Networks
D-Link engineers are continually developing next generation solutions and reshaping future technology innovation. Whether it is pushing the envelope on an emerging technology, designing pilot samples of alternative chip solutions, developing the next evolution of existing technical capabilities, or costing down mainstream technical solutions, D-Link engineers are hard at work scientifically pushing technology to its outermost limits and capabilities.

Networking is a core technology for the future of data communications. As the most scalable, flexible and cost-effective networking standard, Ethernet is well established as the dominant networking technology. In fact, nearly all traffic on the Internet originates or ends with an Ethernet connection.

With strengths in chip design, technology development, and high-volume manufacturing, D-Link is an established leader in Ethernet networking technology. The Company has repeatedly delivered best-of-class products and powerful end-to-end Ethernet networking solutions.

This Ethernet segment of the market is fundamentally sound and we are extremely well positioned to take advantage of the changes and technology migration that will occur in the coming years.

10/100 Fast Ethernet
First proposed in 1992, Fast Ethernet has become the high-speed technology for today's LANs and corporate desktop users. This IEEE standards-based technology has been so successful because it is easy to use and readily upgradeable. Fast Ethernet is also highly reliable and has repeatedly proven it can be trusted with mission-critical applications.

D-Link Fast Ethernet products are a dominant force in home and business environments alike; delivering increased network performance, increased network scalability, and decreased costs over time. Working closely with Internet Service Providers allows the Company to deliver Ethernet NICs directly into consumers' PCs at the time of broadband installation. In addition, D-Link has worked closely with Value Added Resellers since the Company's inception and has a strong hold on network infrastructure in the business environments.

Gigabit Ethernet
Just as Fast Ethernet provided a low-cost incremental migration from 10Mbps Ethernet, Gigabit Ethernet provides a low-cost incremental migration from 10/100Mbps Fast Ethernet.

As a leading supplier of Ethernet technology, D-Link provides a broad range of standards-based, high performance Gigabit Ethernet solutions designed to lower enterprise IT costs and simplify the transition. In general, upgrading to Gigabit Ethernet over copper is ideal even when budgets are tight; it will increase performance and breathe new life into older networks that now have extended needs by building on a company's current investment in cabling.

Initially focusing on uplinks to the backbone, switch-to-switch links, and switch-to-server connections, shrinking price deltas and increased use of bandwidth intensive applications are ramping the growth of desktop Gigabit connections and continuing a familiar path as businesses upgrade to 1000Mbps from 100Mbps.

10 Gigabit Ethernet
The migration to Gigabit Ethernet on the desktop is in turn helping to drive the need for 10 Gigabit Ethernet in servers and enterprise backbones. Currently, D-Link is focusing on 10 Gigabit Ethernet products that provide local backbone interconnections between large-capacity switches. As the demand for bandwidth increases, D-Link will be ready to deliver solutions that will allow 10 Gigabit Ethernet to be deployed throughout the entire network and will include server farm, backbone and campus wide connectivity.

10 Gigabit Ethernet operates over optical fiber lines, while meeting several key requirements for high-speed networks, including flexibility, lower cost of ownership, and interoperability with existing Ethernet networks. Ideal for building Metropolitan Area Networks, this emerging technology will allow the connection of geographically dispersed LANs between campuses or points of presence.

Wireless
Expanding on D-Link's core competency of Ethernet networking, the Company began developing high-rate wireless Ethernet technology. Ultimately, the company introduced products in 2000 as the Institute of Electrical and Electronic Engineers (IEEE) agreed upon a high rate standard, which was initially named the IEEE 802.11HR (High Rate).

Today, wireless networking has emerged as a mainstream set of technologies and is growing in popularity among resellers and consumers. This is due in large part to its scalability and seamless interoperability with Ethernet - the most widely used networking technology.

D-Link was the first to recognize the huge potential for wireless networking in the digital home and the small to medium business markets. That is why the Company was first to deliver a SOHO IEEE 802.11b 11Mbps* wireless network to the consumer market. Since then D-LinkAir has taken the market by storm, driving this technology to an affordable level.

