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BT and Microsoft Work with Cisco to Offer Unmetered Calls to MSN Users

Ground Breaking Computer-Phone Service To Use Cisco PGW 2200 and AS5000 Series Gateways

LONDON , United Kingdom , July 25, 2002 - Cisco Systems today announced that it is providing the key technology behind a new voice-over-IP (VoIP) service from British Telecommunications plc (BT) that will allow Microsoft Network (MSN) users to make telephone calls from their computers.

The new service, called PC 2 UK, will strengthen BT's position as a leader in the emerging Internet telephony market while providing Microsoft with a significant value-add for MSN. Users will access the service via MSN's Passport secure server and have unmetered access to BT's Public Switched Telephone Network (PSTN) for a fixed monthly fee. Microsoft Messenger, the PC client, enables the user to integrate instant messaging, multi-media services and telephony under Microsoft's Windows environment, and is delivered as part of Microsoft XP.

"The increasing number of computers in homes has brought a growing demand for the ability to cost-effectively make calls whilst surfing the Web. PC 2 UK addresses this need. Working with Cisco was an obvious choice for this project because they have strong existing relationships with BT and Microsoft, and because their PGW 2200 and AS5000 Series Gateways are tailor-made for this type of application," said John Blake, head of VoIP for BT Ignite, BT's business services and solutions division.

PC 2 UK relies on a PGW 2200 PSTN Gateway which provides intelligent call routing between traditional telephony networks which use SS7, and new technology VoIP networks which use Session Initiation Protocol (SIP) and H.323. Also supported on the PGW2200 is the BT NetChat service, which is H.323 based and operates with Microsoft NetMeeting. The PGW2200 uses MGCP to control the Cisco AS5000 Series Gateways, which provide the speech path connection between TDM and IP environments. The security of the service is assured by a Cisco PIX firewall.

Michael Ansley, Head of Voice Technologies, Cisco Systems EMEA said: "The project between BT, Microsoft and Cisco is a clear example of how all the parties are using the capabilities of new technology to bring benefits and services to their customers. This is a very exciting project for the UK market, and we are delighted they saw us as the right choice."

About BT Ignite

BT Ignite is BT's business services and solutions division, serving customers worldwide. As an information and communications technology service provider, BT Ignite provides integrated data and value-added services to meet the European needs of global multi-site corporates and the global needs of European corporates. BT's extensive global network and strong strategic partnerships enable BT Ignite to serve customers in all key commercial centres of Europe, North America and Asia. The BT Ignite portfolio ranges from desktop and network equipment and software, transport and connectivity, IP-based e-business solutions, managed network services and systems integration to consultancy for complex global requirements. With 17 years of experience in global account management, BT Ignite has 50% of people based outside the UK, serving large business customers worldwide. Further information is available at www.btignite.com

About Cisco Systems

Cisco Systems, Inc.(NASDAQ: CSCO) is the worldwide leader in networking for the Internet. Cisco news and information are available at http://www.cisco.com. Cisco equipment in Europe is supplied by Cisco Systems International BV, a wholly owned subsidiary of Cisco Systems, Inc.

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Cisco, Cisco Systems, the Cisco Systems logo and Cisco IOS are registered trademarks or trademarks of Cisco Systems, Inc. and/or its affiliates in the U.S. and certain other countries.

Contact Information:
Investor Relations Contact(s)
Roberta De Tata Cisco Systems, Inc. 408 527-6388 rdetata@cisco.com
Industry Analyst Relations
Henriette Borch Cisco Systems, Inc. +44 208 824 8603 hborch@cisco.com

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