Designated Premier Partner by Cisco Systems, Norstan Launches New Business Unit to Focus on Multiservice Networking Market Opportunity.

MINNEAPOLIS--(BUSINESS WIRE)--May 5, 1999--

Norstan, Inc. (Nasdaq: NRRD) today announced the formation of a new business unit, Multiservice Networking Solutions. This new organization will design and install world-class network infrastructure solutions necessary for Norstan customers to capitalize on the convergence of voice, video and data. In addition to voice, video and data integration services, Norstan also will provide customers other network solutions through its infrastructure support service offerings. Michael J. Theisen will head this new organization as vice president of Multiservice Networking Solutions, reporting to Norstan President and CEO David R. Richard.

In making the announcement, Richard said: "As we look toward the future, we will continue to increase our presence in the multiservice networking arena. Under Mike Theisen's leadership, we will consolidate several areas of Norstan expertise in voice, video and data into a single unit that will focus on new opportunities in network application and development."

Norstan's Multiservice Networking Solutions organization will include Norstan's existing Call Center Solutions and Conferencing Services groups, its Phoenix-based tele-education and tele-medicine business, and Norstan Consulting's network infrastructure support services teams. Unified Messaging and Multiservices/Voice Over Internet Protocol services will be developed.

"We're looking forward to building our consulting and delivery capability in this exciting new communications area," said Theisen. "By providing our customers with the best and most up-to-date infrastructure, such as backbone networks from Cisco Systems and others, we help our customers better serve their customers; position them for future growth; and, make them more competitive. In the process, we expect to generate more business applications from Norstan Consulting and drive technology product sales for Norstan's Communication Solutions organization."

Norstan Teams with Cisco Systems

In a related announcement, Norstan's David R. Richard also reported that Norstan has been designated a Premier Partner by San Jose-based Cisco Systems. Through this new business relationship, Norstan will offer multiservice networking solutions to Cisco customers. Specifically, Norstan's new Multiservice Networking Solutions group will work directly with Cisco's Installation and Implementation Services to provide customers with a variety of voice, video and data solutions to meet their business needs. Customers benefiting from the Cisco-Norstan collaboration are those installing or expanding Cisco LANs, WANs and global WANs, in industries including banking, manufacturing, retailing, finance, healthcare and others.

"Cisco Systems offers the industry's broadest range of hardware products used to form information networks or create access to those networks," said Richard. "Norstan is an end-to-end business consulting and technology partner to global customers seeking sustained competitive advantage. This new relationship with Cisco will enable Norstan to provide strategic advisory services, enterprise relationship management and planning, e-commerce and application development and infrastructure services to Cisco customers."

Commenting on the report, Clayton Reed, Cisco System's vice president of service, sales and marketing, said: "Since it was founded more than 25 years ago, Norstan has evolved into a technology services market leader and has demonstrated a high degree of competency in delivering data, voice and video solutions to their customer base. As Cisco continues to drive solutions in the convergence of data, voice and video, the partnership with Norstan enhances our ability to deliver a higher level of value to a wider range of customers."

Norstan and Cisco Systems and associated product names are trademarks or registered trademarks of Norstan, Inc. or Cisco Systems in the United States and/or other countries. The use of the word "partner" or "partnership" does not imply a partnership relationship between Cisco and any of its resellers.