Cisco Announces Continued Global Momentum in Broadband Cable IP Next-Generation Networks.

SAN JOSE, Calif. -- New Customers, Expanded Services, Technology Trials Demonstrate Increasing Adoption of Cisco IP Technology by Cable Companies

Building on its commitment to deliver innovative Internet Protocol (IP) Next Generation Networks (NGN) to service providers worldwide, Cisco Systems(R), Inc. (Nasdaq:CSCO) today announced strong momentum in helping broadband cable operators build and transform their networks to profitably deliver a growing portfolio of differentiated consumer and commercial services.

Cable companies are leading an industry movement by offering a bundle of services, including local and long distance voice communications, broadcast and video on demand entertainment, high-speed Internet access and wireless/mobility services, to consumers and businesses. To expand their service offerings, drive revenues and improve capital and operational expense efficiencies, cable operators are actively migrating to Cisco-based converged IP network infrastructures.

The Cisco IP-NGN architecture enables cable operators to create additional consumer value and an enhanced competitive position by increasing innovation, enabling feature integration, and accelerating time to market of its service offerings. In addition, with a Cisco IP NGN, cable operators can rapidly scale their offerings and deliver a compelling end user experience. The standards-based Cisco IP-NGN architecture meets the capacity needs of video-on-demand and availability requirements of new communications services, while delivering significant fiber, capital and operational efficiencies.

In recent weeks, Cisco has issued several important announcements of new customer wins, technology trials and expanded service offerings based on its cable IP NGN solutions. Customers are taking advantage of the Cisco IP NGN architecture based on three layers of convergence which are well established in service provider networks today:

--  Network convergence: allows operators to eliminate multiple
        layers or parallel networks and offer multiple services over a
        single network, helping to improve providers' fiber, capital
        and operational efficiencies.

    --  Service convergence: Establishes network intelligence and
        permits service continuity and common features across multiple
        forms of network access. Such service continuity can be a
        major differentiator in the market and can attract new
        customers and reduce customer churn.

    --  Application convergence: Supports the integration of
        applications based on an open systems architecture, allowing
        cable operators to combine many different services over the
        same connection for delivery to a variety of end devices.

Cisco is making advancements in each of each of these areas, specifically within multiservice digital cable networks.

Network Convergence

Broadband cable operators are deploying, managing and maintaining a single multiservice digital cable network based on IP technologies. Cisco is providing industry-leading, innovative technology to drive network convergence and help customers significantly reduce infrastructure costs. Recent examples of Cisco's efforts are:

--  Comcast selected Cisco 7600 Series Routers and optical
        Ethernet technologies to help build its IP NGN designed to
        support and accelerate the delivery of high-speed Internet,
        standard and high definition digital broadcast, on-demand
        video programming and voice services.

        "Cisco's flexible networking solutions are helping us to
        optimize our capital and operational expenditures, and are
        providing the foundation for our future integrated services
        strategy," said Ray Celona, Comcast's senior vice president of
        National IP Engineering Operations.

    --  Cisco Systems(R) and Himawari Network, Inc. recently announced
        they have begun trials of Wideband Protocol for DOCSIS(TM), a
        new technology able to deliver up to 1 gigabit per second
        (Gbps) broadband speeds to consumers and businesses over
        existing hybrid fiber coax (HFC) networks.

    --  ONO, a leading cable operator based in Madrid, Spain, recently
        announced that it is delivering broadcast-quality television
        content using a next-generation digital video transport
        network based on Cisco technology. ONO has selected Cisco to
        deploy a Service Control solution, which will allow ONO to
        offer personalized broadband services and differentiate
        against the competition. ONO offers telephony, television and
        Internet services to customers -- in 22 regions across Spain.
        (For more on this announcement visit
        http://newsroom.cisco.com/dlls/2005/prod_032105.html).

