News Release

Ericsson and Cisco Announce OEM Technology Agreement

Alliance to Provide Unified Switching and Routing Platform for Corporate Customers
Mar 16, 1994

CEBIT, HANOVER, Mar. 16, 1994 -- Ericsson and Cisco Systems haveannounced a worldwide agreement that allows Ericsson to integrate Cisco'srouting technology into new and existing switching products. This agreementwill support Ericsson's drive to supply its corporate customers withintegrated internetworking solutions linking local-area networkapplications with the wide-area environment. The agreement also enablesEricsson to combine its X.25 and Frame Relay expertise with Cisco's leadinginternetworking technology.

The first integrated products will appear in the second half of 1994and will combine technology from Ericsson's Eripax family of wide-areaswitches with Cisco routing technology. The announcement expands theexisting relationship between the two companies, first announced in March1993 , which allowed Ericsson to resell Cisco's internetworking routersand software.

Under the terms of the alliance, Ericsson and Cisco will jointly designa router card while Ericsson will license Cisco's InternetworkingOperating System (IOS) [TM] software for use with the card.

"Today's large companies are looking for proven technologies in theinternetworking solutions they implement. At the same time they need tomaximize their return on investment in existing switching technologies,"said Sverker Bjorling, General Manager, Data Network Division, EricssonBusiness Networks AB. "The combination of Cisco's market leading routingsoftware and Ericsson's leading switching technology will benefit corporatecustomers looking for a single solution for their LAN and WANinterconnection needs."

"Our alliance with Cisco will allow us to provide our customers withone point of contact for their internetworking solutions," continuedBjorling. "It also allows us to offer customers more integrated networkmanagement for the wide- and local-area environments, reducing networkcomplexity and costs."

"This agreement is further proof of the international acceptance ofCisco's routers by industry technology and market leaders," said JohnMorgridge, President and Chief Executive Officer of Cisco Systems."Ericsson is a leading data communications provider and its decision to OEMand integrate our technology represents another milestone in our strategyto make IOS the pervasive internetworking standard."

Ericsson is Europe's leading supplier of private wide-area data networksbased on packet, frame- and cell switching, with a market share ofapproximately fifteen percent. The total installed base of Eripax switchingand access nodes is 5,600 worldwide; over the past three years sales havegrown on average more than 25 percent annually. Ericsson's 70,000 employeesare active in more than 100 countries. Their combined expertise inswitching, radio, and networking makes Ericsson a world leader intelecommunications.