China Telecom Expands Coverage of CN2 Network; Cisco Routers Deployed to Enhance Network Potential and Business Opportunities

BEIJING--()--July 6, 2006--Cisco Systems(R) (NASDAQ:CSCO) today announced that China Telecom is expanding its business network, CN2, over the Cisco(R) Internet Protocol Next-Generation Network (IP NGN) architecture. The deployment of Cisco(R) 12416 Routers will broaden the network coverage of CN2 and increase its capacity, redundancy and performance. With this deployment, Cisco equipment is being used for the vast majority of the CN2 project.

Nearly 400 Cisco 12416 Routers, including some already deployed in certain key provinces, will be installed during the CN2 provider edge expansion, marking another significant breakthrough since the adoption of the Cisco IP NGN. The deployment includes products for CN2's backbone network in 2005 as well as CN2's international networking projects in Central America, Europe and Asia in March 2006. China Telecom cited the outstanding performance of Cisco's networking solutions during the earlier phases of CN2 construction as the leading factor in its choice of Cisco as the sole equipment provider.

Launched in 2004, the China Telecom CN2 networking project has resulted in a sophisticated commercial network that meets the requirements of quality, security and reliability in voice communication, data storage, e-commerce, real-time trading and interactive video for the customers from finance, trade, energy, government, and telecommunications sectors. As part of China Telecom's strategy to become one of the world's leading service providers in the next five to 10 years, the establishment of CN2 is also one of the milestone projects for the company in its transformation into a comprehensive information service provider.

Since the construction of CN2, China Telecom has offered quality-of-service (QoS) capabilities, high-quality commercial customer access, VNET systems (ChinaVnet, Hulianxingkong) and managed IP services. The expanded CN2 will also be able to support IPv6 and third-generation communication applications.

Many of the CN2 businesses have high QoS standards. For example, the standard of voice and financial services in terms of latency, packet loss and reliability is far higher than that of the traditional data service. The expanded network provides for a steady development of the value-added services, service unification throughout the network, and rapid service creation. In addition, every city now has redundancy backup capability with 99.99 percent network reliability, fully demonstrating China Telecom's commitment to building a dedicated commercial network. With their advanced technology and capability to offer value-added services, the Cisco 12416 Routers can significantly increase network availability.

CN2 currently covers nearly 200 cities in mainland China with points of presence in London, Frankfurt, Hong Kong, Singapore, Los Angeles, New York, Washington and San Jose, Calif.

"Through the earlier phase of CN2 construction, Cisco has won the recognition and trust of China Telecom, leading to its selection as the exclusive solution provider for the 2006 expansion. Cisco will continue to offer its industry-leading technologies to fully support the future advancement of CN2, aiding China Telecom to make CN2 a leading network platform throughout China and worldwide, and to generate business success while making the transition to the IP Next-Generation Network," said Mr. Hanh Tu, vice president, Cisco Systems China.

About China Telecom

China Telecom is the country's largest telecommunications operator with businesses covering fixed lines and various value-added Internet services. During 2001 alone, China Telecom added 35 million fixed-line subscribers, about 50 percent of the world's subscriber growth for the year, and increased its total subscriber base to 179 million, 99 percent of China's total. At present, China Telecom's national Internet network, ChinaNet, serves approximately 80 percent of the national total of all Internet users.

About Cisco Systems

Cisco Systems, Inc. (NASDAQ:CSCO) is the worldwide leader in networking for the Internet. Information about Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com.

Cisco, Cisco Systems, and the Cisco Systems logo are registered trademarks or trademarks of Cisco Systems, Inc. and/or its affiliates in the United States and certain other countries. All other trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.

Contacts

Cisco Systems, Inc.
Terry Alberstein, (61) 3 9659-4263 (Press)
talberst@cisco.com
Shang Rong, (8610) 6526-7777 ext. 5017 (Press)
rshang@cisco.com
John Noh, 408-853-8445 (Press)
jnoh@cisco.com
Ken Bond, 408-526-6001 (Investor Relations)
Kbond@cisco.com

Contacts

Cisco Systems, Inc.
Terry Alberstein, (61) 3 9659-4263 (Press)
talberst@cisco.com
Shang Rong, (8610) 6526-7777 ext. 5017 (Press)
rshang@cisco.com
John Noh, 408-853-8445 (Press)
jnoh@cisco.com
Ken Bond, 408-526-6001 (Investor Relations)
Kbond@cisco.com