Cisco and N.E.T. sign software licensing and worldwide reseller agreement.

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Jan. 2, 1996--N.E.T. and Cisco Systems, Inc. today announced two agreements -- one to extend the N.E.T. license to the full suite of Cisco Internetwork Operating System (Cisco IOS (TM)) software, and a reseller agreement whereby N.E.T. will resell and support Cisco's full line of enterprise-level internetworking products.

Cisco and N.E.T. currently have a successful router software license agreement dating since 1989 focusing on delivering internetworking expertise to both companies' customers. The N.E.T. (TM) IDNX (R) multiservice bandwidth manager equipped with the N.E.T. LAN/WAN Exchange (TM) (LWX) module is the only wide area multiservice platform on the market featuring a fully integrated router based on Cisco software. This high degree of integration gives IDNX customers internetworking connectivity to Cisco router networks for WAN applications.

"We are pleased to expand and strengthen the Cisco relationship with N.E.T. based on our experience with the company, its customers and products," said John Chambers, president and CEO, Cisco Systems, Inc. "The multiservice concept complements the power of Cisco IOS software and delivers a considerable advantage to our mutual customers."

"Cisco's internetworking product suite is the clear leader, and virtually every network we encounter has this internetworking requirement as one of its highest priorities," said Joe Francesconi, president and CEO, N.E.T. "We developed the Vista Architecture for the specific purpose of offering our customers the best available solutions for wide area networking; and the relationship with Cisco has been extremely beneficial."

The relationship between Cisco and N.E.T. now includes a reseller agreement whereby N.E.T. will sell and distribute the entire family of Cisco internetworking products offered to enterprise-level customers. N.E.T. will add value by helping customers design and integrate Cisco internetworking products directly into IDNX multiservice backbone networks, and offer contract service direct from N.E.T. Under the umbrella of the N.E.T. Vista Architecture, Cisco routers become part of N.E.T.'s preferred product portfolio for wide area network managers concerned with using the best products available for any type of mission-critical application.

The N.E.T. LWX module optimizes internetwork traffic for the WAN to give N.E.T. IDNX customers the added benefit of intelligent bandwidth management of router traffic for maximum trunk utilization. While being transported over the WAN, the router traffic can be mixed with frame relay traffic, other types of cell or packetized traffic and conventional circuit-switched traffic such as voice and video traffic to help organizations save on long distance charges. This attribute benefits enterprise customers and global carrier/network service provider customers alike.

As a result, Cisco networks concentrating large volumes of LAN-based traffic can interconnect with intelligent N.E.T. IDNX networks that carry WAN traffic on high-capacity T1/E1 or T3/E3 digital service links. In particular, LAN traffic can be carried on the same trunks as voice traffic, frame relay traffic and ISDN traffic for network optimization, efficiency, and cost savings.

A key element for customers success is the depth of experience both companies have with internetworking issues and track record for integrated routing capabilities in a multiservice environment. This agreement is expected to result in greater commonality, higher levels of interoperability and more rapid deployment of Cisco IOS software on LWX modules taking advantage of the combined strengths of the N.E.T. multiservice capabilities and Cisco internetworking products.

The Cisco enterprise-level internetworking products include the Cisco 7000 series of multiprotocol routers which combine Cisco's proven software technology with exceptional reliability, availability, serviceability, and performance features to meet the requirements of today's most mission-critical internetworks. It also includes Cisco's access product family which offers an extensive selection of platforms and software sets for regional offices, remote branch offices, and individual users.

The N.E.T. IDNX family of multiservice bandwidth managers consists of five models with sophisticated networking functions that combine efficient multiplexing, intelligent call-routing, LAN internetworking and routing, frame relay switching, ISDN signaling and network management. The IDNX systems are part of the N.E.T. Vista Architecture, a multiservice architecture for broadband and narrowband wide area networks.

Cisco Systems (NASDAQ: CSCO) is the leading global supplier of enterprise internetworking solutions, including routers, LAN and ATM switches, dial-up access servers and network management software. These products, integrated by the Cisco IOS software, link geographically dispersed LANs, WANs and IBM networks. Cisco news and product/service information are available at World Wide Web site http://www.cisco.com. Cisco is headquartered in San Jose, CA.

N.E.T., headquartered in Redwood City, Calif., is a leading worldwide supplier of multiservice backbone networks used by enterprises and global carriers in more than 50 countries. N.E.T. multiservice WANs integrate voice, data, and video traffic with frame relay, LAN internetworking and ISDN capabilities for today's mission-critical applications. The company is certified to the worldwide ISO 9001 standard for design, manufacturing and servicing. Join us at our worldwide web site: http://www.net.com for further information. -0-

Note to Editors: N.E.T. Financial Analyst Contact is Ann Candelario, N.E.T. Investor Relations, 415/780-5605.

N.E.T., LAN/WAN Exchange and the N.E.T. logo are trademarks and IDNX is a registered trademark of Network Equipment Technologies, Inc.

Cisco IOS is a trademark. Cisco and Cisco Systems are registered trademarks of Cisco Systems, Inc.

CONTACT: N.E.T.

Paul Morrison, 415/780-5010

or

Cisco Systems, Inc.

Adam Stein, 408/526-7388