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  Conferences and Awards  Growth and Opportunity in Embedded Markets are Themes of VITA Bus and Board Conference
Conferences and Awards

Growth and Opportunity in Embedded Markets are Themes of VITA Bus and Board Conference

VITAVITA—January 31, 20050
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Scottsdale, Arizona. — January 31, 2005 — Continued growth in embedded markets supported by the VME standard was the good news at the recent Bus&Board Conference, hosted by VITA (VMEbus International Trade Association). Jeff Berson, executive

director at CIBC World Markets, noted that the broadly diversified character of embedded markets boosted the sector to outperform the overall market in 2004. Pointing to company exhibits at the conference, Berson noted that the stability of embedded markets not only ensured the sector’s growth but opened the door for mergers and acquisitions as companies looked to solidify their competitive position.

Echoing the growth theme, Jim Feldhan, president and CEO of Semico Research,

acknowledged that so-called bread-and-butter markets, such as cell phones and

computers will continue to grow, but he emphasized that market growth would be driven by embedded products for personal media devices and automotive electronics.

Eric Mantion, analyst with InStat, cautioned attendees to ensure their new products had value in their target markets. “The concept of (new) technology for technology’s sake is over,” Mantion said. “Technology thrives only when it reduces the cost of the way things are done.”

VITA member representatives cited expanding opportunities in military and commercial off-the-shelf (COTS) markets bolstered by the Administration’s focus on security,

industrial automation, healthcare equipment, communications, automotive electronics and other markets that rely on open-system architectures and interconnect technologies afforded by VME, CompactPCI, PCI, PC/104, fabrics, motherboards and mezzanine cards for embedded applications.

According to Electronic Trend Publications, a San Jose, California-based market research firm, the 2003 worldwide market for embedded markets was approximately $3.2 billion,

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when combining applications in the communications, industrial, medical,

military/aerospace and other sectors. Of that number, VMEbus technologies accounted for 26% of the total, with continued growth in all areas.

Jerry Gipper, VITA marketing spokesman, said, “VME-based products continue to demonstrate their durability, with broad adoption of the VME standard across all markets.

Between 2003 and 2008, market adoption of the VMEbus technologies will grow at over 6%, with new enhancements to the standards adding over 100% CAGR in the same time frame, according to Electronic Trend Publications.”

“In embedded applications, VME is the most used open standard in the world, with no other standard coming close,” stated Ray Alderman, executive director of VITA. “Open standards bring sanity to an otherwise chaotic array of product offerings. While companies with proprietary offerings must constantly grapple with obsolescence, the risks associated with new product development, and the high costs of going it alone, open standards provide a strategic roadmap that allows adopters to improve and innovate their product offerings in a seamless methodology and with greatly reduced risk.”

Alderman continued, “The Bus&Board Conference provides a place to build alliances among vendors committed to open standards for embedded products. In this environment, companies can find common ground and build a market environment that is stronger than any they can create on their own.”

About the Bus&Board (&Fabrics) Conference (www.busandboard.com)

The Bus&Board Conference examines business and technical issues related to the embedded products manufactured for the government, industrial, medical, communications and other markets. The agenda is focused on interconnect technologies including VMEbus, CompactPCI, PCI, PC/104, fabrics, motherboards, and mezzanine

cards for embedded applications.

About VITA

VITA, the VMEbus International Trade Association, is an incorporated, non-profit organization of vendors and users having a common market interest. Founded in 1984, VITA believes in and champions open system architectures as opposed to proprietary system architectures. VITA’s activities are international in scope. The functions

performed by VITA are technical, promotional and user-related and are aimed at increasing the total market size, providing vendors with additional market exposure and

providing users with timely technical information. For information about VITA

membership, or to find out how to obtain VITA specifications, visit the VITA website at www.vita.com or call VITA headquarters at 1 480 837 7486.

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