SHIPMENTS OF ELECTRONIC/ELECTRICAL COMPUTER ACCESSORIES TO THE U.S. AFTERMARKET WILL GROW TO MORE THAN $3.6 BILLION BY 2006: VDC FINDS THAT WIRELESS LANS (WLANS) AND USB HUBS ARE LEADING THE WAY

While WLANs and USB connectivity are in some ways directly in competition with each other, as WLANs preclude the need for wired connectivity, VDC believes that both wireless networks and the USB standard will experience a tremendous increase in popularity through 2006.

Natick, Massachusetts - A new study by Venture Development Corporation (VDC) entitled, The U.S. Aftermarket for Computer Accessories, Fourth Edition, concludes that the U.S. aftermarket shipments of 10 selected electronic/electrical computer accessories reached $1,936.3 million in 2001, and is forecast to reach $3,652.2 million in 2006, for a compound annual growth rate (CAGR) of 13.5%.

Ranking of Selected Electronic/Electrical Computer Accessories by Growth Rate
(From Fastest to Slowest)

- Wireless LANs
- USB Hubs
- Computer Cables
- Universal Power Supplies Under 1kVA
- Game Controllers
- Plug-In Surge Suppressors
- Pointing Devices
- Keyboards
- Printer Switches
- Power Control Centers

To view the entire press release including charts go to
www.vdc-corp.com/other/press/02/pr02-28.html

WLANS ARE THE FASTEST GROWING PRODUCT CATEGORY

The fastest growing electronic/electrical computer accessories are wireless LANs (WLANs), forecast to grow, on a dollar volume basis, at a CAGR of 33.2% through 2006. VDC has identified the key factors driving demand for WLANs, including:

- Continued price reductions in WLAN hardware

- The proliferation of 5 GHz 802.11a solutions

- Integration of WLAN NICs into appliances ranging from laptops and hand held devices to consumer electronic devices such as TVs and stereos

USB HUBS WILL ALSO EXHIBIT STRONG GROWTH

VDC expects USB hubs, which are devices used in conjunction with USB peripherals to allow more devices to be attached to a PC and to each other, and to provide moderate signal boosting to increase the maximum allowable distance between a PC and a USB device, to grow at a CAGR of 26.6% through 2006. The key drivers of this growth include:

- The emergence of USB as the dominant computer connectivity standard

- USB's technical specifications, which limit the length of USB cables, and the potential to attach as many as 127 peripherals or devices to a single PC, will drive demand for USB hubs, which effectively increase the maximum allowable distance between a PC and peripheral, and increase the number of USB ports for a computer

While WLANs and USB connectivity are in some ways directly in competition with each other, as WLANs preclude the need for wired connectivity, VDC believes that both wireless networks and the USB standard will experience a tremendous increase in popularity through 2006.

August 2002

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ABOUT THE REPORT

This report, The U.S. Aftermarket for Computer Accessories, Fourth Edition, is a multiclient study designed to provide subscribers with market intelligence to support strategic marketing and product planning decisions. The report analyzes, sizes and segments the market among 27 non-electronic and electronic/electrical categories:

COMPUTER ACCESSORIES

Non-Electronic

- CD-R Labeling Kits
- CD-R Labels
- Cleaning Kits
- Computer Starter Kits
- Computer Tool Kits
- Copy Holders
- Desktop Printer Stands
- Dust Covers
- Keyboard Drawers/ Holders
- Media
- Media Storage
- Monitor Arms
- Monitor Overlay
- Mouse Pads
- Notebook PC Carrying Cases
- Security Devices
- Wrist Rests

Electronic/Electrical

- Computer Cables
- USB Hubs
- Game Controllers
- Keyboards
- Plug-In Surge Suppressors
- Pointing Devices
- Power Control Centers
- Printer Switches
- Uninterruptible Power Supplies (UPSs) under 1 kVA
- Wireless LANs (WLANs)

In addition, VDC has included extensive channel research and an end-user mail survey, as well as vendor profiles of the leading computer accessories suppliers.

ABOUT VDC

Venture Development Corporation, a technology market research and strategy firm, was founded in 1971 by graduates of Harvard Business School and MIT. Over the years, VDC has developed and fine-tuned a unique and highly successful methodology for forecasting and analyzing dynamic technology markets. VDC has extensive experience in providing analysis of consumer electronics and electronic component markets. This includes multiclient and custom consulting engagements in a broad spectrum of related topics, including 12 volt electronics (including in-car computing), surge suppressors, uninterruptible power supplies, keypads and keyboards, keyboard alternative input devices, and a variety of electronic components.

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Report Availability
www.vdc-corp.com/other/reports/01/br01-24.html

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For further information regarding the "The U.S. Aftermarket for Computer Accessories" contact:

Chris Lanfear, Project Manager
chrisl@vdc-corp.com

Marc Regberg, Senior Vice President
msr@vdc-corp.com

If you would like to subscribe to more VDC updates go to:
http://www.vdc-corp.com/subscriptions