News Release

Qwest and Cisco Announce Strategic Alliance

Multimedia Communications Company Teams with Cisco to Build the Next Generation of High-Speed Voice/Data Networks
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Sep 30, 1997


SAN JOSE, Calif. -- September 30, 1997 -- Cisco Systems, Inc. and Qwest CommunicationsInternational, Inc. today announced a strategic alliance to build broadband business multimediaservices. Through the alliance, Qwest and Cisco will build the most advanced broadband nativeInternet Protocol (IP) network capable of delivering telephony, fax, videoconferencing,whiteboarding, multicasting, and other multimedia applications.

Cisco also announced Qwest's deployment of Cisco's top-of-the-line gigabit switch routers, theCisco 12000 Series, initially at OC-12 (622 Mbps) rates, into Qwest's OC-192 (9.6 Gbps) SONETnetwork. Deployment has begun on Qwest's currently active network between Los Angeles, SanFrancisco and Denver and will continue as the rest of the network is activated.

Cisco and Qwest will jointly define and test new products that would expand Cisco's offeringsinto the next generation of voice/data/video central office (CO). These new "IP-based" COswill be an integral part of Qwest's Terabit Points of Presence (TeraPOP) Internet network.Initial collaboration is currently scheduled to include voice gateways, provisioning andinterfaces to applications such as customer care, billing and status monitoring.

With the demand for high-bandwidth Internet applications such as telephony and videoconferencing, per capita consumption of bandwidth is doubling every year in the United States.Industry estimates suggest that Internet traffic is growing at an annual rate of 300 percent,and the number of Web servers is growing at a rate of 2,400 percent each year. This rapidgrowth is forcing current providers of network services to rethink the performance, capacityand configuration requirements for the COs of the future.

"Selecting the world leader in networking for the Internet allows us to pioneer the explodingmarket for multimedia communication," said Joseph P. Nacchio, president and CEO of Qwest. Inthis new era in networking, Qwest will be replacing today's disjointed offerings for telephony,data and video with a single network. Working with Cisco will enhance our leading-edgeposition in the industry through the introduction of IP telephony, visual communication andother IP services over our advanced technology network."

According to John Chambers, president and CEO of Cisco, "Our alliance with Qwest will positionCisco as a key provider of the next generation of the central office in the new era of IPtelephony. As Qwest develops its network, Cisco will be there with the products to support itsgrowth."

Network Capacity Provides New Platform for Services

"Qwest's network with its capacity will provide the platform to accelerate the long-awaitedworld of broadband multimedia services," said Dr. Nayel Shafei, Qwest executive vice presidentof product development. With Cisco's continuous development to handle higher optical carrierrates, it is the perfect company to enable Qwest to take full advantage of this unmatchedcapacity," he added.

Dr. Shafei explained that Qwest's network starts with 48 fibers (with the capability toquadruple the number through additional in-place conduits), bidirectional, line switchingOC-192 ring SONET nationwide network. Each fiber can carry 8 to 16 wave division multiplexing(WDM) windows, where each WDM window has a bandwidth of 10 gigabits per second, providing Qwestwith the potential of a multiterabit-per-second capability. When Qwest's network reaches itsfullest capacity, trillions of bits per second, it could transmit the entire contents of theLibrary of Congress coast to coast in 20 seconds.

Performing Internet routing and switching at gigabit speeds, Cisco's new 12000 series is thefirst in a new product class of gigabit switch routers. The Cisco 12000 series providesscalable IP forwarding and services performance in a carrier-class platform, enablinghigh-speed IP backbones to scale to OC-12, OC-48 (2.4 Gbps) and, in the future, OC-192.

"Qwest's cooperation with Cisco will enable us in developing the next generation of gigabit andterabit routers, as well as voice gateways, said Don Listwin, senior vice president, of Cisco'sService Provider Line of Business. The cooperation will include product definition and testingthe new products on Qwest's advanced network."

About Qwest

Qwest Communications International, Inc. (NASDAQ: QWST) is a rapidly growing multimediacommunications company building a high-capacity, fiber-optic network for the 21st century. Qwest's 16,000-mile domestic network, connecting 125 cities, will be complete by the secondquarter of 1999. Qwest is also extending the network 1,400 miles into Mexico, with completionslated for the third quarter of 1998. Through its cutting-edge technology, Qwest will deliverhigh-quality voice, data and video connectivity securely and reliably to businesses, consumersand other communications service providers. Further information is available on the company'sWeb site at http://www.qwest.net.

Cisco Systems

Cisco Systems, Inc. (NASDAQ: CSCO) is theworldwide leader in networking for the Internet. athttp://www.cisco.com.

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