News Release

Cisco Systems, Nortel and Shiva Team to Provide New Virtual Dial-Up Service Opportunities

Virtual private dial-up networks become a reality with
Jun 19, 1996

Virtual private dial-up networks become a reality with proposedstandards-based functionality

SAN JOSE, Calif. - June 19, 1996 - Cisco Systems, Inc. today announced theavailability of technology that will enhance the ability of serviceproviders to build Virtual Private Dial-Up Networks (VPDNs). Thetechnology - Layer Two Forwarding (L2F) - has been submitted to theInternet Engineering Task Force (IETF) for approval as a standard. Inaddition, Northern TelecomInc. (Nortel)and Shiva Corp. (Shiva) haveannounced their support for L2F.

L2F functionality opens new market opportunities in the dial-up andInternet service markets by allowing telecommunication carriers and otherservice providers to offer dial-up remote access to private networks as anoutsourced solution. This alternative to existing remote access solutionsbroadens the scope of providers gaining entry to the enterprise in aunique, secure manner. The new technology is contained in Cisco IOS(tm)software, the foundation for all Cisco products, which supports themultimedia requirements of both LAN and WAN protocols, optimizing WANservices which control intranetwork access.

"The explosive growth of Internet users has caused providers to look foralternative methods to support the dial-up communities," said VirginiaBrooks, a senior analyst at Aberdeen Group. "Private access for remoteusers over public service backbones will become a significant piece of theemerging communications picture. Cisco, Shiva and Nortel are paving theway for these Virtual Private Dial-Up Networks by supporting L2Ftechnology."

Industry Support

Nortel and Shiva are the first vendors to announce their support for L2Ftechnology.

"L2F will be a key component of a new product capability on our RapportDialup Switch product line and will enable service providers to offer newrevenue generating internet services," said Micky Tsui, vice president,Internet solutions of Nortel.

"We plan to implement L2F in the Shiva family of remote access servers,furthering our commitment to delivering standards-based products andtechnologies for remote access," said Guy Daniello, vice president ofworldwide R&D for Shiva. "By working with Cisco and Nortel to enhance L2F,we will be providing our customers with the technology that goes one stepfurther in providing secure virtual private networking over the Internet."

About Virtual Dial-Up Service

Benefits to the service providers and end users are immediate where L2F isleveraged. Remote clients gain secure, easy access to corporate networksthrough existing public infrastructures, while retaining control ofsecurity and manageability. L2F allows service providers to offer a newclass of virtual dial-up solutions allowing the transportation of multipleprotocols and use of unregistered addresses over shared or public networks.

Multiple corporate networks can use a single local telephone numberterminated on a service provider's dial-up switch or access server. Theaccess server establishes identity, sets up a private tunnel to the user'scorporate gateway router and tunnels clients to that gateway. Thecorporate gateway is responsible for authentication of the remote user,thereby ensuring enterprise control of access security and addressing.

About Cisco Systems

Cisco Systems (NASDAQ: CSCO) is the leading globalsupplier ofinternetworkingsolutions for corporate intranets and the global Internet.Cisco's products, including routers, LAN and ATM switches, dial-up accessservers and network management software, are integrated by the Cisco IOSsoftware to link geographically dispersed LANs, WANs and IBM networks.Company news and product/service information are available at World WideWeb site is headquartered in San Jose, California.

About Nortel

Nortel's Rapport Dialup Switch portfolio makes access and use of theInternet easier, reliable, secure and more productive for users, whilecreating new revenue opportunities for Internet service providers. TheRapport Dialup Switch portfolio is ideal for carriers and service providersoffering Internet and intranet access and telecommuting. Nortel'sEnterprise Networks Division provides custom-designed enterprise networksfor businesses of all sizes around the world. Nortel had 1995 revenues of(U.S.) $10.7 billion and has approximately 63,000 employees worldwide.

About Shiva

Founded in 1985, Shiva Corporation (NASDAQ: SHVA) is a global, full-lineprovider of remote access solutions, systems and services. Its productsenable users and user sites at enterprises of all sizes to connect withcorporate information resources, on-line services and the Internet. Shivaoffers a full range of award-winning, analog and digital remote access andcommunications servers. With partnerships that include Hewlett-Packard,IBM, Microsoft, Netscape, Motorola and Nortel, Shiva hardware and softwareare marketed by many of the world's leading computer and communicationsequipment manufacturers and telecommunications companies. The company isbased in Bedford, Mass., with offices worldwide and a corporate R&D andmanufacturing center in Edinburgh, UK.