LONDON, UK, April 3, 2000 - Cisco Systems, Inc., today announces that it has been appointed to partner Mslensk miplun, one of Iceland's leading teleprocessing companies, to create up to nine teleprocessing contact centres in regional parts of Iceland.

The contact centres will use Cisco Wide Area Network and teleconferencing solutions, with a Cisco Intelligent Contact Manager (ICM). This means Mslensk miplun, headquartered in Reykjavmk, can seamlessly connect all its sites by transferring data, graphics and sound between them as if there was just one workplace. Tfknival, the systems integrator company and the only Cisco Silver Partner in Iceland, will develop the required technical solutions for the contact centres.

Paul di Leo, Director of Enterprise Solutions for EMEA of Cisco Systems, added: "The wide-area network and teleconferencing solutions will make it possible for Mslensk miplun to handle projects in many places simultaneously, securely and without delay. This initiative shows the role this technology can play in creating flexible employment solutions that are no longer dependent on location."

The contact centres are expected to create up to 300 new jobs by the end of 2001 in regional and remote areas of Iceland, including 150 positions by the end of 2000.

Svavar Kristinsson, head of the board of Mslensk miplun, said: "Over the last decade, the decline of Iceland's traditional primary industries of fishing and agriculture has forced many people to migrate to the capital area of Reykjavmk and its neighbouring communities. Our work with Cisco and Tfknival will go some way to reversing this trend by creating new opportunities within these areas."

A fishing village in the north-eastern part of the country, Raufarhvfn, with barely 400 inhabitants and 634km from Reykjavmk, is the first village selected to take part in the project. Other locations for contact centres include Stvpvarfjvrpur, West Fiords, Hrmsey, and Slafsfjvrpur.

Having observed Mslensk miplun4s build-up of contact centres, the Icelandic Government is now putting together a plan to transfer jobs from the capital area to remote communities and create new jobs within information and marketing. This effort to reverse the on-going migration to the capital area has aroused great interest and expectations in communities around the country.

The president of Iceland, Slafur Ragnar Grmmsson, said at the opening of the centre at ^ingeyri, a town in northwest Iceland: "The opening of this virtual contact centre is an event of extraordinary importance, marking a turning point in regional affairs in Iceland. I have always thought that the future of rural areas was tightly bound to computer technology and it is encouraging to see that this is now happening."

When up and running, the centres are expected to offer contact management services to Icelandic organisations including banks, government institutions, insurance companies and travel agencies.

ENDS

About Mslensk miplun:

Mslensk midlun is an information technology company offering specialised services in marketing and information issues. The company's goal is to assist enterprises, institutions and organizations in reaching their defined goals in information and marketing efforts. Using specially-trained staff and state-of-the-art technology, Mslensk miplun applies incisive methods to increase the quality of the services and improve the results of the customer's marketing efforts. Mslensk midlun enlists first-rate employees in the company's distance-processing centres around the country. The stations are interconnected through the Icelandic Telecom ATM-network which ensures maximum safety in data transfer and high-speed communications. Great emphasis is placed on the training of staff, instruction and quality control.

About Tfknival

Tfknival4s main business as a system integrator is to supply customers with complete information solutions. Their solutions range from standard applications to core business IT solutions and also include catering to the needs of the everyday computer user. The company has defined itself as a knowledge organisation and service company that sells solutions, services and equipment. The company operates a thriving wholesale operation for its own stores and resellers. It offers total solutions in information technology and participates in the activities of its domestic and foreign subsidiaries. The company's place on the Icelandic market is very strong and the strength is most evident in knowledge of IT infrastructures as well as selling of personal computers and peripherals. Tfknival has very powerful franchises for all the principal brands in the information industry. In this regard, Cisco, Compaq, Fujitsu Siemens, Microsoft, Novell, and others can be mentioned.

About Cisco Systems

Cisco Systems, Inc. (NASDAQ: CSCO) is the worldwide leader in networking for the Internet. News and information are available at www.cisco.com.

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