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Cisco Powers Hong Kong Broadband Network's 100Mbps and 1Gbps Residential Broadband Services

The world's fastest residential broadband services built on Cisco Metro Ethernet IP and optical network solution

HONG KONG, February 2, 2005 - Cisco Systems announced that Hong Kong Broadband Network Limited ("HKBN"), a leading fixed-telecommunications network service ("FTNS") provider in Hong Kong, has launched 100Mbps broadband service based on Cisco® Metro Ethernet Internet Protocol (IP) and optical network solution. This is the first enterprise-class broadband access service for the mass residential market in Hong Kong. HKBN also plans to deploy the world's fastest residential 1Gbps (1000Mbps) service by June 2005, building on the existing Cisco IP infrastructure.

Hong Kong is one of the world's most diverse and competitive fixed-telecom network service markets. To succeed in this environment, HKBN needs to offer both value and bandwidth benefits to the marketplace. The company has been aggressively developing its end-to-end network infrastructure since it was granted a FTNS license in 2000. Building on Cisco's Metro Ethernet IP and optical network solution, HKBN is dedicated to a 'multi-play' strategy: broadband Internet access, local telephony, IP-TV and corporate data services, all delivered over a single all-IP Next Generation Network.

"To cut through the fierce competition, HKBN required more than just a me-too telecommunications infrastructure. We need an advanced and reliable yet cost-effective network to ensure uninterrupted services at a mass market price point," said Mr. Ricky Wong, chairman of HKBN. "We researched various options, and it became clear that Cisco's solution was the one that best served our needs."

The company decided to invest in Cisco Metro Ethernet IP network in 2000 and later Cisco Optical Network Solution to offer multiple services over a single all-IP network. Within buildings, HKBN chose Cisco's Metro Ethernet IP, which includes installing more than 10,000 Cisco LAN switches and more than 800 Cisco routers. Category 5e copper cables are wired from the LAN switch cabinet to the homes of the targeted residential customers. Fiber-to-the-building (FTTB) was deployed between the buildings using the Cisco ONS 15454 Multiservice Transport Platform (MSTP) and Cisco Catalyst 4507R Switches. The HKBN's optical backbone can support up to 64,000 Gbps.

As of today, HKBN has established an end-to-end, fully vertical and horizontal broadband coverage to 3,100 residential and 600 commercial buildings, reaching 1.2 million homes pass. It plans to expand to 1.8 million homes pass, which is more than 80 percent of total homes in Hong Kong, and to 1,500 commercial buildings. At least 90 percent of HKBN's total homes pass is expected to be serviced by self-owned fiber by mid-2005.

Similar to the 100Mbps service, HKBN's 1Gbps service, which is scheduled for release by June 2005, will be delivered through HKBN's existing in-building Category 5e copper-block wiring. No additional fiber will be needed within the buildings. As HKBN's metro ethernet service is capable of a 10/100/1000-Mbps progression path, only minimum investment is required for deploying the ground-breaking 1Gbps service.

"Hong Kong is a densely populated city characterized by very compact high-rise buildings. It provides a perfect environment for deploying a metro ethernet, IP and optical network solution in a cost-efficient manner," said Fredy Cheung, Managing Director of Cisco Systems (HK) Ltd. "With Cisco's scalable metro optical product line, HKBN can use the same Cisco network used to deliver existing services to roll out the new 100Mbps and 1Gbps broadband services with minimum additional investment. In turn, HKBN's business and residential end customers are able to enjoy higher bandwidth for more intensive and advanced digital entertainment exchange at much lower costs."

About Hong Kong Broadband Network

Hong Kong Broadband Network (HKBN) is a wholly owned subsidiary of City Telecom (H.K.) Limited (NASDAQ: CTEL and HKSE: 1137.HK). Since HKBN's inception in 2000, it has become the largest alternative end-to-end residential broadband network in Hong Kong, with 500,000 subscriptions across its service offerings of voice, broadband and IP-TV. HKBN has committed to expanding its Metro Ethernet coverage from 1.2 million home pass today to 1.8 million home pass (80% of Hong Kong's total homes) within the next 3 years. Information about HKBN can be found at http://www.ctihk.com.

About Cisco Systems

Cisco Systems, Inc., (NASDAQ: CSCO), is 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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