Digital Home
D-LinkAir wireless offers a wide range of connectivity solutions for the home with multiple interface technologies such as PCI, USB, PC Card and Ethernet. Strict compliance to the IEEE 802.11b networking standard within the 2.4GHz frequency range for wireless connectivity, means that the D-Link wireless products are very compatible and interoperable in a multi-vendor environment that is standard compliant.

D-Link is deep into the development of next generation wireless solutions. The Company is pushing to achieve even higher rated bandwidths in the 2.4GHz spectrum for greater performance and to create more integrated solutions like the D-LinkAir Wireless Internet Camera for extended functionality.

Business and Enterprise
In order to better address the enterprise and departmental

connectivity needs, D-Link introduced a high performance 54Mbps** bandwidth standards-based 5GHz wireless line of products called D-Link AirPro.

The D-Link AirPro series is fully standard compliant with the IEEE 802.11a specification for high-speed wireless networking. These powerful new D-Link AirPro products offer high-speed data rates at up to 54Mbps** in standard mode, and 72Mbps** in "Turbo" mode.

Typical IT professionals at the enterprise and departmental level deploy wireless technology to extend and support users. This means that most high-speed wireless products are worked into a core multi-technology network with an Ethernet base. The D-Link wireless products are completely interoperable with Ethernet.

Bluetooth
D-Link has entered the 2.4GHz Bluetooth networking arena as well, with its DWB-120M adapter. Bluetooth technology provides a simple wireless connectivity experience with seamless Wireless Personal Area Network connectivity.

Delivering zero-configuration wireless capabilities, users can choose to connect up to seven Bluetooth devices together simultaneously in peer to peer or ad hoc mode to create a piconet. As the ideal solution for short-range wireless data communications, Bluetooth allows users to share data on their PC with other Bluetooth enabled computers, PDAs, printers, cellular phones, digital cameras, and other electronic devices.

Broadband
The emergence of the Internet in daily life and its ability to deliver a wide range of services, entertainment, information and e-mail for business and home users have created a need for faster and easier access.

The demand for faster access and instant data is driving large-scale technology manufacturers like D-Link to provide better, faster, and more affordable Digital Home and business solutions to these markets. The digital home market consists of individuals and families who want easy and low-cost connections that are secure at home and on the move.

As the Internet is the driving force behind user demand for connectivity products, broadband Internet access becomes the key. Service providers such as Telephone Companies, Internet Service Providers and Cable companies offer a wide range of broadband connections to a wide range of subscribers, home users, and businesses over various access infrastructures. Connectivity manufacturers like D-Link, design, engineer and manufacture the technology that provides the physical access.

Today, D-Link high-speed modem products find their way to many consumers in the home and business through network service providers.

The Company also sells broadband and Internet connectivity products through a multi-channel structure that includes consumer retail, e-commerce, catalog and dealers. This vast channeling system provides access to sharing and security devices designed to complement the broadband connection and directly address the needs and concerns of broadband customers. These products, which include routers, residential gateways, firewalls and integrated broadband access devices that combine firewall, routing, access points, switching and even printer sharing functionality into one convenient value-added product, continually set new standards for price and performance.

With a close watch on the future, D-Link is deep into the development of emerging technologies. In 2001, D-Link was one of the first to deliver a Universal Plug-n-Play enabled residential gateway and an affordable Virtual Private Networking router solution. The Company works closely with service providers and existing distribution channels to bring its broadband products to market.

IP Telephony
Internet Protocol Telephony is an important emerging technology that provides significant cost advantages and affordable solutions. The Voice over Internet Protocol (VoIP) carries voice signals in the IP packet format, which allows the packet to be transmitted digitally over an IP network. This VoIP technology links traditional telephony networks to IP networks.

D-Link currently manufactures and sells voice communications products that include a range of VoIP gateways and telephone solutions - all of which have their foundation in Ethernet, yet operate for users in the same manner as the premises distribution carrier telephone system that is deployed in homes and business today. With this series of IP telephony devices that provide connection paths between the plain old telephone service (POTS) lines and the Internet Service Provider (ISP) via the global Internet network, D-Link is rapidly becoming a key supplier of end-user equipment for Telecom companies and ISPs offering worldwide IP-based services.