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``Many manufacturers have jumped on the DVD bandwagon, which resulted in the price declines that have driven sales growth,'' said Michelle Abraham, senior analyst with In-Stat. ``In 2000, players will reach the sub-$150 price level which will contribute to continued growth.'' Abraham added that DVD-Audio will also help propel DVD player sales due to its multichannel sound capability.

The DVD drive market is still not meeting original expectations. CD-ROM drives will continue to outship DVD-ROM drives until 2002. The popularity of CD-RW drives is having an impact as PC OEMs choose between incorporating a CD-RW or DVD-ROM drive into their PC models. ``Rather than make that choice, PC OEMs are eager for combination CD-RW/DVD-ROM drives,'' said Abraham.

In-Stat's research also found:

• The high prices, format wars, and copy protection issues will keep DVD-Video recorders out of the mainstream for several years.
• Price declines, the main reason for the spectacular rise in DVD player shipments, will stall revenue growth by 2003 at close to $5 billion.
• Once combination drives reach $100, they will account for 25% of the total CD/DVD drive market.
• There will finally be a significant decline in CD-ROM drive shipments in 2000.

The reports, DVD Markets and Opportunities in the Living Room, No. MM9911ST, and CD Still Ahead of DVD in the PC, No. MM9912MI, provide unit and revenue forecasts and discuss DVD technology and manufacturers. The DVD Markets report also contains DVD semiconductor component price and revenue forecasts.

To purchase the report or for more information about the service, please call Matt Woods at 617/630-2139; mwoods@cahners.com or visit http://www.instat.com/catalog/zd/dvd.htm to purchase online. The prices of the reports are $2,995 and $2,495, respectively.

Cahners In-Stat Group (http://www.cahnersinstat.com) covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.

Contact:

     Cahners In-Stat Group
     Michelle Abraham, 480/483-4445
       email: mabraham@instat.com
     Christina Hecht, 480/483-4443
       email: checht@instat.com
       www.instat.com