NTT Communications Selects Cisco Systems to Rollout New World Network IP VPN Service.

SAN JOSE, Calif.--(BUSINESS WIRE)--Sept. 1, 1999--

Cisco Systems Inc. (Nasdaq:CSCO), the worldwide leader in networking for the Internet, today announced its New World IP Virtual Private Network (VPN) solution has been selected by NTT Communications Corporation for deployment on its new Internet Protocol (IP)-based VPN service. NTT will use Multi Protocol Label Switching (MPLS) to deliver quality of service (QoS), security, and scalability for its IP VPN service.

NTT Communication will deploy the Cisco Gigabit Switch Router (GSR) 12000 series for the optical IP networking core backbone and Cisco 7500 series routers for edge routing to provide a seamless, end-to-end MPLS-based IP VPN solution. NTT Communications establishes a new business class IP service that will reduce the enterprise network's cost by less than two thirds of its existing level, and enable NTT Communications to offer more diversified network applications. These services are scheduled to launch in the first quarter of the year 2000.

"The MPLS-based IP VPN feature allows users to obtain free address area use such as the obtaining of a private address, and provides high business level security," said Hidetoshi Saigo, Senior Manager, Corporate Users Business Division, NTT Communications.

"Cisco's MPLS based IP VPN solution significantly upgrades service provider performance in quickly launching differentiated new services, as well as increasing profitability and improving customer loyalty in today's competitive market environment. It is the ideal answer for service providers who need a highly scalable foundation to deliver low-cost, managed IP services," said Susan Scheer, director of marketing for Cisco System's Services and Solutions Group.

The advantages of Cisco's scalability were a primary reason NTT selected Cisco System's solution, which features various communication interfaces for different capacities of OC-12, OC-48 and OC-192. "This enables us to establish a broad range of traffic speed rate from low level 64 Kbps to Gigabit speeds. These features meet with technical requirements for a next generation IP network, and our network infrastructure is ready for immediate migration to that of Gigabit level Optical IP networking," said Hidetoshi Saigo, senior manager of Corporate Users Business Division, NTT Communications.

In addition to the platform scalability, Cisco's MPLS architecture scales to support tens of thousands of VPNs. This allows service providers to invest in a VPN solution with the confidence of knowing that as customer demands increase, their network investment will scale to support this new customer growth. Moreover, the ability to associate closed groups of users with specific services is critical to a provider's value-added service strategies. It is a key technology to build up the foundation for delivering the next-generation value-added IP application services such as multimedia/multicast, VoIP, Intranet content hosting, e-commerce and extranet for supply chain management.

"We are delighted to have been selected by NTT Communications for this important new service. Cisco's MPLS based IP VPN capabilities will facilitate improved performance and quality of service, enabling service providers such as OCN (Open Computer Network) of NTT Communications to empower their customers to implement exciting new business applications," said Andy Lockhart, Vice President, Japan Field Operations, Cisco Systems.

MPLS, based on Cisco's Tag Switching, is an emergingIETF standard for IP servicedelivery. MPLS labels provide the ability to differentiate service classes for individual data flows, ensuring privacy, quality of service (QoS) and any-to-any connectivity. Cisco is leading the industry in delivering MPLS-based solutions that enable New World services, such as virtual private networks (VPNs) with strong service level agreements (SLAs) its customers demand.

About NTT Communications Corp.

Newly established in July 1999, NTT Communication Corp. is a NTT's long-distance and global carrier following a reorganization of the Nippon Telegraph and Telephone Corporation (NTT), a leading telecommunication company based in Japan. The company has 6,600 employees and annual revenues will be $9.2 billion. For more information, visit NTT Communications' World Wide Web site at http://www.ntt-c.co.jp.

About Cisco Systems

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

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