News Release

Puget Sound Energy Selects U S WEST !NTERPRISE Networking To Upgrade, Expand And Modernize Data Network

Puget Sound Energy Selects U S WEST !NTERPRISE Networking To Upgrade, Expand And Modernize Data Network
Nov 10, 1997

DENVER, CO, November 10, 1997 U S WEST !NTERPRISE Networking,the data networking arm of U S WEST Communications (NYSE:USW), has beenselected by Puget Sound Energy to provide over $1 million in equipment andservices to assist in the upgrade, expansion and modernization of itslegacy data network.

Puget Sound Energy was formed in February of this year through the mergerof Puget Sound Power and Light and Washington Natural Gas. The mergerrequires the company to integrate its two independent data communicationsnetworks. Prior to the merger, Puget Sound Power and Light utilized aprivate point-to-point and multi-point data network, while WashingtonNatural Gas utilized a leased frame relay network. The merged company willmigrate to a frame relay network and switched environment and utilize asingle ATM that connects the company's three main facilities--corporateheadquarters in Bellevue and the Seattle and Redmond facilities.

U S WEST also was selected to assist in implementing and maintaining thenew expanded network design.

"Once the merger was complete, we knew one of our biggest challenges wouldbe to integrate our two data networks. U S WEST had a long-standingrelationship with Washington Natural Gas and helped with pre-mergercommunications. We knew from experience they would bring expertise to theproject," said John Mitchell, manager of Network and Desktop Services.

"U S WEST is proud to help Puget Sound Energy continue to provide itscustomers with the highest quality of service. Through upgrading their datanetwork to increase efficiency and performance, link all remote sites, andreduce cost of ownership, Puget Sound Energy will be able to better servetheir customers," said Joe Zell, president of U S WEST !NTERPRISENetworking.

U S WEST will deploy an end-to-end Cisco networking solution, includingCisco high performance 7500 Series routers and Cisco Catalyst LAN switches,which will belinked together with Cisco's industry-leading IOS software tohandle Puget Sound Energy's data network. Customer billing, engineering,call centers, and install and repair requests are all tied to the newnetwork. Cisco hardware will also be used for Puget Sound Energy's Internetcommunications providing e-mail and secure Internet access to any futurebusiness partners. U S WEST will stage, test and configure all hardware inits Seattle facility and install all equipment by mid-1998. Over 65 PugetSound Energy remote sites will be linked through the network.

"Data communications hardware and related support services such asinstallation, maintenance and managed data services are importantcomponents of U S WEST's value proposition we offer our customers," saidCynthia York, director for data network CPE, U S WEST !NTERPRISENetworking. "Through aggressive pricing, we were able to offer Puget SoundEnergy the services they required at an attractive price."

About Puget Sound Energy

Puget Sound Energy (NYSE: PSD) provides electric and natural gas service toapproximately 2.3 million people in the state of Washington. Its serviceterritory includes eleven counties bordering the Puget Sound in westernWashington, and part of Kittitas County in central Washington, just east ofthe Cascade Range.

About U S WEST !NTERPRISE Networking

U S WEST !NTERPRISE Networking was created by U S WEST Communications(NYSE:USW) in 1992 to address the advanced data networking needs of itscustomers. The !NTERPRISE family of high-speed data communications servicesincludes Frame Relay Service (both Metropolitan Area Networks and InterLATAout-of-region); Asynchronous Transfer Mode (ATM) Service; Transparent LANService (TLS); Private Line LAN Interconnect; the newly announced DSLportfolio; Managed Data Services (MDS); Integrated Services Digital Network(ISDN); and !NTERACT, the Internet-based portfolio of networking servicesdesigned to facilitate business Intranets via services such as: Internetaccess, Web hosting, collaborative computing, and !PS.

Cisco Systems

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

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