At Triangle, we have now completed several projects which were 10-20 person companies when we started. They did not have the manpower to open up an office in Tokyo, send an engineer for 6 months to Japan, or even to spend much time debating strategy with the CEO and VP's. In three of these projects we initiated strategic sales direct to end customers, while in parallel started negotiating with distributors. In all cases Japan ended up a showcase market, which, by the way, helped the companies raised capital. In one of the cases we unseated stole the NTT account of the key competitor. In another case we got the Japan opinion leader to purchase a system, and more importantly, grant an endorsement.

What are some of the advantages of Japan, especially in tough times?

1. Japan has been in a recessionary environment for a decade. Live goes on. Customers still purchase.

2. Japanese customers are loyal - hard to acquire them, hard to leave them.

3. Japan is a large market.

4. Japan is booming in broadband, mobile Internet, and information devices.

Dan

Over 40 companies will participate in this year’s Nikkei Business Publication’s Israel-Japan---Internet and E-Commerce Exhibition July 10-11 in Tokyo. In addition to these companies there will be top-tier keynote speakers from Japan and Israel. This exhibition is expected to be a great success and terrific way for Israeli companies to meet thousands of Japanese executives and decision-makers. The impressive amount of Israeli companies participating in the event indicates the relevance and importance of the Japanese Internet and mobile communications market.

For more information, please contact Amir Lewkowicz at a_lewkowicz@triangletech.com.

Exchange Rate as of March 11,2001

$1 US = 119.49 Yen

***GENERAL TECHNOLOGY NEWS***

+86 MILLION INTERNET USERS IN JAPAN BY 2005

According to IDC Japan the number of mobile Internet users will be 86.3 million in 2005.

+COCA-COLA, DOCOMO AND ITOCHU IN VENDING MACHINE TRIAL EXPERIMENT

Coca-Cola (Japan), NTT DoCoMo and Itochu have agreed to jointly start an experiment named "i-vending Project" using i-mode to enable cashless shopping for soft drinks from a vending machine.

+MOBILE PHONE USERS ALMOST 67 MILION

According to the Telecommunications Carriers Association (TCA) the number of mobile phone users in Japan surpassed 66.8 million. The number of cell phone users reached 60.93 million, and that of personal handyphone system (PHS) phone users, 5.84 million.

+ DSL USERS REACH 60,000

According to IDC Japan the number of people connected to the Internet through providers of DSL services is expected to increase to around 60,000 by the end of April 2001. DSL services have seen an impressive increase in the number of users since NTT and other companies entered the market last year.

+CONSORTIUM SETS ONLINE VIDEO TRANSMISSION STANDARD

A consortium -- including Toshiba, NEC, Oki Electric, Matsushita and NTT has developed a protocol for online transmission of video images, which is expected to become a de-facto international standard. The Japanese team managed to outperform a U.S-European consortium, including AT&T and Thomson SA, and another group of a French institution and German university.

+BROADBAND DIVIDED INTO 3 TECHNOLOGIES

According to InfoCom Research and NTT, Internet user preferences in Japan are divided roughly equally among three major types of broadband communication Users were asked what type of broadband connection they would most like to use in the future. 26.1% selected fiber-optic access, 23.5% CATV connection, 23% ADSL, 4% fixed wireless and 3.9% satellite access.

+FIBER OPTIC DEMAND ON THE RISE

Domestic demand for fiber-optic cables is expected to jump 43% from fiscal 2000 estimates to the equivalent of 12,847km of single-core cables in fiscal 2001 as telecommunications carriers and power companies accelerate their expansion of fiber-optic networks, a Japanese Electric Wire & Cable Makers' Association survey shows.

+NEW FIBER OPTIC NETWORK SERVICE PLANNED FOR TOKYO

Media KK., a communications start-up in Tokyo, will from January 2002 begin providing Internet access and high-standard Internet protocol (IP) telephone service through fiber-optic networks. The service will be limited to Tokyo's 23 wards. By using Ethernet technology, the service will allow fast and high-quality sound communication at a speed of between 10mbps and 1Gbps. The company expects to obtain approval from the government by the end of this month.

+HALF OF HOUSHOLDS TO HAVE BROADBAND BY 2005

Broadband technology is likely to expand to 40% of the Japanese households connected to the Internet by 2005, according to a forecast by Media Metrix Inc., a company that specializes in market research on Internet-usage trends. By that time, about 22 million Japanese households will be connected to the Internet, with 8.6 million gaining access through high-speed, high-volume broadband connections.

+GOV’T TO ALLOCATE WIRELESS SPECTRUM FOR INTERNET SERVICE

The Ministry of Telecommunications will grant six communications companies control over frequency bands that can be used for wireless high-speed Internet services. The 26GHz frequency band will be used for handling wireless transmission of video, music and other broadband Internet content.

+3D IMAGES ON CELL PHONES

J-Phone, Bandai Networks and HI have collaborated to develop technology to display three-dimensional images on a cellular phone. The technology, called Mascot Capsule Engine/Micro3D Edition For J-Phone, will enable cellular phone terminals to move characters depicted with the three-dimensional polygon technology on a standby screen and games developed with Java language.