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U.S. Bancorp Piper Jaffray Sees Wireless Local Area Networks Reaching An

Inflection Point

PORTLAND, Maine, Aug. 7 /PRNewswire-FirstCall/ -- In recent years, 802.11 technologies, also known as Wi-Fi, have developed considerably.  In his new in-depth research report entitled The Wireless LAN Report, 802.11 - Disruptive Technology, U.S. Bancorp Piper Jaffray Senior Wireless Equipment Analyst Samuel May asserts that with these developments, service providers are seriously questioning their investments in third-generation (3G) mobile data networks, and are considering the alternative/threat that wireless local area network (wLAN) hot spots pose to attracting paying data users.  May believes the industry is currently reaching a major inflection point for widespread adoption of 802.11.

A fast rise in hot spots, networks serving specific vertical markets ranging from the consumer to the corporate side of the business, represents an inflection point, the second phase of wLAN adoption, said May.

In addition, consistent with the thesis outlined in his Global 3G Report (published April 2002), May believes widespread adoption of 3G mobile data networks will be significantly delayed, and that operators will likely struggle to justify 3G investment once these networks are operational.  By contrast, in May's opinion, 802.11, with its significantly lower cost points, higher throughput, ease of deployment and ability to grow via the viral Internet model, is poised to see significant growth and success in the coming years.  He believes the essential building blocks are in place to support strong wLAN growth.

In the pure 802.11 networking market, several former leaders, such as Proxim, Inc. (PROX, #>) and Symbol Technologies, Inc. (SBL, #>), and new consumer networking specialists including NETGEAR, Linksys Group, Inc. and D-Link Systems, Inc., appear to have gained some of the momentum, says May. On the corporate side, these contenders also compete, but play second string to the larger, more enterprise-focused systems of Cisco Systems, Inc. (CSCO, #), 3Com Corporation and potential entrants such as Nokia Corporation (#ˆ).

The current landscape for wLAN systems companies also includes major personal computer (PC) vendors that have begun to embed 802.11 in laptops, as well as traditional communications original equipment manufacturers (OEMs) such as Motorola, Inc. (MOT, #), Nokia and Ericsson (#ˆ).  May believes the adoption of 802.11 technology by PC vendors and communications OEMs represents a major catalyst for the growth of the industry.

In addition, in the wireless 802.11 chipset market, Intersil Corporation (ISIL, #>) holds the leading position.  Its leading 65 percent market share and strong customer base should position Intersil to benefit substantially from the growth of the wireless LAN market, says May.  However, on the competitive front, several newcomers to the wLAN space have made strategic challenges to Intersil's market-leading position in 802.11 in recent months. May believes market leaders like Intersil face increased competition from incumbent integrated circuit (IC) manufacturers such as Lucent Technologies, Inc. (#), Agere Systems, Inc. (AGR, #), RF Micro Devices, Inc. (RFMD, #>), Texas Instruments Incorporated (TXN, #), Analog Devices, Inc. (ADI, #), Infineon Technologies AG, Broadcom Corporation (BRCM, #>), and Marvell Technology Group Ltd. (MRVL, #>); private companies such as Resonext Communications, Inc., and Atheros Communications, Inc.; and Taiwanese vendors such as Realtek.

U.S. Bancorp Piper Jaffray, a subsidiary of Minneapolis-based

U.S. Bancorp (NYSE: USB), is a focused securities firm comprised of three divisions: Equity Capital Markets, Fixed Income Capital Markets and Private Advisory Services.  The firm provides a full range of investment products and services to individuals, institutions and businesses.  The firm has over
120 offices in 23 states across the country.  The Equity Capital Markets Division focuses on the needs of growth companies in the health care, technology, financial institutions, consumer and communications growth sectors.  The firm has a national reputation for its expertise in fundamental research and equity and debt financing.  The Fixed Income Capital Markets business provides bond issuers, individual investors and institutional investors expertise in investment banking, underwriting, trading, sales and research.  The firm offers innovative solutions in corporate and government debt financings with particular expertise in corporate, health care/hospitals, real estate, higher education and government debt.  The Private Advisory Services division financial advisors provide guidance in retirement planning, education planning, estate planning and wealth accumulation.  Investors select from a wide array of products, including fee-based products, stocks, bonds, mutual funds, annuities, insurance and trust services.  U.S. Bancorp offers a comprehensive range of financial solutions through U.S. Bank, U.S. Bancorp Asset Management, U.S. Bancorp Investments and U.S. Bancorp Piper Jaffray. For more information on U.S. Bancorp Piper Jaffray, visit www.piperjaffray.com .

