SAN JOSE, Calif., July 15, 2002 - The U.S. printer industry is going through a transition as inkjet printer shipments are on the decline in 2002, while all-in-one (AIO) multifunction product shipments are on the rise, according to Dataquest Inc., a unit of Gartner, Inc. (NSYSE: IT and ITB).

Gartner Dataquest said U.S. inkjet printer shipments decreased 5.8 percent in the first quarter of 2002, while AIO multifunction product shipments increased 98 percent.

Total inkjet printer shipments reached 4.1 million units in the first quarter of 2002, while AIO (both sheet-fed and flatbed multifunction products) shipments totaled 1.3 million units.

"First-quarter data indicate that consumers recognize the advantages of an AIO on a broader scale and are buying accordingly. AIO products are no longer the expensive conglomeration of mediocre printer, fax and copy functions," said David Haueter, senior analyst for Gartner Dataquest's Digital Document and Imaging group. "The newest models clearly offer something much greater than the sum of their parts. The future looks bright as AIO vendors improve their products, broaden product lines and cut prices."

"Manufacturers must continue to shrink the size of their AIOs , improve the software and photo printing capabilities," said Andrew Johnson, vice president for Gartner Dataquest's Digital Document and Imaging group. "Vendors that are in the printer market but noticeably absent in AIOs are missing the boat."

Driven by the success of the AIO segment, the combination of single-function inkjet printers and AIO multifunction product shipments increased 8 percent in the first quarter.

The growth rate for AIO units are outperforming printer, fax and copier segments by a wide margin. With 1.3 million AIO units sold in the first quarter of 2002, sales are outpacing Gartner Dataquest's forecast of 4.5 million units for 2002. If this growth rate continues in the second quarter of 2002, Gartner Dataquest analysts said sales could reach approximately 5 million units for the year.

More information is available in the Gartner Dataquest report "U.S. Inkjet Printers Slow as All-In-Ones Grow in First Quarter 2002." This report examines the impact all-in-one multifunction shipments have had printer sales. This report can be purchased on Gartner's Web site at www.gartner.com. For information on how to subscribe to Gartner Dataquest programs, please call 408-468-8000.

Gartner Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software and services sectors of the global information technology industry.

Gartner, Inc. is a research and advisory firm that helps more than 11,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut, and consists of 4,300 associates, including 1,200 research analysts and consultants in more than 90 locations worldwide. The company achieved fiscal 2001 revenue of $952 million. For more information, visit www.gartner.com.