Cisco Systems Signs New World MOU with Taiwan's Acer Group; Accelerates Enterprise IP Telephony Acceptance in Taiwan.

TAIPEI, Taiwan--(BUSINESS WIRE)--Aug. 26, 1999--

Cisco Systems, the global leader in networking for the Internet, today announced that they have signed a memorandum of understanding (MOU) with Acer Group, Taiwan's information technology industry leader, to accelerate adoption of Internet Protocol (IP) telephony solutions for enterprises.

Under terms of the agreement, Acer and Cisco will jointly develop and market multiservice networking solutions based on DVVI (Data, Voice and Video Integration) architectures from Cisco.

Under the MOU, Cisco will cooperate with Acer and systems integration partners Sertek and PAGIC to establish DVVI in Taiwan as a de facto model for enterprise IP telephony. In addition, Acer will migrate and consolidate its existing LAN, WAN and voice networks into an integrated voice, video and data network. This new network will be implemented in almost 80 Acer offices globally and become one of the largest showcases for DVVI in the world.

Stan Shih, CEO of Acer Group, said: "Our worldwide cooperation with Cisco will give a competitive edge to our large corporate clients as well as our internal operations. We are also pleased to incorporate Cisco's DVVI technology into the telecommunications infrastructure of Aspire Park, our multifunction industrial park. I am convinced that our relationship with Cisco will take Acer to greater heights as we work towards improving our efficiency, satisfying our customer's needs and enhancing the quality of our service."

Richard Freemantle, senior vice president of Cisco Systems Asia Pacific said: "The New World of Telecommunications has arrived. The idea of converged voice, video and data networks, offering benefits such as ease of management, scalability, lower costs and increased productivity, is no longer just a concept. Enterprises and service providers all over the world are already implementing multiservice applications every day, and we are confident that Acer will be among the leaders.

"By co-developing and marketing DVVI enterprise telephony products with Cisco, Acer has demonstrated the vision and commitment that are cornerstones of successful global companies. Furthermore, Acer will soon become one of the first multinational companies out of Asia to run a totally integrated network. As the complexities of communications in the business world increase, Cisco believes that the simplicity, ease of management and cost benefits of integrated corporate networks will supplant the Old World way of maintaining different networks for LANs, WANs and PBXs."

DVVI architectures let large enterprises deploy multiservice corporate networks that integrate voice, video and data on an IP infrastructure. Such networks greatly increase returns on infrastructure investments, and reduce the costs for installation, equipment, and operation. A key part of such networks will be the CCN (Cisco Communications Network) product line, which consists of three components: Cisco CallManager (virtual switch responsible for call control, digit analysis, routing, and advanced features); Cisco IP phones; and IP to PSTN (Public Service Telephone Networks)/PBX gateways.

About Acer Group

Founded in 1976, the Acer Group's business includes research, manufacturing and marketing personal computers, motherboards, communications products, computer peripherals, semiconductors and consumer electronics. Acer is aggressively moving into other fields as well, including Internet, digital services and application software. Acer is a top-10 PC brand worldwide, with 1998 revenues of US$6.7 billion. More than 28,000 employees work at Acer's 120 affiliates in 37 countries.

Acer is the 3rd largest PC producer in the world, 10th largest brand in desktops, and ranks 7th in laptops and 6th in servers (according to IDC). Acer also is the market leader in 13 countries and among the top five in more than 30 nations. Last year Acer produced 7.5 million PCs and 3.9 million monitors. The parent company, Acer Inc., is Taiwan's largest importer/exporter as well as its biggest private-sector manufacturer.

About Cisco Systems

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

Note to Editors: Cisco, Cisco IOS, Cisco Systems and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. in the U.S. and other countries. All other trademarks mentioned in this document are the property of their respective owners.