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PRESS RELEASE

Fujitsu and Cisco Deliver Next-Generation High-End Routers Based on Strategic Alliance

SAN JOSE, Calif., and TOKYO, Japan, May 24, 2005 - Fujitsu Limited and Cisco Systems, Inc. today introduced the first product to be delivered under the strategic alliance announced on Dec. 6, 2004, a Fujitsu and Cisco CRS-1 Carrier Routing System built on the Cisco IOS XR next-generation operating system.

In December 2004, the companies reached a fundamental agreement to form a strategic alliance in the field of routers and switches. The companies have since worked together to customize the Cisco IOS XR operating system for high-end routers, and focused collaboration on enhancing product functionality and the support structure needed to respond to the demanding quality requirements of Japanese telecommunications carriers.

The newly introduced product is expected to become the core routing platform of choice for Internet Protocol Next-Generation Networks (IP NGNs), enabling service providers to converge their costly and complex service-specific networks to deliver the services and applications demanded by their customers.

"The basis for Cisco's strategic alliance with Fujitsu is to enable both companies to identify synergies, and combine resources all toward delivering on customer requirements with value-added, industry-leading networking solutions," said Tony Bates, vice president and general manager of Cisco's Carrier Core and Multiservice Business Unit. "Today's announcement demonstrates that the companies have already made tremendous progress, which provides momentum for future initiatives."

"A shift toward higher value-added subscriber services is leading to new market opportunities in Japan's telecommunication service market, which is a world leader with respect to broadband networks," said Chiaki Ito, corporate executive vice president and System Products Business Group president, Fujitsu Limited. "Through this alliance, we're creating products that will be core elements in realizing these new markets and part of a full lineup of routers and switches that -- together with our IT solutions -- will enable telecommunication service providers to deliver even more competitive offerings."

Strategic Alliance Engagements

(1) Providing total solutions
Fujitsu provides total solutions including a variety of access methods and applications to create high added value for the expanding IP networks of carriers. Incorporating the results of their collaboration to date, the new high-end router being released today will make it possible to create fast, high-capacity, highly reliable and secure IP networks.

Fujitsu will continue to utilize its rich experience in platform technology, system integration and system administration to offer optimal end-to-end solutions to telecommunications carriers and enterprises, with offerings ranging from infrastructure such as servers, middleware and networks, to complete business systems.

(2) Joint development of Cisco IOS XR operating system for next-generation high-end routers
The two companies are pursuing cooperative efforts on features for the Cisco IOS XR operating system, the first time Cisco has joined with another communications equipment manufacturer in router operating system development. IOS XR is the industry's only self healing operating system for multi-shelf carrier infrastructure, which provides granular process independence, fault containment and isolation, and software upgrades by process for "always on" operation.

To augment Cisco's ongoing program of IOS XR certification testing for various global markets, the companies have begun joint certification testing specifically for usage scenarios in the Japanese market, utilizing additional testing criteria based on Fujitsu's long experience in the telecommunications business.By combining Fujitsu's and Cisco's engineering capabilities, the companies are working to accelerate the development of features critical to Japanese service providers and large enterprises. The companies intend to offer the enhanced new operating system to support telecommunications carriers' IP Next Generation Networks, as well as in the upcoming co-branded version of the Cisco XR 12000 Series.

(3) Joint efforts to improve customer satisfaction
Networks have become lifelines for public infrastructure and corporate IT systems, leading to ever-increasing requirements for quality and reliability. In order to satisfy the needs of customers in Japan, the two companies are working to ensure high availability and enhance functionality.

Fujitsu and Cisco quality assurance teams are collaborating to manage quality control. The companies are jointly analyzing quality data, and communicating with joint engineering teams to incorporate innovations to drive continued product reliability. Fujitsu will collaborate with Cisco's Technical Assistant Center for problem and analysis and resolution, and will allocate resources for Engineering Fault Analysis at San Jose, CA. Through combined resources, the Cisco and Fujitsu Strategic Alliance provides world-class networking products and support, and faster response to customer requirements.

The new next-generation high-end router released today will be exhibited at the following events.

  • Broadband World Forum (Pacifico Yokohama): At the Fujitsu booth for 2 days from May 31 (Tue)
  • NETWORK+INTEROP 2005 (Makuhari Messe): At the Fujitsu booth for 3 days from June 8 (Wed)


  • Pricing and Shipment (in Japan)

    ProductPrice (tax excl.)Projected Shipping Date
    Fujitsu and Cisco CRS-1From 47 million yen (8-slot type)June 2005

    About Fujitsu

    Fujitsu is a leading provider of customer-focused IT and communications solutions for the global marketplace. Pace-setting device technologies, highly reliable computing and communications platforms, and a worldwide corps of systems and services experts uniquely position Fujitsu to deliver comprehensive solutions that open up infinite possibilities for its customers' success. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 4.7 trillion yen (US$44.5 billion) for the fiscal year ended March 31, 2005. For more information, please see: www.fujitsu.com

    About Cisco Systems

    Cisco Systems, Inc. (NASDAQ: CSCO), the worldwide leader in networking for the Internet, celebrates 20 years of commitment to technology innovation, industry leadership, and corporate social responsibility. Information about Cisco can be found at http://www.cisco.com. For ongoing news, go to http://newsroom.cisco.com.

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    Trademarks
    Product names and company names shown are the trademarks or registered trademarks of the respective companies.

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