News Release

Cisco and Japan Telecom Team Again to Offer Advanced Services

Cisco Enables First Offering of Frame Relay-to-ATM Interworking Service in Japan
Jun 30, 1997

SAN JOSE, Calif. -- June 30, 1997 -- Japan Telecom Co. Inc. and Cisco Systems, Inc. todayannounced the start of trials for the carrier's new Frame Relay-to-Asynchronous Transfer Mode(ATM) interworking service. The new service, FR/ATM INTERWORK, is the first of its kind inJapan and enables Frame Relay and ATM networks to communicate and operate seamlessly.

Japan Telecom's implementation of Frame Relay-to-ATM interworking is targeted at largeorganizations with numerous branch sites. With the increasing demand for wide-area LANinterconnection and transport of delay-sensitive data applications, customers are looking forhigher-performance network services to support business growth objectives. With FR/ATMINTERWORK, users will have the flexibility to deploy ATM at central sites and Frame Relay atremote sites, and will retain the ability for these sites to communicate seamlessly. Theresulting benefits are improved user performance, the ability to handle multimedia traffic, andlarge cost savings.

Customers Enjoy Large Cost Savings

Japan's Ministry of International Trade and Industry (MITI) recently began testing thecarrier's new Frame Relay-to-ATM interworking service. The Bureau has three main sites thatare connected via ATM. Frame Relay-to-ATM connections exist between these three main sites andten branch sites using Frame Relay, extending high performance and interoperability throughoutthe Bureau's network. Through interconnection of its Frame Relay and ATM networks, the Bureauestimates it has achieved cost savings of up to 30%. Another Japan Telecom customer, anacademic institute in Japan, has three major sites and 11 branch sites. It has also deployedATM-to-ATM connections between the three major sites, and Frame Relay-to-ATM connectionsbetween the major sites and the branch sites. Through interconnection of its Frame Relay andATM networks, the institute estimates that it has achieved cost savings of up to 25 percent.

Advanced Traffic Management and Multiservice Capabilities Key In Enabling Services

Cisco's standards-compliant, carrier-class StrataCom(TM) BPX(TM) ATM switches have been key inenabling Japan Telecom to rapidly deploy new services while continuing to maximize existingnetwork infrastructures. Japan Telecom first deployed BPX switches in its network in 1993 forthe country's first commercial Frame Relay service. With the explosive increase in Frame Relaytraffic on Japan Telecom's network, the carrier found the BPXs to be extremely flexible andscalable. This flexibility, along with the BPX's unparalleled reliability and 99.999 percentuptime, has enabled Japan Telecom to move all of its ATM traffic onto the Cisco ATM platform.

The BPX switches, which are the industry's first to be fully compliant with the ATM Forum'sTraffic Management Specification 4.0, have also enabled Japan Telecom to become the firstcarrier to offer commercial Available Bit Rate (ABR) as well as low-speed (T1/E1) ATM servicesin Japan. ABR is a new class of ATM service that guarantees customers agreed-upon levels ofnetwork capacity and allows customers to access extra network capacity when available. JapanTelecom is also providing Constant Bit Rate (CBR) and Variable Bit Rate (VBR) ATM services tocustomers.

Cisco's Continued Commitment to Japan

Cisco and 13 leading Japanese electronic and telecommunications corporations formed a jointventure in November 1994. Japanese participants in the joint venture are electronics vendorsFujitsu, Hitachi, Mitsubishi Electric, NEC, OKI, Toshiba and Compaq K.K; system integratorsCSK, Fujitsu FIP and NTT Data; content provider Sega Enterprises; and distributors ItochuTechno-Science, NetOne Systems and Softbank. According to Yano Market Research, Cisco is themarket share leader in Japan with over 80% of the router market.

About Japan Telecom

Ranked as the number one carrier in Japan, Japan Telecom is a leader in providing advancedservices. The carrier was the first to offer domestic Frame Relay services in Japan in 1993.

Cisco Systems

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

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