analysis and consulting services to technology companies worldwide. VDC offers its clients a wide variety of research solutions tailored to meet their strategic business needs. These include highly customized consulting engagements, ongoing research services and select industry investigations. Through considerable industry contacts, VDC also provides services related to acquisitions and the generation of key account leads.

For further information and pricing on the 2002 Global Switch Market Intelligence Service," please contact
John A. Gordon, Senior Analyst, or Marc Regberg, Senior Vice President at:

Venture Development Corporation
One Apple Hill Drive ¨ Ste. Box 8190 ¨ Natick, Massachusetts 01760
Tel: 508.653.9000 ¨ Fax: 508.653.9836 ¨ Web: www.vdc-corp.com
E-mail: msr@vdc-corp.com
or jgordon@vdc-corp.com