Pathnet Builds Next-Generation Network Across the Digital Divide Based on Cisco Solutions.

Business Editors/Hi-Tech Writers

Spring ISPCON 2000

Booth 565

ORLANDO, Fla.--(BUSINESS WIRE)--May 23, 2000

Business Alliance with Cisco Speeds Pathnet's Advanced Service

Rollout; Designated as Cisco Powered Network

Pathnet, a privately held "next-generation" carriers' carrier, and Cisco Systems, Inc. (Nasdaq: CSCO) today announced at ISPCON in Florida, a business alliance designed to accelerate the development of next-generation networking in under-served markets across the country based on equipment from Cisco.

Pathnet is deploying an industry-unique combination of competitive local access services in the form of dial PRI, DSL and private lines, bundled with high-capacity, long-haul transport, to the nation's second- and third-tier markets. With the announcement of its new network, Pathnet has become a new member of the Cisco Powered Network program.

Pathnet will deploy the Cisco 6160 IP DSL Switch, the Cisco 6400 Universal Access Concentrators, the Cisco ONS 15454 evolutionary optical transport platform, a full range of Cisco routers, and the Cisco MGX 8260 Service Gateway.

This innovative blend of seamlessly integrated network elements delivers a powerful solution set of access options for DSL, private line, VoIP and SS7-PRI. With Pathnet's highly cost-effective fiber-based transport, the services based on these IP-enabled access methods positions Pathnet as one of the nation's first packet-based inter-exchange carrier.

"Pathnet's mission is to bring the 30% of the nation's markets left under-served to our carrier customer's doorstep, and do it rapidly with high-quality service, innovative products and at significant savings," said Dick Jalkut, Pathnet's chief executive officer. "Cisco understands this challenge, has delivered an exceptional integrated switching platform, and is an integral part of our plan to deliver these services and to do so profitably."

"In this competitive marketplace, delivering advanced telecommunications services to a sophisticated service provider takes a unique combination of vision, smart people and hard work ," said Kevin Kennedy, Cisco's senior vice president and general manager, service provider line of business. "Pathnet has demonstrated they have these essential ingredients for success, and we are excited that they are a new Cisco Powered Network and taking these solutions to market."

This announcement was made during ISPCON Spring 2000 in Orlando, Florida. Pathnet is exhibiting its latest product and service offerings during the three-day show at Booth 565.

Cisco Powered Network Program

Pathnet's role in the Cisco Powered Network program demonstrates its ability to provide industry-leading technology solutions and services that are based on Cisco solutions.

Pathnet, along with Cisco, is helping to create a New World communications infrastructure that supports high-value integrated communications services including collocation, Web hosting, security services, virtual private networks (VPNs), network management services and 24x7x365 network operations support.

Pathnet is a next-generation carriers' carrier, providing competitive local access services and high-capacity, digital transport to under-served, second- and third-tier U.S. cities.

Pathnet and its parent company, Pathnet Telecommunications, Inc., provides service to inter-exchange carriers, local exchange carriers, Internet service providers, regional bell operating companies, cellular operators and resellers. Pathnet currently has 6,900 route miles of completed network and 1,200 route miles of network under construction. Additional information about Pathnet can be found on the company's web site at: www.pathnet.net.