Market analysts Datamonitor (www.datamonitor.com) said many companies wereseeking to boost their internal electronic networks to exploit the potential of Internet commerce.

``Intranets are the first step on the E-business pathway. Extranet development between companies will blossom from the internal intranet, as companies seek to improve operational and transactional efficiency,'' Datamonitor said.

The report - ``European Intranet Services: building the E-business pathway'' - said the German intranet market would be worth over $1 billion by 2002 compared with Britain's at $800 million.

France will have the strongest growth, reaching $720 million by 2002.``Companies in the UK have been the most enthusiastic European developers of Internet technologies,'' said Datamonitor analyst DanielBowerman.