Service Convergence

Cable operators are migrating toward or delivering "triple play on the move" which combines voice, video, data and mobility services. To achieve true service convergence, these operators must deliver common features across multiple services and provision and manage a service over a range of access mediums. The following activities and announcements from Cisco underscore the company's move to accelerate service convergence and integrate further intelligence within the network:

--  Charter Communications has deployed Cisco's cable network
        infrastructure to handle the rapid growth of its broadband
        customer base. Charter required a platform that would enable a
        high level of reliability, while minimizing capital
        expenditures and operating expense.

        "As a Cisco Powered Network partner, Charter Business has
        based its multi-services strategy on a Cisco IP NGN that
        provides a service-rich, cost-effective network infrastructure
        to help us grow our commercial service offerings and meet our
        overall business objectives," said Steve Santamaria, vice
        president of Charter Business. "While Charter Business has
        seen strong demand for its services, particularly data
        services, where we saw 46 percent revenue growth last year, we
        continue to focus on penetrating the market further with
        differentiated IP-based data, voice and video services for
        business customers. Our relationship with Cisco as a
        technology supplier as well as a selling partner will help us
        expand our service offerings and grow our revenues, while
        keeping network operational costs low."

    --  Comcast has selected Cisco as a technology provider for the
        rollout of its Comcast Digital Voice service. Comcast will be
        using the Cisco BTS 10200 Softswitch platform in selected
        markets and also plans to take advantage of Cisco's Session
        Initiation Protocol (SIP) capabilities to enable advanced
        real-time communications features.

    --  Cogeco Cable recently announced that Cisco has been selected
        as a strategic supplier to provide IP network technology in
        support of delivery of its residential digital phone service,
        which will launch later in 2005. Cogeco's residential voice
        service will be based on network technology provided by Cisco
        Systems(R) including IP softswitches and voice gateways. For
        more on this announcement visit
http://www.cogeco.ca/files/pdf/press_releases_en/PR_CCA_ENG_022105.pdf

        "There is strong alignment between Cisco's and Cogeco's vision
        to fully exploit the power of Broadband Cable IP Next
        Generation Networks to provide a range of advanced
        telecommunications services to our customers," said Francois
        Audet, director of telecommunications at Cogeco Cable.
        "Because the Cisco platform supports two major standards, SIP
        and PacketCable, we are extremely well positioned to leverage
        this exceptional capability by offering a full suite of
        integrated, value-added services to targeted markets in the
        near future."

Application Convergence

Home networking has become more than sharing an Internet connection among PCs. IP-based applications such as voice communications, entertainment and security services are fueling the growth for home networking products while increasing the value and appeal for service providers. Linksys, a division of Cisco Systems, gives cable operators an opportunity to extend its reach into the consumer's Connected Home. The following are ways Cisco and Linksys are enabling operators around the globe to deliver innovative new service offerings that extend the broadband network into the home:

--  Comcast deploys Linksys residential gateways operating in
        CableHome(R) mode, which enables the cable service provider to
        offer its subscribers' networked services through a
        Comcast-managed home networking device. As a result, customers
        can simply focus on enjoying the experience. Comcast can
        update the gateway with new services and features or perform
        remote troubleshooting to give customers a more robust and
        worry-free way to access and share their broadband experience.

    --  Linksys provides a portfolio of hardware solutions to support
        the delivery of IP services around the home or office.

    --  Linksys is an active member of CableHome(R), a
        CableLabs-managed initiative which develops the interface
        specifications necessary to extend high-quality cable-based
        services to network devices within the home.

"Cisco is committed to helping cable companies succeed by accelerating their transition to IP NGNs capable of delivering services that consumers and businesses demand, and helping cable operators accelerate service delivery and time to revenue while reducing operational costs," said Jeff Spagnola, vice president, service provider marketing segment, at Cisco Systems. "To help operators realize their IP NGN visions, Cisco continues to invest in cable technology and system development, system testing, and implementation services."

About Cisco Systems

Cisco Systems, Inc. (Nasdaq:CSCO), the worldwide leader in networking for the Internet, celebrates 20 years of commitment to technology innovation, industry leadership, and corporate social responsibility. Information on Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com.