Cisco Systems Invests to Develop Taiwan Information Industry; Joint Efforts Will Add Networking and Multimedia Capabilities to Taiwanese Products.

SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 27, 1997--Cisco Systems Inc. (NASDAQ:CSCO), the worldwide leader in networking for the Internet, today announced an agreement with Taiwan's leading information-technology organization to help the Taiwanese information industry to develop and deploy networked multimedia technology and applications.

Cisco and the Taiwan Institute for Information Industry (III) will form a Networked Multimedia Lab in Taipei that will concentrate on technology development, training, interoperability, and on encouraging use of networked multimedia business applications. The facility will assist Taiwanese companies in using international standards to develop multimedia-enabled products, and in raising the global competitiveness of those products.

It also will test and certify Taiwanese computer products as being in compliance with the Internet infrastructure and multimedia standards, including features of Cisco IOST software, a platform that delivers network services and enables networked applications.

Four major Taiwanese manufacturers announced they are the first to collaborate with Cisco and the III on incorporating multimedia technology and certifying certain products for standards compliance -- Acer, Tatung, Sun Moon Star and D-Link.

The III will establish and operate the multimedia lab, including recruitment of engineers and consultation with Taiwan companies on implementing multimedia technologies. Cisco will train and support the lab engineers on multimedia technical issues, such as multicast and quality of service (QoS); offer technical advice; help with interoperability testing; and provide networking equipment and technical documentation. The lab is expected to be operational by the end of 1997.

The agreement between Cisco and the III was announced in Taipei by Gary Daichendt, senior vice president for worldwide operations at Cisco. "Cisco has been a leader in developing and deploying the technologies that support networked multimedia applications," Daichendt said. "This joint effort will not only facilitate technical progress in multimedia, but also will help development of the Taiwanese computer and electronics industry by integrating networking capabilities into products."

Chii-ming Yiin, vice minister of the Ministry of Economic Affairs (MOEA), said, "In recent years, the government has aggressively pushed for Taiwan to become the Asia-Pacific Operation Center, and we have devoted a lot of effort toward building the National Information Infrastructure (NII). Our government's high-level executives are glad that Cisco's top management team is visiting and bringing their world renowned, high valued-added networking technology to Taiwan. The technology transfer will elevate the technical capabilities in Taiwan. In addition, the success of Cisco's worldwide business model is also a relatively good example to the industry in Taiwan for overall competitiveness."

Gen. Kuo Yun, president of the III, said, "The collaboration with Cisco and the Networked Multimedia Lab will provide further stimulus to the continued growth of the Taiwan computer industry, as multimedia applications become more widely used. We are pleased to be working with Cisco, the worldwide leader in networking, in this vital area."

Ya-Kang Wang, director of the Industrial Development Bureau, said, "Our government has been working very hard over recent years to make Taiwan a regional manufacturing center in the Asia Pacific region, hoping to position Taiwan as the `island of technology.' Cisco, as the world's largest networking company, is transferring important networking technologies to Taiwan now, and I believe this will enhance the worldwide competitiveness of domestic companies. Furthermore, the Industrial Development Bureau will work even harder to assist local companies and develop application software to facilitate development of our industry."

Chao-Yih Chen, director general of Department of Industry Technology, MOEA, said, "Advanced progress of networking technologies will become a key strength not to be missed in the twenty-first century. By developing the blueprint of the Taiwan Networked Multimedia Lab, we learned that we are facing strong competition internationally. We are working closely with Cisco to create business opportunities globally for the networking industry, and believe that Taiwan can maintain a competitive edge in the worldwide market."

Stan Shih, CEO of Acer, said, "Compatibility with standards will help Acer customers use networked-multimedia applications to enhance business productivity. We are enthusiastic about the benefits that collaboration with industry leaders like Cisco and III will provide."

W.S. Lin, president of Tatung noted, "We applaud Cisco's investment in Taiwan, and expect to participate fully with Cisco and III in the further development of Taiwan's information-technology industry."

Pu-San Weng, chairman of Sun Moon Star, said, "The results of the Cisco-III alliance will be a vital addition to the expertise of Taiwan companies in producing high- quality network appliances and consumer electronics products in high volumes."

Helios Liu, president of D-Link, said, "Networked multimedia technologies will be vital to the development of a world-class network infrastructure in Taiwan, and we are pleased to support Cisco and III in bringing these technologies to Taiwan."

The Taiwan multimedia lab is the latest in a series of activities undertaken by Cisco to encourage networked- multimedia applications. In March, Cisco, Intel Corp. and Microsoft Corp. formed the Networked Multimedia Connection, a cooperative program to facilitate the widespread adoption of networked multimedia applications in businesses using intranets and the Internet. Cisco also has added numerous multimedia-enabling capabilities to the Cisco IOST software platform.

About Cisco Systems Inc.

Cisco Systems Inc. (NASDAQ:CSCO) is the worldwide leader in networking for the Internet. News and information are available at http://www.cisco.com . -0-

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CONTACT: Cisco Systems Inc.

Bob Michelet, 408/526-6636

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