COLT And Cisco To Cooperate On Pan-European IP Network And Services Development.

Business Editors/High Tech Writers

LONDON--(BUSINESS WIRE)--May 17, 2000

COLT Telecom Group plc (COLT), one of Europe's leading providers of high bandwidth data, internet and voice services to business customers and Cisco Systems Inc., the world wide leader in networking for the internet said today they plan to take their existing commercial relationship to the next level. They will also develop a business and marketing partnership which will incorporate new and innovative IP-based solutions for business customers across Europe.

COLT will work with Cisco as its preferred IP equipment supplier to develop applications for new business areas, leveraging Cisco's ecosystem1 to address systems integration, support and network management. COLT will gain access to Cisco's leading IP technologies for voice and data convergence, world wide IP-VPN services, web hosting, application service enabling capabilities, e-commerce solutions and Internet billing, based on a Cisco Powered Network(tm) platform2.

In addition COLT and Cisco will work together on joint marketing efforts to accelerate the design and execution of new IP services, leveraging programs such as JOLT3, Jumpstart4 and the service consulting solutions necessary to facilitate a rapid time-to market for differentiated services addressing specific projects.

Paul Chisholm, COLT President and CEO said: "This agreement builds on the strengths of COLT's optical network infrastructure across Europe and its leadership position in the provision of high quality, high bandwidth data and internet and voice services to business customers. Working with Cisco Systems, we are further strengthening our position as a provider of leading edge IP/data services over our pan-European network."

Bill Nuti, President of Cisco Systems EMEA said: "The alliance with COLT is an excellent opportunity to leverage the business needs of European companies as they seek to take advantage of the benefits of value added IP Services that will drive the transition to the Internet Economy. Cisco is very pleased to be working with COLT on converged voice and data solutions. Together we will embrace the tremendous opportunities that exist in Europe today, and leverage Cisco's experience in providing the next phase of New World services with COLT's reputation for excellent customer service."

One of the first projects under the agreement will see COLT and Cisco develop COLT's IP City project in Stockholm, which will deliver IP services alongside existing voice and data services.

About COLT (www.colt-telecom.com)

COLT Telecom Group plc (COLT) is a leading provider of high bandwidth data, internet and voice services to business and governmental customers in Europe. It currently has operations in 22 European cities in nine countries and plans to be providing service in 30-32 cities by the end of 2001. During the year ended December 1999 COLT's turnover was (pound)401.6 million and it carried 7.8 billion switched minutes of traffic. At 31 March 2000 COLT had installed 2,075 route kilometres of fibre in its city-networks; provided 4.3 million private wire voice grade equivalents; had 4,236 buildings connected to its networks; and served 5,026 directly connected customer accounts. COLT also had over 1,300 business internet customers at the end of 1999. COLT Telecom Group plc is listed on the London Stock Exchange (CTM.L) and Nasdaq (COLT).

About Cisco Systems

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

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

Editor's Note Services:

-- IP-VPN services deliver private IP services over a public

network, including transparently extending the IP based

corporate Intranet over the WAN with flexibility and ease of

connectivity.

-- Web hosting is the provision and maintenance of Web server and

other services by the service provider, enabling the

enterprise to focus on its core business.

-- Application service enabling - by enabling application

services a service provider can offer complex software to

companies quickly and for a fixed, predictable, monthly fee.

-- Internet billing employs the intelligent IP network to provide

flexible billing models including flat rate, usage based and

content based billing, in addition to the traditional time and

distance based billing.

1 Ecosystem: http://www.cisco.com/warp/public/779/servpro/programs/ecosystem/

2 CPN: http://www.cisco.com/warp/public/779/servpro/cpn/

3 Jumpstart: JumpStart Joint Marketing (JJM) programs assist select service provider partners in gaining a critical edge launching Cisco-based service offerings

4 J.O.L.T.: The JumpStart On-Line Toolkit provides service content and "how to" marketing guides.on-line to assist service providers in developing and launching New World services on their Cisco based networks. The JumpStart On-Line Toolkit/ J.O.L.T. provides specific service content and "how to" marketing guides.on-line to assist service providers in developing and launching New World services on their Cisco based networks.