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National Survey Shows One in Five Adults Currently Have a Home Computing Network, But Few Others Say They Intend to Install One in the Future

Top Reasons for Deciding to Install a Home Network Include Being Able to Share an Internet Connection, Printers/Peripherals and

ROCHESTER, N.Y., Jan. 31 /PRNewswire/ -- The foundation of the digital home is beginning to materialize as expected by many of the leading consumer electronic firms. One in five (21%) U.S. adults report having a home computing network of two or more computers. However, at this time only an additional seven percent of all adults intend to install a home network in the future; a clear indication that more needs to be done to make home networking mainstream. It may be a hard sell as the majority (88%) of adults who do not intend to install a home network (or those who currently are not sure) report not having a need for a home network.

These are some of the results from The 2004 Technology Report on Home Networking, a study conducted by Harris Interactive(R). This study was conducted in October 2004 among a sample of 1,014 U.S. adults of whom 225 have a home computing network and 699 do not intend to install one or currently are not sure.

For those with a home network, the most common reason cited for originally deciding to install a network was to gain the ability to share an Internet connection (84%), followed by to share printers/peripherals (64%) and files (58%), to move freely around the house (42%), and to utilize one firewall (36%).

In addition, key factors that influenced the decision-making process for those who have a home network include the reliability of the products (84%), speed of data transfer (79%), compatibility/interoperability with existing components (77%), ease of set up (77%), and that it has a do it yourself option (74%).

Of the adults who do not intend to install a home network or those who are not sure, 88 percent believe they have no need for a network. Other reasons for not having a home network include the price of required hardware/software (9%), not being sure what to buy (9%), and not being sure if they can set it up themselves (8%).

Who are those without a home computer network?

People who do not intend to install a home network or are not sure they will are more likely to be:

* Women (61%) vs. men (39%); * Those aged 40-59 (47%) vs. adults aged 18-39 (34%); * Married (55%) vs. single (25%);

* Have a high school education or less (48%) vs. those with some college (30%) or those with a four-year degree (22%);

* Considered a medium Internet user, those reporting to use the Internet 8-21 hours a week (47%), vs. a light user (28%) or a heavy user (25%).

"With an estimated 24 percent of U.S. households expected to have a home network by the end of 2005, only a three percentage point increase from October 2004, home network and digital home product providers will want to address the issues that have many adults feeling as if they don't need a home network," says Milton Ellis, vice president, Harris Interactive Technology Research. "Knowing who their target market is and what motivates those who have already adopted the technology may help to break down walls and accelerate market growth penetration. Many of the consumer electronic providers' new product offerings depend on a home network as an enabling technology to deliver entertainment content to all areas of the home. If the end users cannot see the benefits of a home network, it may be a long road ahead before we see acceptance of the digital home by the masses."

TABLE 1

HOME NETWORKS

"Do you have a home network? By 'home network,' we mean a group of two or more

computer systems linked together." "Do you intend to install a network in your home in the future?" Base: All adults (n=1,014) % Yes 21 Intend to have 7 Do not intend to have/not sure 72 TABLE 2 REASONS FOR NOT HAVING HOME NETWORK "Why don't you currently have a home network?"

Base: Adults who do not intend to have a home network or are not sure (n=699)

% No need 88 Price of required hardware/software 9 Not sure what to purchase 9 I don't think I can set it up myself 8 Incompatibility/inoperability with existing or other computer/networking products 4 It is not easy to purchase required hardware/software 2 Inadequate after-sales support 1 Not sure if home network poses health risks * Other 3 Note: Multiple-response question. * Less than 0.5%. TABLE 3 MOTIVATORS FOR THOSE WITH A HOME NETWORK

