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TRENDnet Records 24% YOY Revenue Growth for Fiscal 2005

TRENDnet Announces 5th Consecutive Year of Double-Digit Growth and Plan to Expand Headquarters in November 2006

TRENDnet, one of the largest privately held networking manufacturers in the world, concluded its fiscal year 2005 ending May 31st, 2006, with year over year revenue growth of 24%. As a result, TRENDnet has tripled its overall revenue in the past three years. The company's momentum has been fueled through the development of innovative one-of-a-kind solutions, country and channel expansion, and through a renewed focus on marketing.

New Products

Over the past year, the company has launched over 60 new products in high growth categories such as Wireless LAN, VoIP, IP Cameras and Gigabit Switching. Several of the landmark products that have driven volume and created market attention have been focused on enabling mobile connectivity for Wi-Fi users. Super G wireless with MIMO smart antenna technology, Wi-Fi HotSpot Detectors, Day and Night IP Cameras and high port-count Gigabit switches have not only helped draw a number of editorial excellence awards, but the right product mix has helped drive top-line revenue and profitability.

Geography Expansion

TRENDnet continued its international expansion by adding 5 new countries to its global partner network over fiscal year 2005. Expansion into emerging markets requires close cooperation with in-country distributors and reseller partners. While adding these new distribution partners, TRENDnet utilizes the partner's intimate understanding of the local market to adapt to unique business constraints and identify opportunities. By avoiding a one-size-fits-all strategy, TRENDnet has continued to create flexible partnerships that give partners ownership and incentive to build volume and profitability. Combined with TRENDnet's loyal commitment to its partners and focus on channel integrity, the company now has distribution in over 113 countries worldwide.

Channel Expansion

Over the past year, the company has increased penetration into the consumer, VAR and distribution channels. In North America, major retailers including FutureShop, PCClub and J&R were added to its list of national and regional partners, while ecommerce partners, such as TigerDirect, NewEgg, Buy.com and Compusa.com realized stronger than expected revenue growth. TRENDnet also added one of the fastest growing national distributors, ASI, to its list of North American distributors. The growth extended to Europe as well, where the company has increased market share in each of the key leading markets. New additions to the consumer product line have helped capture more shelf space in premier retailers such as Carrefour, Wal-Mart and MediaMrkt, while PoE, Gigabit and Fiber products have attracted new VAR partners as well. In Asia and Latin America, new partnerships were formed, adding revenue through ongoing and one-time government and commercial projects.

Marketing Initiative

Starting in October of 2005, the company set into motion a series of marketing changes intended to align the company under a single image and increase communications with its partner network. In November, a new company logo was launched with TRENDnet as the company name and trademark. Timed with the logo change, the company refreshed the brand image across newly designed product packaging and other print and interactive advertising media. A renewed focus on PR and print advertising has helped increase editorial coverage and brand awareness to help drive customers back to channel partners. Also, to help leverage the company's worldwide customer base and deliver added value, TRENDnet signed several promotional deals with leading software companies, including McAfee, HP and Pure Networks.

"Overall, the past year's revenue and profitability was on target and marks the 5th year of double digit growth for the company," said Pei Huang, President of TRENDnet. "We feel we have strong momentum in each of the leading markets around the world and expect more of the same as we enter into our fiscal year 2006."

To accommodate the expected growth over the next 5 years, TRENDnet will be moving its headquarters to a new 90,000 Sq. Ft. facility located in Torrance, CA. The building will triple the current available office and warehouse space for the company and stands as a sign of the optimism in the company's projected future.

About TRENDnet

Headquartered in Torrance, California, with branches in Germany, Mexico, Brazil, Columbia and Taiwan, TRENDnet is a global supplier of TRENDnet products to business partners in over 110 countries worldwide. TRENDnet is a dynamic organization responsive to the diverse business climates around the world. This focus has established TRENDnet as a global networking brand, recognized for high quality, low prices, exceptional performance and great service. For more information visit www.trendnet.com or call +1 (310) 891-1100.