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Kabel Deutschland Launches Digital Telephony over Cable with Cisco IP Next Generation Network Technology

MUNICH, Germany - May 31, 2005 - Cisco Systems® today announced that Kabel Deutschland (KDG), Europe's largest cable operator, has implemented Cisco Internet Protocol Next-Generation Network (IP NGN) solution to deliver converged voice, video and data, or "Triple Play", services over its cable broadband network serving the city of Leipzig.

The new converged IP NGN infrastructure is supporting the launch of KDG's "Kabel Phone" service, giving customers access to digital telephony services in addition to television, radio and Internet services over the same cable broadband connection. KDG customers participating in the Leipzig pilot project has been able to make digital telephone calls over a cable connection instead of the normal telephone connection since April 1 this year. The KDG "Kabel Phone" service is scheduled to be available in up to fifteen more cities, including Hamburg, Berlin, Munich, Dresden and Koblenz, by the fourth quarter this year.

Günther Brand, director of Service Provider Marketing at Cisco Systems, said: "To remain competitive, cable operators are increasingly looking for new ways to deliver innovative services to their customers. The Cisco IP NGN solution delivers all the benefits of a converged, intelligent broadband network, making it possible for Kabel Deutschland to make considerable cost savings by removing the complexity of managing multiple networks."

"Our cable network is delivering more services to customers: television, radio, high-speed Internet and digital telephony," explained Christian Dahlen, director of Cable Internet, Kabel Deutschland. "These new services need an efficient network to ensure that customers have a high quality experience across all services at an attractive price. We have been able to achieve this with proven technology from Cisco Systems."

The Cisco IP NGN solution includes the Cisco BTS 10200 softswitch, the Cisco PGW 2200 media gateway controller and the Cisco AS5400 Series media gateways. The BTS 10200 softswitch provides high-quality processing of voice calls supporting the industry-standard PacketCable Dynamic Quality of Service specification. The overall solution provides seamless integration of IP-based and PSTN telephone networks and is scalable to serve millions of subscribers.

The Cisco IP NGN architecture allows cable operators to upgrade their infrastructure and launch new voice, video/TV, and data services to residential and business customers. Innovative services, such as wireless networking for the home and office, can be easily and cost-effectively added to the cable operators' service portfolio, helping them to gain competitive differentiation and advantage. In addition, cable operators can rapidly scale their offerings to meet market demand.

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About Kabel Deutschland

Kabel Deutschland (KDG) operates cable networks in 13 Federal states and supplies around 10 million connected TV households in Germany, making Kabel Deutschland the largest cable network operator in Germany and Europe. The company develops new product ranges for digital TV, high-speed Internet and additional services delivered by Internet Protocol. KDG offers a platform, which is open to all providers of digital television programmes. It operates the networks, markets cable connections and seeks to provide a comprehensive service for everything related to the cable connection. The company converted more than a billion Euros during the financial year from 2004/2005 (ending 31 March 2005), with over 2500 employees. In 2003 a consortium of investors, consisting of Apax Partners, Providence Equity and Goldman Sachs Capital Partners, took over Kabel Deutschland from Deutsche Telekom.

About Cisco Systems

Cisco Systems, Inc. (NASDAQ: CSCO) with its head office in San Jose (CA) is, with its 22.0 billion US dollar turnover, (31st July 2004) the worldwide leading provider of network solutions for the Internet. The German branch ,Cisco Systems GmbH, is based in Hallbergmoos near Munich, with offices in Eschborn (near Frankfurt am Main), Hamburg, Düsseldorf, Stuttgart and Berlin. Cisco products are supplied in Europe 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 brands or trademarks of Cisco Systems, Inc. and/or its associated companies in the USA and in other countries. All other brand names in this document are the property of their respective owners. The use of the word "partner" does not imply that a partnership or association exists between Cisco and the other respective company. This document is a Cisco publication.

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