News Release

EDS and Cisco Form Alliance to Provide Mainframe-to-Web Integration

New EDS NetConnect(sm) offers seamless, end-to-end network services
Oct 06, 1997

PLANO, TX and SAN JOSE, CA - October 6, 1997 - EDS, a global leader in information services,and Cisco Systems, Inc., the worldwide leader in networking for the Internet, today announcedan alliance to provide companies with mainframe-to-Internet/intranet integration and seamlessnetworking services. EDS NetConnect, the alliance's initial service offering, aims to offercompanies easy access to their mainframe-based data and applications through Web browsers,enabling companies to preserve their investments in legacy systems.

Using the EDS NetConnect services, companies can replace traditional technology used to accessand transport mainframe-based data. The new technology combines traditional and InternetProtocol (IP) networks into a single network accessible by Web browsers. Web browsers can thenbecome the user interface for all corporate applications. This network integration allowscorporations to create their own Web-based intranets to provide employees, customers, suppliersand allies easy access to critical information. Existing mainframe-based applications remainintegral elements of the system, thus preserving a corporation's investment in mainframesoftware applications.

Implementing this new technology lays the foundation for large-scale electronic commerce andcreates the potential for a whole new generation of applications that may generate revenue,increase employee productivity, lower costs and improve customer satisfaction.

For example, a manufacturer can offer employees desktop access to customers' current orderstatus stored on the company's mainframe computer. A securities brokerage can deliver clientsthousands of online stock price quotes in a matter of moments. Or an electric utility can postonline, real-time energy prices from its mainframe that commercial customers can use tominimize their power costs.

Unlocking information in mainframes

"Our goal is to allow companies desktop access to the vast volumes of information now locked upin the mainframe without losing their legacy code investment," said EDS Vice Chairman GaryFernandes. "Cisco leads in network hardware and software, and EDS is the global leader ininformation technology services. We're coming together not only to lead the intelligent networkera, but to help shape mainframe-Internet integration in ways that give our clients ameasurable business advantage."

Fueled by demand for desktop access to data that now resides in some 30,000 mainframes aroundthe world, the revenue from Web-to-legacy products will reach $1 billion by 2000, according toInternational Data Corp.

"Our alliance recognizes that the real power in computing today lies in the network," saidCisco's President and CEO John Chambers. "Companies will gain competitive and strategicadvantage during the next quarter century if they can harness network technologies to lowertheir costs, hasten their product and service introduction and distribution, and improvecustomer service. We intend to be the leaders who help them do that."

The alliance's initial focus is on services that provide mainframe applications for theInternet and corporate intranets over (IP) networks and that upgrade clients' data networktechnology. Areas of planned future collaboration include electronic commerce andtelecommunications network offerings.

About EDS

EDS is a leader in the global information services industry. The company's approximately100,000 employees specialize in applying a range of ideas and technologies to help business andgovernment customers improve their economics, products, services and relationships. EDS, whichserves customers in 42 countries, reported revenues of $14.4 billion in 1996. The company isindependent and publicly owned, and its stock is traded on the New York Stock Exchange and theLondon Stock Exchange under the symbol EDS. EDS' WWW site ( features newsand information about the corporation.

Cisco Systems

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

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NetConnect is a service mark of Electronic Data Systems Corporation. 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.