News Release

Alcatel and Cisco Join to Answer Demand for Integrated Internet and Telecom Solutions

Cisco Service Provider Solutions New York, NY -- June 23,
Jun 23, 1997

New York, NY -- June 23, 1997 -- Alcatel Telecom and Cisco Systems todayannounced that they have signed an agreement to work together toprovide solutions that will meet the growing demand for integratedInternet solutions in public networks.

Under the agreement, Alcatel will contribute expertise in the areas ofpublic switched networking, high-speed access and voice communications, whileCisco provides expertise in data communications and Internet technology.The goal of the collaboration is to offer complete networking solutions totelecommunications carriers and other Internet service providers worldwide.

This agreement broadens the two companies' existing relationship,composed of a major reseller agreement for more than three years.

According to a memorandum of understanding, the two companies plan tocollaborate in several areas of communications technology, with aprimary focus on developing network backbone and access solutions.

Alcatel plans to integrate Cisco IOS(TM) software technologyinto several products used by telecommunications service providers. Theanticipated initial applications will be on Alcatel ATM and ISDN switches,with possible extension to SONET/SDH transmission and GSM mobile networkssolutions. As part of its Cisco IOS integration plan to deliver high-speedIP traffic over ATM, Alcatel intends to use Cisco's Tag Switchingtechnology wherever appropriate.

Alcatel and Cisco plan to work together in the Internet Engineering Task Force(IETF) to develop a common set of standards for fusing routing andswitching technologies. These standards would enable network operators tobuild large, high-speed IP networks with ATM switching technology in the backbone. Approval of such a standard would help service providers use asingle network infrastructure for both Internet and traditionaltelecommunication traffic.

Cisco intends to support Alcatel DMT ADSL technology and to integrate andmarket Alcatel ADSL modems, chips and products in its solutions. ADSL is atechnology which enables very high speed transmission on copper wires, andis intended for very high speed residential Internet access multiplying thespeed of access up to 900 times.

Cisco also intends to incorporate private voice communications solutions fromAlcatel into the networking solutions Cisco offers to both <largeenterprises and small/medium businesses.

"Service providers worldwide recognize the attractive market opportunities forvoice-data and multimedia services," said John Chambers, president and CEOof Cisco. "Our partnership with Alcatel will allow service-providers todeploy advanced services more quickly and efficiently."

"Alcatel recognizes the fast-increasing importance of Internet protocols inpublic networks, and plans to implement them on Alcatel high-speedtelecommunications solutions such as ATM, ADSL and SDH/SONET, to offerscaleable, end-to-end solutions," said Jo Cornu, chief operating officer ofAlcatel.


Alcatel, part of Alcatel Alsthom Group (FF 162.1 billion revenues in 1996) is aworldwide company working in 130 countries on projects in thetelecommunications field. Alcatel manufactures advanced digital switches,transmission systems, broadband products, access products, radio mobilecommunications systems, business systems, systems and products for spaceand defense, and components. In 1996, these activities registered totalsales of FF 71 billion.

Cisco Systems

Cisco Systems, Inc. (NASDAQ: CSCO) is theworldwide leader in networking for the Internet. at

# # #

Cisco IOS is a trademark, and Cisco, Cisco Systems, and the Cisco Systems logo areregistered trademarks of Cisco Systems, Inc. in the U.S. and certain other countries. All othertrademarks mentioned in this document are the property of their respective owners.