Cisco and Korea Thrunet Sign Strategic Alliance To Speed Deployment of Advanced IP Infrastructure and Services in Korea.

Business Editors & High-tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 29, 2000

Cisco Systems, the worldwide leader in networking for the Internet, today signed a Memorandum of Understanding (MOU) with Korea Thrunet Co. Ltd. (Nasdaq:KOREA), Korea's leading supplier of high-speed Internet services and corporate leased lines.

Under terms of the agreement, Korea Thrunet will leverage Cisco technology and services to deploy next generation IP (Internet Protocol) infrastructure that integrates combined voice, video and data traffic together with new broadband cable services and applications. In turn Cisco will support Korea Thrunet in the development of these applications, many of which are aimed at enhancing the firm's services and reaching new markets.

The new applications, to be announced in due course, are expected to benefit Korea Thrunet's broadband cable subscriber base, which has increased to 155,710 as of Jan. 31, 2000, representing an 841 percent increase year-over-year. Korea Thrunet says it is adding more than 20,000 new cable data subscribers a month.

According to market researcher IDC, Korea remains one of the largest Internet markets in Asia with more than 3.26 million registered users in 1999. According to Korean government estimates, the number of actual users is as high as 12 million. IDC predicts that registered users will reach more than 10.18 million by 2004, with revenues from Internet commerce revenue forecast to amount to U.S. $17.6 billion.

"The strategic role of the Internet and its impact on people, companies, countries and governments is unprecedented and represents a major force behind the strongest global economy in history," said John Chambers, Cisco's president and CEO. "This agreement reaffirms our commitment to bringing Internet access, applications and services to every country worldwide and demonstrates the global reach of the Internet economy."

"The agreement cements our long working relationship with the world's largest provider of Internet hardware products and services," said Kim Jong-Kil, Korea Thrunet's president and CEO. "We strongly believe that we will be able to increase our market share together as a direct result of this agreement and the widespread usage of Cisco products and services."

Korea Thrunet will leverage Cisco's products across its entire network to increase capacity and reduce operational costs. The company will also roll out additional high speed Internet access services over cable TV networks. On the marketing front, Korea Thrunet will participate in a Cisco branding programme designating its services as a Cisco Powered Network (CPN) services.

About Korea Thrunet Co. Ltd.

Korea Thrunet is the leading provider of high-speed Internet services in Korea, with 112,995 end users as of Nov. 30, 1999. Korea Thrunet service features "always-on" Internet access at speeds of up to 100 times faster than traditional dial-up Internet access, with compelling multimedia content ranging from on-demand music videos and Internet telephony to multimedia bulletin boards and chatting services.

Korea Thrunet also provides facilities-based data communications services to more than 150 corporate customers in Korea, including several major telecommunications carriers such as SK Telecom Co. Ltd. and Shinsegi Telecomm Inc.

More information on Korea Thrunet can be found at www.thrunet.com

About Cisco Systems

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

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