CISCO TO POWER SOUTHEASTERN EUROPE'S FIRST IP CORE NETWORK.

Cisco Systems, Inc. has announced it would be providing US$2.6 million's worth of state-of-the-art Internet protocol (IP) equipment to Makedonski Telekomunikacii, Macedonia's state telecommunications company, enabling the company to deploy a highly reliable and scalable network that offers a breadth of IP services to its customers.

The move, part of a US$3.5 million deal with systems integrator Pexim Computers, follows the Macedonian government's decision to privatize Makedonski Telekomunikacii in the first half of 2001. It will make Makedonski Telekomunikacii the first telecomms operator in South-Eastern Europe to adopt the IP backbone solution widely used by its new-world counterparts. The telco has also signed up to provide training under the acclaimed Cisco Networking Academies Programme.

Makedonski Telekomunikacii's order includes an IP core of Cisco 12008 Internet routers with STM-4 interface cards. The network features 9 major points of presence (POPs) each equipped with Cisco 7507 high-end routers, award-winning AS5300 universal access servers and Catalyst switches. There are also 10 small POPs, each with a 3640 server and Complete Network Management (including a Multiprotocol Label Switching (MPLS) virtual private network (VPN) Solution Center, Netflow and Routed Wide Area Network Solution). Cisco is also providing its Professional Services engagement, covering project management, detailed network design, staging and acceptance test plan.

The Cisco 12000 Series routers are the only Internet routers currently in the industry that can enable a breadth of IP services combined with the scalability to terabit system capacity. All the components ordered by Makedonski Telekomunikacii represent the highest available specification in network management. The Cisco 12008 routers, for example, are part of Cisco's premier routing product family, designed and developed specifically for the core of large service provider IP backbones.

Daniel Doncev, CEO of Makedonski Telekomunikacii said: "Today's event marks a very significant milestone for Makedonski Telekomunikacii. We see this as a beginning of wider cooperation with Cisco Systems. Our experts will cooperate with Cisco in developing the migration strategy from today's circuit switched network to the new network of the future, based on packet switching and IP, the so called 'end to end IP,' and in defining and implementing the services which will support the new networked economy."

"Makedonski Telekomunikacii has been a leader in the region with early deployment of fiber optic transmission systems and SDH technology. This strategic decision will further strengthen its leadership and set it firmly on the course of becoming the most innovative, forward looking telco in the region."

The technology will allow Makedonski Telekomunikacii to offer IP virtual private network services such as Intranets and Extranets, MPLS IP VPNs, basic dial-up Internet access, ISDN or dedicated Internet Access services, value-added Internet access services such as premium or managed customer premises equipment and carrier-to-carrier services, such as wholesale dial.

Steve Sarjeant, Cisco Systems regional manager, South Eastern Europe, said: "Cisco shares Makedonski Telekomunikacii's vision of introducing advanced, new-world IP-based services to Macedonia.

"This commitment to deploying services such as virtual private networks, together with their initiative to provide globally benchmarked Internet training through the Cisco Networking Academy Programme, ensures Makedonski Telekomunikacii will play a vital role in helping the Republic of Macedonia to achieve its objective of becoming a model digital economy."

About Makedonski Telekomunikacii

Makedonski Telekomunikacii A.D. is the national telecommunications operator in the Republic of Macedonia. Makedonski Telekomunikacii provides basic telecommunications services in the Republic of Macedonia, including local, long distance and international traffic, leased lines, cellular mobile services, data communications, Internet and other value added services. News and information are available at www.mt.com.mk.

About Cisco Systems

Cisco Systems, Inc. (Nasdaq:CSCO) is the worldwide leader in networking for the Internet. For more information, visit www.cisco.com or call 408/526-8893.