CAGLIARI, Italy - 30th May, 2001 - Cisco Systems, the world-wide leader in networking for the Internet, has today announced its latest implementation at Tiscali, Europe's leading Internet Communication Company. Tiscali is deploying Cisco's AS5800 carrier class remote access servers and SC2200 Signalling Controllers in order to extend its existing network for dial-up access in Italy. In the first implementation of its kind in Italy, Tiscali will create fourteen new Points of Presence (POPs) based entirely on IP technology, which will connect its voice over Internet Protocol (VoIP) and dial access solutions to Telecom Italia's Public Switched Telephone Network. With a view to expanding its network to support new services, Tiscali Italy has also decided to double the capacity of its Cisco 12000 GSR backbone. This improvement to the current infrastructure will enable Tiscali Italy to provide the bandwidth necessary for next-generation IP services such as MPLS-based VPNs, IP QoS and Video over IP.

Originally a regional telephone operator, Tiscali rapidly established itself in the Italian ISP market in 1999 with the creation of a free Internet access service for customers. Looking to the future, Tiscali is now undertaking measures to upgrade its existing network to one based on IP. The latest implementation is designed to extend the IP core to the edge of the network, bringing it closer to customers, in order to provide them with higher quality and faster service. Cisco's IP-based products were chosen in preference to older TDM technology.

Andrea Podda, Italian chief technical officer at Tiscali comments: "We made a business decision to migrate our existing network to IP in order to eliminate single points of failure and to make it easy to quickly roll out new world services, such as voice and video. Consequently we were reluctant to invest in superseded TDM technology for our new PoPs. We evaluated solutions from various providers but Cisco was the only vendor in a position to enable interconnection using IP.

The decision to choose Cisco was reinforced by our intention to implement MPLS later this year. In this competitive climate it will become vital for us to effectively manage and prioritise different types of data relating to diverse services, whilst guaranteeing quality of service. An IP-based architecture will help us do that. "

The AS5800 Access Servers implemented are designed to deliver multiple dial services with a single product. Combining various functions in a single unit they not only reduce operational costs but they are highly cost-effective to scale. Cisco's SC2200 Signalling Controller is a software application that provides Tiscali with an inexpensive solution for integrating Dial Access and Voice over IP (VoIP) into the public network infrastructure. As fewer products are involved compared to a traditional POP set-up, Tiscali will be able to simplify its network architecture and operation and will be able to rapidly develop and deploy new services.

Todd Abbott, Group Vice President, Cisco Systems EMEA comments: "This latest Tiscali implementation is a further demonstration of the economic benefits of combining voice and data services over a reliable IP network. By using Cisco's IP technology, Tiscali will be able to add PSTN based voice services over their IP backbone. This will additionally enable Tiscali to quickly deploy new revenue generating services over an efficient infrastructure and will help them maintain their position as one of Europe's leading service providers."

Testing will begin on the new interconnection with Telecom Italia's network at the end of May. The new POPs will be in use before July 2001.

About Cisco Systems

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

Note to Editors: Cisco, Cisco Systems, and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. and/or its affiliates in the U.S. and certain other countries. All other trademarks mentioned in this document are the property of their respective owners.