COMMUNICATIONS NETWORKS CONTINUE TO SHOW STRONG GROWTH
According to the November Release of the Wendover-Global Insight IT Spending Index

Haverford, PA, December 13, 2004 - The Wendover-Global Insight IT Spending Index for the month of November 2004, increased nearly 70% over last quarter's Q3 2004 average, (Figure 1). Key components in communications networks continue to drive growth for IT spending. Despite end-of-year budget effects, the sales potentials indicated by the survey continue to be quite robust and consistent with other measures of IT recovery and growth (Figure 2).

The index values are reflective of the underlying strength in communications equipment and services, particularly in IP telephony, networking services, and broadband equipment and services. Other product areas have also shown similar growth paths because of industry factors. Growth in spending on manufacturing software is indicative of the expansion in manufacturing generally. Governance and reporting requirements appear to be a significant factor in the continuing increases in spending levels on accounting software.

The Wendover-Global Insight IT Spending Index measures the intentions of IT decision-makers to invest in new capital projects, typically purchases that will close in the next six to nine months. Wendover Corporation completes 133,000 surveys annually with IT decision-makers at 80,000 of the largest corporations throughout the U.S. and the United Kingdom, including every Fortune 500 corporation.

The Index is pegged at 100 points in Q4 1999. Surveys conducted since then have generated 20 quarters of historical data. The IT Spending Index is published monthly through a partnership of the two companies, Wendover Corporation and Global Insight, Inc.

Wendover-Global Insight IT Spending Index

• Spending on network equipment and services continue to show an underlying strength (Figure 3). Anticipated spending on network equipment has been buoyant for several quarters and bodes well for equipment providers. Spending on services shows steady strength in VPN, security services and IP telephony services.
• Driven by broadband services, web services and e-business applications, survey results continue to indicate robust spending plans for Internet services and e commerce services. (Figure 4).
• Complementary to networking growth, survey results indicate spending on fiber, Cat 5, Cat 5e, and Cat 6 will double from Q3 2004's Cabling index value. (Figure 5).
• Respondents continue show solid spending on Accounting/Finance software (Figure 6), driven in part by new business growth as well as governance issues.

In addition to distributing the IT Spending Index to the public at no cost, Wendover Corporation provides research clients with more segmented analysis from the same database. Global Insight provides its clients with broader market analysis that incorporates the IT spending data along with other business intelligence and market projections.

Note:
An Index analysis, FAQs about the survey methodology and the Index, and other information are available at: http://www.itforecast.com/ and http://www.globalinsight.com/itindex

Wendover Corporation (http://www.itforecast.com/) is a private, 16 year-old, IT business intelligence firm located in Haverford, PA. The firm completes 133,000 surveys annually with IT decision-makers at 80,000 of the largest companies throughout the U.S. and the United Kingdom, including every Fortune 500 business.

Global Insight, Inc. (http://www.globalinsight.com/) is a privately held company formed to bring together the two most respected economic and financial information companies in the world, DRI and WEFA. Global Insight provides the most comprehensive economic and financial coverage of countries, regions, industries and markets available, using a unique combination of expertise, models, data and software within a common analytical framework to support planning and decision-making. With its April 2003 acquisition of World Markets Research Centre, Global Insight also provides the world's first same-day analysis and risk assessment service covering 185 countries and 4 industries, providing insightful analysis of market conditions and key events around the world. The company has over 3,300 clients in industry, finance and government with revenues in excess of $70 million, over 600 employees and 23 offices in 12 countries covering North and South America, Europe, Africa, the Middle East and Asia.