Dallas, Texas August 12, 2003 -- While the addition of new broadband households slowed in the second quarter of 2003, research from Parks Associates suggests increasing dissatisfaction with dial-up is likely to boost broadband adoption in the coming months. Data gathered from Electronic Living @ Home, Parks Associates' latest primary research initiative, identify this decline with a simultaneous increase in consumers' likelihood to upgrade, two trends which could create a short-term spike in demand for broadband service. (See Figure 1 attached)

"When combined, these two factors suggest favorable demand for broadband in the next few quarters," said Michael Greeson, Vice President and Principal Analyst for Parks Associates. "Although little has changed in the substance and quality of narrowband service, dial-up subscribers are increasingly judging the quality of their connection based on the perception of what broadband has to offer."

Parks Associates' 2003 survey reveals that only 11% of narrowband subscribers are "extremely satisfied" (ranking the service "7" on a seven-point scale), compared with 30% of narrowband subscribers in 2001. Moreover, while only one-third of narrowband subscribers were likely to upgrade to broadband service in 2001, almost one-half of current narrowband subscribers are similarly inclined.

Parks Associates' research suggests that, among the many reasons why people switch to broadband, speed of service inspires two-thirds of such upgrades "Despite efforts to emphasize unique content, speed of service remains the primary driver," Greeson said. "Even if Internet usage is confined to e-mail and the occasional downloaded video or audio file, broadband does it faster than narrowband."

Electronic Living @ Home is Parks Associates' most recent primary consumer research project and features data from two separate consumer surveys: the first, a telephone survey of 1,000 U.S. households fielded in March 2003; the second, an Internet survey of 1,300 U.S. Internet households fielded in April 2003. These surveys address all topics within the connected-home space, from personal computing devices and consumer electronics ownership, to Internet connectivity and interest in next-generation broadband-enabled services.

For additional information about Parks Associates' Electronic Living @ Home, please contact sales@parksassociates.com or call 972-490-1113.

About Parks Associates: Parks Associates is a market research and consulting firm focused on all product and service segments that are "digital" or provide connectivity within the home. The company's expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.

Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, multiclient studies, consumer research, workshops, and custom-tailored client solutions. Parks Associates also hosts two executive seminars, both part of the Fall Focus series, and co-hosts CONNECTIONS(TM) (in partnership with the Consumer Electronics Association) each year. http://www.parksassociates.com