Press Release

LAS VEGAS (Telecom '05) - October 25, 2005 - Cisco Systems ® today solidified its global leadership in the Carrier Ethernet market by introducing new platforms and service-enabling features that will help service providers reach new markets, offer differentiated new services, and help them increase their business through additional revenue streams, while improving their efficiency of existing operations.

The new Carrier Ethernet offerings add to the industry's already broadest portfolio of differentiated services that utilize a wide range of service architectures including Internet Protocol/Multiprotocol Label Switching (IP / MPLS)-based architectures. These flexible deployment options enable service providers to offer best-in-class Layer 2 and Layer 3 virtual private networks (VPNs) along with voice, video, and data (or "Triple Play") services over converged Carrier Ethernet infrastructures for residential and business customers.

The Cisco Carrier Ethernet portfolio also offers service providers flexible deployment options through the combined benefits of optical, routing, and switching products and technologies. Cisco recently received Metro Ethernet Forum certifications for 10 of its Carrier Ethernet products, more than any other vendor. For a complete list of the relevant products and technologies in the Cisco Carrier Ethernet portfolio, click here

Cisco's innovation and technology leadership in Carrier Ethernet has translated to market leadership. According to a recent report* from research firm Infonetics, Cisco is the global leader in Carrier Ethernet switches and router products. Cisco has also demonstrated worldwide customer adoption of its Carrier Ethernet products and technologies with previous announcements involving service providers such as BellSouth, neuf telecom, SBC, Softbank BB Corporation, Swisscom, Tata VSNL, and TeliaSonera.

The Cisco Carrier Ethernet portfolio supports Cisco's IP Next-Generation Network (IP NGN), an architecture/vision that enables service providers to migrate to an IP-based network. By adopting Cisco's IP NGN, service providers are able to deliver innovative services to their end user customers in a more rapid, timely fashion. Also, service providers are able to improve their operational- and capital-expenditure efficiencies and advance the network and service control that they and their end-user customers need for long-term business success.

"The breadth and versatility of Cisco's Carrier Ethernet product lines give service providers options for virtually any type of service they might want to offer over a converged network," said Michael Howard, co-founder and principal analyst, Service Provider Optical, Routing, & Metro Ethernet at Infonetics. "This broad solution set is helping to accelerate the migration of Ethernet and MPLS technologies from the core of an SP's network to the access, eventually reaching to the customer premises."

The new Cisco Carrier Ethernet products and features include:

Cisco ME 3400 Series Ethernet Access Switches

Cisco today added to its Carrier Ethernet switch portfolio with the Cisco ME 3400 Series Ethernet Access switches. Purpose-built for service provider needs, the Cisco ME 3400 Series are the industry's first access switches optimized for both residential triple play and the business VPN services markets. The Cisco ME 3400 is a highly secure solution for metro Ethernet access and offers features designed for service provider business models including "pay-as-you-grow" feature-set bundles, with pricing tailored to the deployment model.

Additional Ethernet Access and Aggregation Hardware, Software

Cisco also introduced new hardware and software support across its Carrier Ethernet access and aggregation portfolio that delivers enhanced options for architectural flexibility for service providers.

In hardware for Ethernet access, Cisco today introduced:

• The Cisco ME 3400
• The Supervisor Engine 32 for the Catalyst 6500 Series switches and the Cisco 7600 Series routers, which delivers MPLS over Ethernet capabilities closer to the edges of a service provider network at cost-effective price points;
• The ONS 15454 ML 100Base Fiber Module extending Ethernet reach, with RPR and advanced QoS to deliver 50msec resiliency and differentiated services;
• The ONS 15454 CE 10/100Mbps Module offering Private Line Ethernet and efficient bandwidth utilization with standards based GFP, VCAT, LCAS.

For Ethernet aggregation hardware, Cisco today introduced:

• The Supervisor II Engine with 10 Gigabit Ethernet uplinks for the Catalyst 4500 Series switches;
• The 10-gigabit SPA Interface Processor (SIP)-600 for the Cisco 7600 Series routers;
• A family of multi-rate (2.5G, 5G or 10G), modular 10-gigabit SPA Interface Processor (SIP)-401/501/601 for the Cisco XR 12000 and Cisco 12000 Series routers;
• Catalyst 4500 Series 48-Port 100BASE-X Switching Module offering mix-and-match optics for maximum deployment flexibility.

In software, Cisco today announced enhancements for a number of products including the Catalyst 3750 Metro Series switches, Cisco 7600 Series routers, Catalyst 6500 Series Switches, Cisco 12000 Series routers, and Cisco ONS 15454/15310-CL platforms. These enhancements deliver a common set of features and functionality across the entire Cisco Carrier Ethernet portfolio.

PCCW Limited, the leading communications provider in Hong Kong, deployed a combination of Cisco 7600 Series routers and Cisco Catalyst 3750 Metro Ethernet switches to build its VPLS network. PCCW's VPLS architecture allowed it to converge a number of different services into one network.

"PCCW is pleased to have deployed the Cisco VPLS Carrier Ethernet solution for the provision of our next generation data services," said Larry Wong, Director of Marketing and Products of Commercial Group, PCCW Limited based in Hong Kong. "Cisco's VPLS Carrier Ethernet technology allows us to create service differentiation and increase revenue growth in the enterprise and commercial markets, as it enables flexible bandwidth utilization, service customization, multiple connectivity, and high level of QoS and availability."

For more Carrier Ethernet announcements from Cisco today that include customer wins at TRE-FOR, DigiWeb, and FPT Telecom, please go to http://newsroom.cisco.com. For more information about Cisco's Carrier Ethernet products, features announced today, go to www.cisco.com/go/metronew.

Pricing and Availability

The Cisco ME 3400 Ethernet Access Switch is expected to be available November and will start at a list price of $1,995 USD. The Supervisor 32 Engine for the Catalyst 6500 and the Cisco 7600 is available now and starts at a list price of $15,000 USD for the hardware and $10,000 USD for the software. The Cisco ONS 15454 CE card is available now and is list priced at $9,500 USD. The Cisco ONS 15454 ML 100Base Fiber module is also available now and is list priced at $17,000 USD.

The Cisco 7600 SIP-600 is shipping now and is list priced at $90,000 USD. The Cisco XR 12000 SIP-401, SIP-501, and SIP-601 cards are available in December and will be list priced with a range of $45,000 to $99,000 USD. The Catalyst 4500 Series 48-Port 100BASE-X Switching Module is expected to be available in November and start at a list price of $6,995 USD.

Cisco IOS software upgrades are available now and are free for customers with Cisco SMARTNet support and service contracts.

* Metro Ethernet Equipment Biannual Worldwide Market Share and Forecasts (Infonetics, Sept. 30, 2005)

About Cisco Systems

Cisco Systems, Inc. (NASDAQ: CSCO), the worldwide leader in networking for the Internet. Information about Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com.

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