At our core, we are an engineering driven company with a commitment to technology excellence and quality production, which has allowed us to firmly establish ourselves as one of the industry's leading designers, developers and manufacturers of high performance connectivity solutions worldwide.

Last year, we began delivering advanced Internet connectivity access technology extending our product range and thrusting the Company into successfully entering new emerging, untapped markets that are targeted at mass-market consumers. We also developed key relationships with the channel structures that sell and provision those large untapped mass markets.

D-Link continues its high-growth pace, while posting globally consolidated revenue for the past twelve months of US$445 million, a 13 percent increase over the US$393 million recorded in fiscal 1999.

Income after tax rose to $26.6 million, up from $21.8 million last year, an increase of 22 percent. Net income per share rose 13 percent to US$0.072, compared with US$0.062 recorded last year.

Our commitment to world-class quality design, development, and manufacturing remains the hallmark of the Company. Our products continue to be recognized and embraced for technology excellence by leading industry influencers, press, and customers.

Development on our core high-speed network products has allowed the Company to gain a serious market position in the full spectrum of connectivity market segments. In 2000, the introduction of Ethernet Gigabit adapters and switches, and Ethernet multi-layer router switches lead the way for a wide range of fundamentally solid products that secured the infrastructure of businesses, governments, and home computing throughout the world.

While continuing development on the wide range of innovative high-speed communications technologies, Research & Development has been designing extremely sophisticated communications products that will drive us

deep into the new Century with cutting-edge Internet connectivity and high-bandwidth broadband Digital Subscriber Lines (DSL) & cable modems, residential gateways, routers, connectivity access, IP telephony solutions and wireless networking products at a time in history when mass access is being made available to the individual worldwide.

The Company will continue to aggressively invest in new technologies to keep D-Link on the cutting-edge and in the forefront of our industry. As the new Century begins, we are now well positioned for growth. The new D-Link connectivity access products enable users to communicate at faster speeds, which creates an opportunity to allow users to embrace more information like streaming video, high resolution images and graphic animations, voice and music.

Throughout the year, we expanded our relationships with both brick-and-mortar and online retail channels that allowed us to get our small business and digital home products in front of the consumer market. In 2001, we will continue to deepen our relationships, while adding more retail partnerships. We have begun developing new selling channels with Internet Service Providers (ISP's), cable companies and telephone companies who have direct access to all consumers because they deliver the infrastructure directly to the mass markets.

The Company has grown stronger with expanded factories and employees, with more than one million square feet of manufacturing space and R&D facilities in four countries with more than 3,000 people in 47 locations serving over 100 countries around the world.

In February 2000, the Company also entered into a significant joint business venture with Legend Holding of China, named the Legend Networks Limited. Now renamed Digital China Networks Limited, it is a leading networking company in China, which is one of the fastest growing markets. It represents an important strategic move to establish a strong company position by exclusively driving D-Link branded products.

We continue to be engineering driven, with a talented team of capable and motivated people, and we look forward with great expectations to the opportunities that lay ahead. We appreciate our customer relationships, and thank you for your participation and continued interest and support.

It has been another successful year for the Company. Our business is healthy and strong. We appreciate your support and loyalty. I am confident that, with your enthusiastic participation in our progress, we will achieve great success as we take on the new challenges of building networks for people in the 21st Century.

Ken Kao
Chairman
D-Link Corporation