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PRESS RELEASE

BT Places Cisco Systems on 21st Century Network Preferred Suppliers List

Cisco gains status as a preferred infrastructure supplier for BT's IP core and metro area networks

LONDON, April 28, 2005 - Cisco Systems announced further information regarding its strategic involvement in BT's 21st Century Network (21CN) transformation project following BT's announcement today that it has selected Cisco Systems as a preferred supplier. BT has announced it expects to conclude contractual agreements with named preferred suppliers over the summer.

The BT 21CN bid response has involved one of the largest bid teams Cisco has ever assembled. The team comprised members from every functional area of the company through to Cisco Chief Executive Officer, John Chambers, and brings together over 500 person years of knowledge and expertise in BT's business and networks. In addition, Cisco has supported its bid with significant upfront investment in facilities, equipment and staff for the successful and rapid rollout of the Cisco Internet Protocol Next Generation Network (IP NGN) solutions included in the BT 21CN project.

"Cisco Systems is extremely pleased to extend our longstanding and successful relationship with BT to create the 21st Century Network, which is set to become one of the most advanced telecommunications networks in the world," said Cisco CEO John Chambers. "We applaud BT for having the foresight to create a network capable of delivering the most advanced video, voice and data services to businesses and consumers globally. BT's 21st Century Network represents a major step forward for the entire communications industry, and we're proud to play such a key role in its creation."

The growing pace of migration to converged IP networks is reflected throughout the telecommunications industry with major customer deployments of Cisco IP NGN solutions in every region, but the scale and speed of the BT 21CN transformation is set to lead all other Next Generation Network projects announced to date. The substantial investment in infrastructure and technology committed by BT and Cisco, as one of its 21CN preferred suppliers, will contribute to the competitiveness and economic health of the UK.

"BT and Cisco Systems have a shared vision for a new generation of telecommunications networks in which consumers will drive demand for new and innovative video, voice and data services," said Mike Volpi, senior vice president of Cisco's routing business. "BT's 21CN network is the blueprint for future networks, and Cisco's carrier-class technology will enable BT to quickly deliver profitable, new services over a secure IP network, meeting service requirements today and for decades to come."

Cisco's IP NGN vision has been closely aligned with the BT 21CN roadmap to achieve IP network convergence. Cisco's proposal positions the Cisco Carrier Routing System-1 family and IOS XR Operating System as one of the key enablers of BT's network transformation.

Robert Lloyd, President of Operations in the Europe, Middle East and Africa region, Cisco Systems said: "BT's 21CN will become the catalyst for innovation in the UK, and its impact will be felt globally through the wide-ranging social and economic benefits that it can help bring - from better public services in government, education and healthcare, to improved global competitiveness for UK businesses. We are delighted to be so closely involved in BT's 21CN transformation, and to work together to develop our shared vision of the future of IP services."

Today's announcement from BT on the 21CN preferred suppliers is available at www.bt.com/newscentreBT Media enquiries to BT Group Newsroom 24-hour number: 020 7356 5369. From outside the UK dial + 44 20 7356 5369.

About Cisco Systems

Cisco Systems, Inc. (NASDAQ: CSCO), the worldwide leader in networking for the Internet, celebrates 20 years of commitment to technology innovation, industry leadership, and corporate social responsibility. Information about Cisco can be found at http://www.cisco.com. For ongoing news, go to http://newsroom.cisco.com. Cisco equipment in Europe is supplied by Cisco Systems International BV, a wholly owned subsidiary of Cisco Systems, Inc.

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Cisco, Cisco Systems, and the Cisco Systems logo are registered trademarks or trademarks of Cisco Systems, Inc. and/or its affiliates in the United States and certain other countries. All other trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.

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