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Netgear's Lo: High Hopes: Page 3 of 6

PL: [For businesses with] between 100 to 150 users, we see the primary competition is from 3Com and [Hewlett-Packard]. We believe that we compete against these two by offering a little more features such as better stackability and more Gbyte ports.

CRN: What about in the wireless space?

PL: Across the whole market, we compete primarily with Linksys and D-Link. But in the business market we compete favorably with Proxim and 3Com. We haven't seen much of HP as of yet. And Cisco is kind of the high end of that market.

CRN: How is your approach to the wireless channel different than D-Link or Linksys?

PL: Our VARs need high-throughput devices that are very secure, easily managed and they want features such as Power over Ethernet and automatic throughput maximization. Those are the features that we put into our wireless access point. And we know that we cannot mix that with a retail, home-oriented product. So, unlike our competitors like D-Link and Linksys, we actually segregate the two product segments by totally different industrial design, totally different feature sets and a totally different channel for VARs. Our business wireless access point is housed in a metal cage with a long warranty [and] lots of features that are not sold in retail.