Fujitsu Network Communications Inc.

Fujitsu Continues North American SONET Market Leadership According to RHK

Richardson, TX, January 25, 2005 — Fujitsu Network Communications Inc. today announced that RHK, a leading independent telecom research and advisory service firm, has named Fujitsu as the leading supplier of SONET aggregation equipment to North American carriers.

In RHK’s 3Q04 Market Update, Fujitsu leads all other equipment vendors with a 27.7% share of this $1.39 billion annual market and generated in excess of $100 million more revenue from aggregation equipment than the closest competitor over the last four quarters. Within the aggregation market, Fujitsu has a market share in excess of 40% in the $345 million Add/Drop Multiplexer (ADM) segment and a 23% share of the $1.05 billion Optical Edge Device (OED) segment. This achievement gives Fujitsu the top position in the OED segment, which contains all next-generation aggregation equipment such as their own FLASHWAVE® 4000 Multi-Service Provisioning Platforms (MSPPs).

According to RHK, the entire North American optical networking market can be segregated into three main segments—Aggregation, Bandwidth management (DCS/OCS) and WDM (which includes metro, regional and long haul components). The Aggregation segment accounts for the majority of the market and is defined as the combination of the traditional SONET ADM market and the new OED market. OEDs represent next-generation devices that support multiple SONET rings, high-capacity grooming and advanced services within high-density chassis. By building new networks with OEDs or adding them to existing SONET networks, North American telecom and cable/MSO service providers can rapidly introduce next-generation services such as Ethernet and video transport over SONET while reducing operating costs and complexity. OEDs represent 83% of the overall Aggregation market and RHK expects that with the substitution of OEDs for ADMs, the OED portion will continue to grow.

"Fujitsu’s revenues continue to grow as the large North American RBOCs have now completely made the switch to next-generation SONET equipment," said Ron Kline, RHK program director for optical networks in North America and co author of the report. "The MSOs, government and alternative carriers also continue to provide a fertile market for OED vendors, which puts Fujitsu in a strong position in the largest high-growth optical networking segment."

"Fujitsu has dominated the ADM segment since the early 1990s due to strong sales of our ground-breaking FLM series of SONET multiplexers and we still command more than 40% of this market," said Bill Erickson, senior vice president of sales and marketing for Fujitsu Network Communications. "However, we’re also leading the transition to OED devices with our FLASHWAVE 4000 MSPPs, which have become standardized in several RBOC, CLEC and MSO networks. Within the aggregation market, total revenue from equipment sales exceeds that of our closest competitor by more than 35%."

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About Fujitsu Network Communications Inc.

Fujitsu Network Communications Inc., leveraging Tokyo-based Fujitsu’s unequalled and unique IT and Telecom portfolio, creates and delivers robust wireline and wireless solutions that boost next-generation communications networks in North America. Supported by over 150,000 professionals in more than 100 countries with revenues of $45 billion, Fujitsu helps its customers fuse information and networking technology with commercial value.
For more information, please see: http://us.fujitsu.com/telecom

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