AT&T and Cisco Join Forces to Support Indirect Channels and Provide IP Product and Service Bundles for Business.

BRIDGEWATER, N.J.--(BUSINESS WIRE)--Oct. 13, 1998--

Relationship Kicks Off with Small Business Solutions Package,

Joint Web Site Launch

AT&T today announced an integrated channel and cooperative marketing agreement with Cisco Systems, Inc. that includes plans to offer value-added Internet solutions available to all AT&T sales channels, including authorized agents of the AT&T Alliance Program.

Cisco, together with the AT&T sales channels, will qualify and recruit VARs to sell AT&T IP services as AT&T agents. The AT&T Alliance Program will back up VAR efforts with incentives, including ongoing commissions, and other comprehensive support programs for participating Cisco VARs.

"The way we see it, our customers now have a seamless, end-to-end answer from the two market leaders in their categories, with us handling all the integration," said Cisco reseller Scott Strochak, Xtel Networks, LLC. "From Voice over IP to VPN to firewalls, we never have to go outside of our bag of accessible products to find the right hardware/transport solution."

On the offer side, the first solution-to-market, AT&T WorldNet(R) Managed Internet Service (MIS) Small Office Solution, is the first Cisco bundle offered by AT&T and is targeted toward small businesses in all industries. Available beginning this Friday (Oct. 16), this offer is designed to provide small and growing companies with a simple, effective, one-stop means of obtaining Internet access while streamlining their office networks.

"The Small Office Solution will offer off-the-shelf Internet bundles in response to our smaller customers' needs," said Kathleen Earley, vice president, AT&T Internet Services. "We're making it easier for these companies to overcome cost and complexity concerns so they can successfully venture into more productive Internet services that move them beyond the typical PC/modem set-up."

This AT&T WorldNet MIS Small Office Solution is a full-scale, high-performing, end-to-end package, including access, routers, pipes and tools in one easy-to-install-and-use package. The integrated bundle will incorporate the best both companies have to offer through such features as:

-- Industry-leading AT&T/Cisco customer service and support

-- AT&T Dedicated Business IP Service, including a 56K port,

local loop, a Cisco 1600 Series Router w/internal CSU/DSU,

one zone of Domain Name Service (DNS) and 10 network

mailboxes

-- Tele-Install capability

-- Network News Feed Service

-- Packet filtering 

-- Network Usage Reports

-- AT&T Managed Network Solutions (full customer support

delivered by AT&T Solutions for the bundled managed router

services)

The Small Office Solution is offered at $650 per month.

"This relationship reinforces the importance of empowering the Internet Generation of small and medium-sized businesses," said Eugene Lee, Cisco vice president, Marketing, small/medium line of business. "And with industry research forecasting a $63.5 billion internetworking market for small- and medium-sized business at nearly triple the 1997 figures for the year 2000 -- the industry opportunity is enormous."

AT&T and Cisco also plan to combine forces in this multifaceted relationship to launch a Web site to serve as a joint information resource for product offers, special promotions, sales incentives and development of an online ordering capability. Scheduled to debut later this fall, the continually expanding site will offer product information, special promotions and technical tips. Hyperlinks to the joint site will be found on both AT&T (http://www.alliance.att.com ) and Cisco Systems (http://www.cisco.com) sites.

About the AT&T Alliance Program

The AT&T Alliance Program was developed as a strong, integrated and complementary sales channel that brings incremental value to AT&T and its customers. Approximately 500 agents currently participate in the programs, all with competencies that extend the depth of expertise that AT&T brings to the customer in understanding their business and providing data and IP solutions. Recently, AT&T's channel program captured the highest scores in a VAR survey, with the AT&T Alliance Program named the winner in five of the top seven elements considered most important to VARs as reported in a CMP Media research unit ISP survey.

About AT&T

AT&T Corporation is the world's premier communications company and a leading Internet service provider. AT&T serves more than 90 million customers, including consumers, businesses and government. The company has annual revenues of more than $52 billion and 130,000 employees. It runs the world's largest, most sophisticated communications network and is the leading provider of long-distance, data transport and wireless services. AT&T operates in more than 200 countries and territories around the world. About Cisco

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

For more information, call 1-800-553-6387.

For more information on the Small Office Solution, call 1-800-831-5259.