FROST & SULLIVAN: INTERACTIVE KIOSK COMPONENTS SET TO MAKE HEADWAY INTO    
                        (PR Newswire; 04/19/99)                        

                             U.S. Market

 MOUNTAIN VIEW, Calif., April 19 /PRNewswire/ -- Kiosks are quickly becoming 
user-friendly solutions to everyday dilemmas.  They are convenient for end 
users and vendors alike.  They provide the end user with ease in accessing 
useful information and benefit the vendor by providing the ability to increase 
customer service and decrease labor costs.

According to Frost & Sullivan's strategic research, (www.frost.com) U.S. 
Interactive Kiosk Components Market, kiosks have advanced from being boxy 
information machines to elegant and attractive self-service stations.  Kiosks 
generated revenues totaling $213 million in 1998, which constituted a 32 
percent increase over 1997.

"Primary market drivers for interactive kiosks include their ability to offer 
information and products anytime, anywhere while simultaneously reducing labor 
costs.  The ability of kiosks to leverage a company's Internet investments into 
a strategically located public access device and the success of ATMs and self 
service gas stations have provided a market model for interactive kiosks," says 
Frost & Sullivan Analyst Generosa Litton.  "Although the interactive kiosk 
market is still in the development stage, rapid market growth is not projected 
until the year 2002 because consumers lack awareness of the benefits of 
interactive kiosks and high prices hinder market expansion and poor designs 
lead to project cancellations."

As kiosks continue to gain popularity, their components contain a growing 
market of their own.  The components market can be broken down into printers, 
enclosures, software, hardware, touchscreens and other peripheral devices.  By 
1999, printers are expected to be installed in approximately 90 percent of 
interactive kiosks.  Printer manufacturers are realizing the demand for printed 
information in kiosks and have manufactured kiosk-specific printers. As a 
result, printers are projected to experience strong growth.

A majority of kiosks now use touchscreens as well, forcing touchscreen 
manufacturers to improve clarity, reliability and durability.  Kiosk 
application software allows clients to obtain information or perform a 
transactions with the use of a touchscreen interface.  Several software market 
participants of various sizes customize software for kiosks, allowing 
variability between units.

Kiosk enclosures experienced a 21 percent revenue growth from 1997 to 1998, and 
are forecasted to continue growth into 2005.  Growth of enclosures can be 
attributed to increasing acceptance of self-service applications, outsourcing 
opportunities, and a slimmer form factor. Enclosure growth rates are 
anticipated to slow down after 2001 due to high kiosk prices, unreliability of 
some units, lack of service expertise and disregard of security issues.

Frost & Sullivan presents market engineering awards to the interactive kiosk 
industry to recognize companies that have worked hard to make a positive 
contribution to the interactive kiosk industry.  These awards are based on 
Frost & Sullivan's information technology department's research and consulting 
work in this industry.  Winners are selected from an in-depth analysis of the 
market competitors.

The 1998 Market Engineering Customer Focus Award goes to Quad Media. The 1998 
Market Engineering Product Innovation Award goes to First Wave, Inc.  The 1998 
Market Engineering Competitive Strategy Award goes to MicroTouch Factura Kiosks-
Your Kiosk Partner.  The 1998 Market Engineering Sales Strategy Award is given 
to Elo TouchSystems.  The 1998 Market Engineering Product Line Strategy Award 
goes to Magnetec Corporation.  The 1998 Market Engineering Marketing Strategy 
Award went to King Products.  The 1998 Market Engineering Entrepreneurial Award 
goes to Rocky Mountain Multimedia.  The 1998 Market Engineering Product Quality 
Award went to NCR Corporation.  The 1998 Market Engineering Customer Service 
Award went to Telpar.

Participants in this research include:  Acoustics Development Corporation, 
ATCOM/INFO, Axiohm Transaction Solutions Inc., Carroll Touch, Chamber Works 
Inc., Citizen America Corporation, Dynapro, DynaTouch Corporation, Dennis 
Interactive, EDR Technologies, Elo TouchSystems Inc., EMF Corporation, EPSON 
America Inc., Factura Kiosks Inc., First Wave Inc., Fujitsu America Inc., Gem 
City Kiosk Group, Gibco Inc., Golden Screens, Interactive Technologies Inc., 
GTECH Holdings Corp., HTS-Interactive Media Division, HSI Computer Systems, IBM 
Global Services, ICL Retail Systems, iCom Network Inc., InterAct Systems Inc., 
Intrcomm, Ithaca Peripherals, KDS, Pixel Touch, KEYTEC Inc., King Products 
Inc., Kiosk Software Inc., Kiosk Information Systems (KIS), Kyocera 
International Inc., Lexitech, Magnetec Corporation, MicroTouch Systems Inc., 
Midi Inc., MontegoNet Solutions LLC, Muze Inc., NCR Corporation, NetShift 
Software Ltd., North Communications, ObjectSoft Corporation, Oki America Inc., 
Pearlson Development, Practical Automation Inc., Quad Media, Rocky Mountain 
Multimedia Inc., Saltmine Creative Inc., Seiko Instruments USA Inc., Source 
Technologies, Star Micronics America, Inc., St. Clair Interactive 
Communications Inc., Swecoin US Inc., Tektronix Inc., Telpar Inc., TEP Systems 
Inc., TouchNet Information Systems Inc., TouchVision, Troll Touch , Westrex 
International, Winstanley Associates LLC, AG Industries (AGI), Apple Computer 
Inc., Cirque Corporation, Compaq Computer Corporation, Dell Computer 
Corporation, Diebold Inc., Hewlett-Packard Company, Instruments and Equipment 
Company, Macromedia Incorporated, MAG Innovision, Microsoft Corporation, 
Mitsubishi Electronics America Inc., Multimedia Resources Inc., NEC 
Technologies Inc., Netscape Communications Corporation, Oracle Corporation, 
Sharp Electronics Corporation, Siemens-Nixdorf, Sony Electronics Inc. and Sun 
Microsystems, Inc.

Frost & Sullivan is an international marketing, consulting training company 
that monitors the IT industry for market trends, market measurements and 
strategies.  This ongoing research is utilized to update a series of online 
research subscriptions such as the Computer Peripherals and Accessories Custom 
Subscription (www.frost.com/online) and to support industry participants with 
customized consulting needs.

Visit Frost & Sullivan's Web site at:  http://www.frost.com.