Drive for Cheap Internet Phone Calls Accelerates Growth of VoIP in the Home



Linksys Ships Over One Million Voice Over IP Ports to the Consumer Market in Less Than 6 Months


IRVINE, Calif. -/9 March, 2005 - Wi-Fi Technology News/- Linksys?, a division of Cisco Systems, Inc., and the leading global manufacturer of broadband, wireless, and networking hardware for home, Small Office/Home Office (SOHO) and small business environments, announced it has shipped over one million Voice over IP (VoIP) ports* in six months, making it the most successful product launch in Linksys history. Linksys products for Voice over IP include a phone adapter and wired and wireless routers with phone ports. These products, bundled with a VoIP service, enable customers to make phone calls using their broadband connection.

Since August, Linksys has announced relationships with leading broadband VoIP service providers including AT&T CallVantage?, PeopleCall in Spain, PhoneSystems.net in France, Verizon VoiceWing?, and Vonage? in both North America and the United Kingdom. Linksys hardware, combined with these service offerings, makes a complete, easy-to-install solution for consumers.

Synergy Research Group, a leading market research firm, reports that today there are close to 8 million home users worldwide using VoIP to make phone calls over their broadband connections. By 2009, Synergy anticipates this number to grow to 58.9 million home users using VoIP to talk to friends and family around the world using broadband and VoIP technology. ?The growth of consumer VoIP subscriptions is fueling the growth of hardware products like phone adapters from Linksys,? said Jeremy Duke, President & CEO, Synergy Research Group. ?Linksys has developed a strong go to market strategy via bundling its hardware with popular VoIP service providers. This approach has helped Linksys achieve the leading position in the worldwide consumer VoIP hardware market in Q4 2004.?

?Going from 0 to 1 Million ports shipped in six months makes Voice over IP the fastest selling technology and product line in Linksys history,? said Cisco-Linksys president, Charles Giancarlo. ?Consumers are responding to the increased flexibility and functionality of Internet voice service through their existing broadband service.? Giancarlo added, ?Our retail partners, such as Best Buy, Staples and others, have helped increase the awareness of VoIP technology by giving it a place on their store shelves and using marketing vehicles to educate their customers on its benefits.?


Product:----------------------Time to Reach One Million Units:

- Voice over IP---------------6 Months
- Wireless LAN----------------13 Months
- Ethernet Routers------------16 Months
- Ethernet Switches-----------27 Months


2005 Spring VON
The Linksys line of VoIP products will be demonstrated at 2005 Spring VON Conference and Expo at the San Jose Convention Center. Linksys products can be found at the Cisco booth #1011.

About Linksys
Founded in 1988, Linksys, a Division of Cisco Systems, Inc., (NASDAQ: CSCO) is the global leader in VoIP, Wireless and Ethernet networking for both consumer and SOHO users. Linksys is dedicated to making networking easy and affordable for its customers, offering innovative, award-winning products that seamlessly integrate with a variety of devices and applications. Linksys provides award-winning product support to its customers. For more information, visit http://www.linksys.com.