Accton will continue to develop best-of-breed products to meet market needs. Over the coming year, the company is developing switches that range from Layer 2 to Layer 4, CPE and VDSL switches for telecommunications; wireless switches, VoIP Integrated Box, PoE (Power over Ethernet) switches; FTTx fiber to the curb technology; wireless multi-channel gateways and Enterprise access points¡Xand more. Accton's goal is simple: to design, develop innovative high-quality products that are easy to use, affordable, and meet market demand. That's what makes partnership work.

Trends in the industry and in the adoption of technology guide Accton's research and development focus. The company has identified several trends that will affect its choices in product development.

• The Integration of Telecom and Datacom
  As the proliferation of broadband access increases, telecommunication and data communication technologies are converging. Accton will continue to develop broadband access products utilizing multiple technologies to provide solutions for that emerging market.

• The Integration of Data, Voice and Video
  The Internet has had a dramatic effect on consumers' media expectations. Demanding data, voice, and video services are pushing service providers and enterprise users toward more cost-effective broadband solutions that can deliver higher speed and more reliable QoS to existing core networks. Accton's broadband solutions provide Services Level Agreement (SLA) and QoS all the way to the customers' premises, allowing service providers to differentiate themselves with potential customers by offering extended services. Accton's broadband solutions guarantee a connection without limits.

• The Integration of Wired and Wireless Communication
  There were more than 3 million portable computers equipped with built-in wireless networking capability sold in 2002 (MIC), and that's just the beginning of an explosive adoption phase. The proliferation of hot spots and increasing demand for shared broadband access, in addition to the new home entertainment networking technology will mean continued growth for Accton's wireless business.

• The Enterprise Continues Growth
  The global enterprise networking market will continue to grow, as systems are upgraded and companies add WLAN and SAN, increase security, and look to VLAN solutions. According to Instat/MDR, enterprises spent $225 billion on 2002; and by 2006, they will be spending more than $256 billion on information technology. Improvements in the security, performance and reliability of wireless networking technology will spur greater rates of wireless adoption in Enterprise environments.