The following disclosures apply to stocks mentioned in this report if and as indicated: (#) U.S. Bancorp Piper Jaffray (USBPJ) makes a market in the company's securities.  (ˆ) USBPJ analysts who follow this company, or members of their household, have a beneficial interest in the company's securities. USBPJ analysts or members of their household may sell such positions while a Strong Buy, Outperform, or Market Perform rating is maintained; however, they may do so only upon appropriate USBPJ management approval.  (>) USBPJ analysts who follow this company, or members of their household, have a beneficial interest in the company's securities that were acquired in a private transaction pre-IPO.  USBPJ analysts or members of their household may sell such positions while a Strong Buy, Outperform, or Market Perform rating is maintained; however, they may do so only upon appropriate USBPJ management approval.  (@) Within the past three years, USBPJ was managing underwriter of an offering of, or dealer manager of a tender offer for, the company's securities or the securities of an affiliate.  (˜) A USBPJ officer, director, or other employee is a director and/or officer of the company.

This material is based on data obtained from sources we deem to be reliable; it is not guaranteed as to accuracy and does not purport to be complete.  This information is not intended to be used as the primary basis of investment decisions.  Because of individual client requirements, it should not be construed as advice designed to meet the particular investment needs of any investor.  It is not a representation by us or an offer or the solicitation of an offer to sell or buy any security.  Further, a security described in this release may not be eligible for solicitation in the states in which the client resides.  U.S. Bancorp and its affiliated companies, and their respective officers or employees, or members of their families, may have a beneficial interest in the company's securities and may purchase or sell such positions in the open market or otherwise.  This report is a communication made in the United Kingdom by U.S. Bancorp Piper Jaffray to market counterparties or intermediate customers and is exclusively directed at such persons; it is not directed at private customers and any investment or services to which the communication may relate will not be available to private customers.  In the United Kingdom, no persons other than a market counterparty or an intermediate customer should read or rely on any of the information in this communication.  Securities products and services offered through U.S. Bancorp Piper Jaffray, member SIPC and NYSE, Inc., a subsidiary of U.S. Bancorp.  Additional information is available upon request.

Nondeposit investment products are not insured by the FDIC, are not deposits or other obligations of or guaranteed by U.S. Bank National Association or its affiliates, and involve investment risks, including possible loss of the principal amount invested.  Securities products and services are offered through U.S. Bancorp Piper Jaffray Inc., member SIPC and NYSE, Inc., a subsidiary of U.S. Bancorp.  (5/99-0679)

U.S. Bancorp Piper Jaffray Inc. is a member of the National Association of Securities Dealers, CRD number 665.



SOURCE  U.S. Bancorp Piper Jaffray

    -0-                             08/07/2002

/CONTACT:  Dana H. Wade, Public Relations of U.S. Bancorp Piper Jaffray, +1-415 277-1556/

/Web site:  http://www.piperjaffray.com  /


CO:  U.S. Bancorp Piper Jaffray; Proxim, Inc.; Symbol Technologies, Inc.;

Cisco Systems, Inc.; Motorola, Inc.; Intersil Corporation; Agere Systems,

Inc.; RF Micro Devices, Inc.; Texas Instruments Incorporated; Analog

Devices, Inc.; Infineon Technologies AG; Broadcom Corporation; Marvell

Technology Group Ltd.

ST:  Minnesota, Maine

-- MNW013 --
4400 08/07/2002 12:23 EDT http://www.prnewswire.com

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding U.S. Bancorp's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.

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