"Which of the following were reasons you originally decided to install a home

computer network?" Base: Adults who have a home network (n=225) % To share an Internet connection 84 To share printers/peripherals 64 To share files (data, music, videos, etc.) 58 So I can move freely around the house 42 To utilize one firewall 36 To connect Internet-enabled devices 29 To facilitate computer backups 27 To play multi-player games with others in the same location 25 To get rid of unsightly/dangerous wires 21 To operate a home-based business 18 To telecommute using a VPN (Virtual Private Network) to securely access a corporate environment 13 To host a Web server 10 To use the Internet to make phone calls (VoIP) 8 To control home systems (security, sprinklers, kitchen devices, etc.) 6 To videoconference 3 Other 4 Note: Multiple-response question. TABLE 4 DECISION MAKING PROCESS FACTORS "How important to you were each of the following factors in your decision- making process for your home network?" Percentages represent combined "4" and "5" responses from a scale of 1-5 (5 = "very important") Base: Adults who have a home network (n=225) % Reliability of the product(s) 84 Speed of the data transfer between the devices on home network 79 Compatibility/Interoperability with existing or other computer/networking components 77 Ease of set up 77 Has a "do-it-yourself" option 74 Price of the router 73 Ease of purchase of required hardware/software 70 Price of required hardware/software 69 Brand reputation of router 69 Adequate after-sales support 45 Recommendation by peers 44 Professional maintenance/service available upon request 38 Comfort that home network offers no health risks 32 Professional installation 16 Ability to lease, versus buy, required hardware/software 11 TABLE 5 DEMOGRAPHICS

Base: Adults who do not intend to have a home computer network or are not sure (n=699)

% Gender Male 39 Female 61 Age 18-39 34 40-59 47 Marital Status Single 25 Married 55 Education High school or less 48 Some college 30 College graduate (4 year degree) or more 22 Internet Usage Light (0-7 hours) 28 Medium (8-21 hours) 47 Heavy (22 or more hours) 25 Methodology

Harris Interactive(R) conducted the online study in October 2004 among a nationwide sample of 1,014 U.S. adults (aged 18 years and over), of whom 225 have a home network and 699 do not intend to have one or currently are not sure. Figures for age by gender, race/ethnicity, education, region, household income and sexual orientation were weighted to reflect the total U.S. adult population. Propensity score weighting was used to adjust for respondents' propensity to be online.

In theory, with a probability sample of this size, one can say with 95 percent certainty that the results of the overall sample have a sampling error of plus or minus 3 percentage points. Sampling error for results from adults who do not intend to have a home network or currently are not sure is plus or minus 4 percentage points; and, sampling error is plus or minus 6 percentage points for responses from adults with a home network. Unfortunately, there are several other possible sources of error in all polls or surveys that are probably more serious than theoretical calculations of sampling error. They include refusals to be interviewed (nonresponse), question wording and question order, and weighting. It is impossible to quantify the errors that may result from these factors. This online sample was not a probability sample.

These statements conform to the principles of disclosure of the National Council on Public Polls.

About Harris Interactive Technology Research

The Harris Interactive Technology Research group doesn't just monitor and measure the industry. It interacts with the thought leaders who drive technology, telecom and e-business everyday and provides insights from a variety of vertical perspectives. Using the group's unique knowledge, experience, and expertise in both the telecommunications and information technology sectors, Harris Interactive asks the right questions, confirms business issues, designs and implements studies to provide clients with actionable results.

A copy of The 2004 Technology Report on Home Networking can be obtained upon request.

About Harris Interactive(R)

Harris Interactive Inc. (http://www.harrisinteractive.com/), the 15th largest and fastest-growing market research firm in the world, is a Rochester, N.Y.-based global research company that blends premier strategic consulting with innovative and efficient methods of investigation, analysis and application. Known for The Harris Poll(R) and for pioneering Internet-based research methods, Harris Interactive conducts proprietary and public research to help its clients achieve clear, material and enduring results.

Harris Interactive combines its intellectual capital, databases and technology to advance market leadership through U.S. offices and wholly owned subsidiaries: London-based HI Europe (http://www.hieurope.com/), Paris-based Novatris (http://www.novatris.com/), Tokyo-based Harris Interactive Japan, through newly acquired WirthlinWorldwide (http://www.wirthlinworldwide.com/), a Reston, Virginia- based research and consultancy firm ranked 25th largest in the world, and through an independent global network of affiliate market research companies. EOE M/F/D/V.

To become a member of the Harris Poll Online(SM) and be invited to participate in future online surveys, visit http://www.harrispollonline.com/.

Press Contacts: Nancy Wong Harris Interactive 585-214-7316 Kelly Gullo Harris Interactive 585-214-7172

Harris Interactive Inc.

CONTACT: Nancy Wong, +1-585-214-7316, or Kelly Gullo, +1-585-214-7172,
both of Harris Interactive Inc.

Web site: http://www.harrisinteractive.com/

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