ADC Telecommunications and Cisco Systems Team to Provide Residential IP Telephony for Cable Networks.

MINNEAPOLIS--(BUSINESS WIRE)--Nov. 30, 1998--

New World Voice-over-IP Telephony Made Available Via 'Lifeline' Solutions

ADC Telecommunications, Inc. (NASDAQ: ADCT; www.adc.com) and Cisco Systems, Inc. today announced an alliance to develop cable-based, Internet Protocol (IP) telephony products.

Under the alliance, ADC will license Cisco NetWorks Internet technologies to provide high-speed Internet Protocol (IP)-based communication functionality for ADC's next-generation Homeworx(TM) product line. Using Cisco NetWorks software, ADC will develop a range of Data-over-Cable Service Interface Specification (DOCSIS)/ International Telecommunications Union (ITU) J.112-compliant, external network interface units with network powering options to provide lifeline telephony-over-IP and advanced data services operating on modern hybrid fiber/coax (HFC) cable systems. In addition, Cisco will develop extensions to its family of Universal Broadband Routers (uBR) using ADC's technology to support lifeline IP telephony. As part of the Cisco NetWorks program, Cisco will also support ADC's development efforts with engineering support, certification, Cisco NetWorks branding and co-marketing activities.

"This alliance will enable ADC to provide IP telephony products to our customers who want to offer full-featured lifeline telephony over coax that gives end-users the service that they have come to expect," said Vivek Ragavan, president of ADC's Residential Broadband Group. "We welcome the opportunity to combine these technologies -- ADC's lifeline telephony and Cisco's voice-over-IP developments -- to offer the advantages of IP telephony without compromising the features of lifeline service."

"This alliance with ADC represents the latest step in Cisco's commitment to be the leader in the IP cable telephony arena," said Paul Bosco, general manager of Cisco's Cable Products and Solutions Business Unit. "Our relationship with ADC will allow us to deliver end-to-end solutions that enable the mass deployment of broadband packet data, lifeline IP telephony and new video services using ADC's products."

ADC's environmentally hardened, externally mounted network interface unit is scheduled to begin shipping in the second half of 1999, and can be deployed at residence or multiple dwelling unit (MDU) demarcation points. This product and the modified uBR will enable cable operators to offer customers a complete, end-to-end, lifeline telephony-over-IP solution with two key benefits. First, the network interface unit is powered by the network to ensure that the telephone connection remains in operation even in the event of a power failure. Secondly, the IP telephony system will offer competitive, enhanced features such as call forwarding, call waiting, conferencing and caller ID. This functionality is not currently available in other IP telephony solutions.

"This relationship represents a big step forward for cable-based IP telephony," said Jeff Turner, director of IP telephony for MediaOne. "We at MediaOne are focused on providing our customers with a true choice of local telephone providers. This ADC/Cisco partnership is all about solving the missing piece of the puzzle for IP telephony in terms of the specialized equipment our industry needs to provide highly reliable voice communications."

The ADC Voice-over-IP (VoIP) and data solution will be designed to interoperate with the Cisco Universal Broadband Router product family. The uBR provides cable operators with a cost-effective, scaleable interface between subscriber cable modems and the backbone data network, and enables them to deliver high-speed, broadband access to the Internet. The uBR product family is based on the carrier-class stability and functionality of the industry leading Cisco IOS(R) software, maximizing the efficiency of the network bandwidth utilization, and in turn allowing cable operators to derive higher profits from the same scarce network resources.

About Cisco Systems

Cisco Systems, Inc. (NASDAQ:CSCO) is the worldwide leader in networking for the Internet. News and information are available at http://www.cisco.com.

About ADC Telecommunications

ADC Telecommunications, Inc. (NASDAQ: ADCT) is a leading global supplier of voice, video and data systems for telephone, cable television, Internet, broadcast, wireless and private communications networks. ADC's systems enable local access and high-speed transmission of communications services from providers to consumers and businesses over fiber-optic, copper, coaxial and wireless media. Headquartered in Minneapolis, Minnesota, ADC has approximately 8,000 employees around the world and annual sales of $1.4 billion. For additional information, visit our Web site at www.adc.com.

Cisco, Cisco Systems, and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. in the U.S. and certain other countries. All other trademarks mentioned in this document are the property of their respective owners.

Cautionary statement under the Private Securities Litigation Reform Act of 1995

Any forward-looking statements contained herein reflect management's current expectations or beliefs. ADC Telecommunications cautions readers that future actual results could differ materially from those in forward-looking statements depending on the outcome of certain factors, including the risks and uncertainties identified in Exhibit 99 to ADC's Report on Form 10-K for the fiscal year ended October 31, 1997.