Press Release

SAN JOSE, Calif., August 27, 2001 - In another strong declaration of voice-over-IP (VoIP) momentum around the world, Cisco Systems, Inc., the worldwide leader in networking for the Internet, announced today that i-Next, the new data division of Operadora Protel, has expanded its packet voice IP services to six cities in Mexico and is carrying about five million minutes of voice traffic monthly. i-Next plans to expand to three additional cities shortly and grow its service base to 35 cities in the next six to twelve months.

When i-Next decided to build out its VoIP network, it originally focused on reducing the cost of long distance services for its commercial subscribers. Today, i-Next is expanding its IP network to offer customers enhanced services such as dedicated Internet access, wholesale dial, virtual private networks (VPNs) as well as Multi-Protocol Label Switching VPNs and long distance VoIP.

"Cisco was the only company that presented a long-term strategy to reduce our costs - and they've delivered, " said Benigno Perez-Lizaur, CEO of i-Next. "In the two months since we've turned up service, we've achieved savings of around $145,000 each month."

"We are very pleased that i-Next has chosen Cisco's Open Packet Telephony infrastructure for its IP multi-service network, joining a number of global services carriers that are transporting millions of VoIP minutes, " said Alistair Woodman, director of marketing, voice technology center at Cisco. "In addition to the cost savings they are already realizing, i-Next will benefit by offering the enhanced services their business customers seek."

The i-Next Cisco Powered Network includes Cisco award-winning AS5300 voice gateways, as well as Cisco SC2200 Signaling Controllers for SS7 interconnect with the Public Switched Telephone Network (PSTN) in more than 50 cities throughout Mexico.

The IP backbone includes the industry-leading Cisco 12012 Internet Routers and 12008 Internet Routers, which deliver the highest scalability, flexibility, and highest performance for service delivery across all networks and locations. In June, Cisco announced that its Cisco 12000 series Internet Routers provide the leading solution for carriers who want to deploy delay-sensitive applications such as voice and multimedia in IP networks, based on Miercom lab test results. At the i-Next network edge are Cisco 3640 access servers, AccessPath-V3 and Cisco 7206 routers.

Prior to building a total IP network, i-Next had a traditional telephone network offering long distance, 800 and 900 numbers as well as pre-paid calling cards. With its new, open standards-based Cisco IP infrastructure, i-Next can now quickly and cost effectively offer higher margin services that will ensure their future growth while maximizing customer satisfaction.

About i-Next

i-Next is the data division of Operadora Protel, one of Mexico's leading long distance companies founded in 1995. i-Next specializes in selling multi-service data and voice solutions to commercial customers throughout Mexico, including Internet Access, Private Networks, Web Hosting and IP Telephony. i-Next is a Cisco Powered Network.

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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