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PRESS RELEASE

Romtelecom Builds Romania's Future Broadband Infrastructure over Cisco IP Next-Generation Network

Residential and Business Customers Benefit from Improved Broadband Access and Services Using One of Central and Eastern Europe's Most Advanced Networks

BUCHAREST, Romania - May 20, 2008. Cisco today announced that Romtelecom has implemented a new Cisco® Internet Protocol Next-Generation Network (IP NGN), based on the Cisco CRS-1 Carrier Routing System. This implementation is part of Romtelecom's strategy to expand broadband services in Romania and to enhance its service capability with technology that offers the highest levels of quality and diversity. By creating this converged multiservice network using Cisco technology, Romtelecom is better equipped to reduce the total cost of ownership, improve the management of customer access and use of services, and support all existing and new wireline and wireless services.

"This is a turning point in the evolution of telecommunications in the region," said Yorgos Ioannidis, chief executive officer of Romtelecom. "Faced with today's complex market challenges, Romtelecom needs to focus on three fundamental objectives: more services, better efficiencies and greater control. To achieve these objectives we need to build a longer-lasting and more economical infrastructure that will support existing services and can evolve to provide a wide range of new, more personalized services over time."

"At Romtelecom, we are seeking to transform the current backbone infrastructure into a next-generation network. With these new technologies we can continue to grow our customer base for new Internet-based services, such as the ClickNet broadband service," Ioannidis added.

The Cisco IP NGN architecture helps service providers transform their businesses, meet the needs of existing and new customer segments efficiently and economically, and deliver managed services and new applications, such as video, to sustain profitability.

With the Cisco IP NGN implementation, completed with support from Cisco's Advanced Services department, Romtelecom is proactively preparing for an increase in broadband demand and business users' requirements for new, highly secure services, such as high-availability virtual private networks (VPNs). Romtelecom is a leader in the growth of VPN products, not only in Romania but also in southeast Europe. Supported by the enhanced features of the Cisco CRS-1, Romtelecom has the tools to offer a higher availability of service to its business customers. With the implementation of the countrywide Cisco IP NGN, Romtelecom's intelligent network can provide differentiated, personalized and valuable new services that satisfy current customers and attract new ones.

"The intelligent Cisco IP NGN is the solution that Romtelecom requires to meet the needs of all customer segments efficiently and economically and to deliver applications to sustain profitability. The solution that Romtelecom deployed includes an innovative, carrier-class technology based on the CRS-1 platform, and it fosters the introduction of new service models, including video and managed services," said Kaan Terzioglu, vice president of Central and Eastern Europe for Cisco.

The Cisco CRS-1 is the industry's only carrier routing system designed to offer continuous system operation, unprecedented service flexibility and system longevity. Powered by Cisco IOS® XR Operating System Software, it is designed for always-on operation while scaling system capacity up to 92 terabits per second. The CRS-1 marks a new era in carrier IP communications by powering the foundation for IP NGNs today while protecting investments for decades to come. This platform helps enable Romtelecom to converge applications onto a common infrastructure, using the capacity of the CRS-1 for applications such as IPTV, while keeping residential and business services separated for security purposes. For more information please visit: http://www.cisco.com/go/crs.

About Romtelecom

Romtelecom, the leader of the fixed communications market in Romania, includes in its data and internet services portfolio leased lines, virtual private network solutions (VPN), guaranteed bandwidth Internet access through iP FIX and MetroNET and best effort Internet access through ClickNet. Also, Romtelecom is the provider for CyberHost, the data center which provides the safest and most reliable hosting space in the country, bundled with a broad offering of communication services, to meet the clients' continuity and disaster recovery needs. More on Romtelecom can be found on www.romtelecom.ro.

About Cisco Systems

Cisco, (NASDAQ: CSCO), is the worldwide leader in networking that transforms how people connect, communicate and collaborate. Information about Cisco can be found at http://www.cisco.com. For ongoing news, please 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, the Cisco logo, Cisco Systems and IOS are registered trademarks or trademarks of Cisco Systems, Inc. and/or its affiliates in the United States and used by them or by affiliates under license in 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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