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PRESS RELEASE

Swisscom Selects Cisco CRS-1 Carrier Routing System for its IP Next-Generation Network

Cisco CRS-1 provides carrier-class foundation for a converged "triple play" network

BERN, Switzerland, May 11, 2005 - Cisco Systems® today announced a multi-million dollar contract to transform Swisscom's entire core network to support Ethernet services for business customers and next-generation "Triple Play" (data, video, voice) over broadband services for residential and wholesale customers. Swisscom will deploy Cisco® CRS-1 carrier routing systems operating the carrier-class Cisco IOS® XR software at all core and aggregation points of presence throughout Switzerland interconnected by 10 Gigabit Ethernet wide-area network links.

The Swisscom engineering team designed the implementation of the network transformation project with Cisco to meet Swisscom Fixnet's technical and business requirements, focusing on customer satisfaction and the launch of triple-play services in 2005. The new core network is designed to deliver increased capacity, performance, predictability and continuous operation to allow Swisscom to rapidly bring to market a host of Internet Protocol (IP)-based multimedia services for residential and business customers, such as advanced audio and video telephony services, home entertainment services and high-priority data services. Swisscom aims to achieve an eight-times increase in traffic handling capacity to create a platform capable of handling both fixed and mobile services in the future, as well as scaling to meet the company's growth targets over the next five years.

Patrice Haldemann, Head of Network Development and Operations, Swisscom Fixnet, said: "With more than 40 percent broadband penetration of all households, Switzerland is at the forefront in Europe. The hunger for broadband will continue to grow in this country. Pure Internet access, videoconferencing, video on demand and file sharing (video and photo) are steadily driving access speeds upwards. However, it is Internet Protocol TV and the forthcoming high-definition TV, which will boost the demand for higher bandwidths. Furthermore, fixed-mobile convergence will be another key driver in the coming years.

"Even if future services are not yet fully modelled, one thing is for sure. As a consequence of technological developments, reduction of production costs and the penetration of IP multimedia services, an explosion of bandwidth in the local loop will take place. Our basic network infrastructure will anticipate this demand in terms of capacity, quality of service and reliability. A reliable and high-bandwidth core will be critical for our success. The Cisco CRS-1 will give us the lead in reliability, performance and capacity to deliver media-rich communications and entertainment services to every home and business in Switzerland." Mr. Haldemann added.

"Swisscom is widely recognized in the industry as a technology and business leader," said Michael Ganser, Vice President of the Central and Eastern European region at Cisco Systems. "Swisscom has always taken market-leading decisions on next-generation business, service and technology strategies. This is why Swisscom's decision to build the foundation for its future on Cisco CRS-1 technology is particularly significant. Apart from the CRS-1's record-breaking multi-terabit capacity, we are also proving that the continuous operation and unparalleled scalability of the CRS-1 design offers superb investment protection for next-generation service providers."

Global carriers and research networks are deploying and trialing the Cisco CRS-1 Carrier Routing System as a key driver of their IP Next-Generation Network strategy to deliver advanced multimedia services. Information on deployments and trials can be found at http://newsroom.cisco.com/dlls/2004/prod_120604b.html.

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About Swisscom Group & Swisscom Fixnet

Swisscom Fixnet stands for the basic business of Swisscom in Switzerland - communication via fixed networks. This involves the distribution of services and products for private and SME-business customers, the management of the network infrastructure as well as the sale of national and international network services. Bluewin offers a comprehensive Internet service. http://www.swisscom-fixnet.ch/

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.

About Cisco CRS-1

The Cisco CRS-1 scales up to 92 terabits per second (Tbps) and is designed to provide continuous system operation for maintenance and upgrades without requiring service interruptions. The Cisco IOS XR Software, a self-healing operating system designed for the multi-terabit Cisco CRS-1, takes advantage of fully distributed and fully modular processes to provide fault containment, automatic fault recovery and in-service upgrades The Cisco CRS-1 delivers service flexibility through its Cisco Intelligent ServiceFlex design, which combines the world's most sophisticated, fully-programmable 40Gb/s ASIC with Cisco IOS XR to separate traffic and network operations on a per service or per customer basis within the system.

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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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