Cisco Systems and General Instrument to work with AT&T on High Speed Internet Access Network; Cisco and GI to develop and trial Integrated IP Broadband Networking Solutions.

HORSHAM, Penn. and SAN JOSE, Calif.--(BUSINESS WIRE)--January 7, 1999--Cisco Systems, Inc. (Nasdaq:CSCO) and General Instrument Corporation (NYSE: GIC) announced today that they intend to work with AT&T on a non-exclusive basis to develop and trial a seamless, end-to-end Internet Protocol (IP) solution that would allow AT&T to offer data, voice and video services over the hybrid fiber-coax network now being deployed by AT&T and TCI.

Although specific agreements have not been reached, the Cisco/GI IP telephony solution under development would allow AT&T to offer its customers the ability to simultaneously watch television, send and receive faxes, surf the World Wide Web and talk on the telephone.

"Cisco's collaboration with AT&T and GI will result in a New World network that will fundamentally change the way communications services are delivered to the consumer market," said John Chambers, president and CEO of Cisco Systems, Inc. "By combining broadband Internet, phone and video services over a single cable line, we are taking a major step towards implementing future integrated data, voice and video telecommunications on a mass market scale."

"T and chief executive officer of General Instrument.

The proposed AT&T broadband network would combine advanced networking and Voice-over-IP (VoIP) technologies to enable cost-effective delivery of consumer services while streamlinince between subscriber cable modems and the backbone data network. The packet telephony gateways would be based on the Cisco AS5X00, voice-over-IP gateway servers.

C efficient to manage, have greater application flexibility, and lower costs for the end user.

The primary gateway to the next-generation network would be GI's DCT-5the proposed architecture, GI's suite of industry-standard Customer Premise Equipment (CPE) solutions would also be integrated into AT&T's network. GI's CPE solutions inctive to traditional circuit-switched telephony systems.

As development efforts move forward, the three companies currently plan to conduct a market trial expected to begin in late 1999, with an objective of moving toward commercial availability next year.

About General Instrumrnet, telecommunications, and video entertainment industries. Visit General Instrument at our Web Site - http://www.gi.com

About Cisco Systems

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

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