News Release

BellSouth.net and Cisco Systems Team to Provide Business Internet/Intranet Dial Access Service

ATLANTA, GA -- February 23, 1998 -- BellSouth and Cisco
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Feb 23, 1998

ATLANTA, GA -- February 23, 1998 -- BellSouth and Cisco Systems, Inc. today announced an agreement that will deliver enhanced dial Internet and intranet access to corporate customers throughout the Southeast.

Under the agreement, BellSouth will use Cisco dial access servers in its BellSouth.net dialup network, and Cisco will market BellSouth.net virtual private dial network (VPDN) service to corporate customers. The one-year agreement is effective immediately.

BellSouth.net is deploying Cisco's AS5200 and AS5300 universal access servers and 30,000 Cisco dial ports to support the growing demand for Internet and intranet services from BellSouth, including analog dial access, higher-speed 56K modem support and ISDN connectivity. Cisco servers and ports will be deployed in BellSouth.net's dial network with 44 points of presence (POPs) in the nine-state Southeastern territory where BellSouth provides Internet and intranet services.

"The quality and efficiency of our network are critical to meeting the needs of our customers and our company," said John Stuhrenberg, vice president of business products for BellSouth.net Inc. "The Internet and intranets are a strategic part of BellSouth's service portfolio. Cisco's broad range of dial access solutions will enable us to deliver these services with superior quality while allowing us to scale effectively to meet a wider range of customer needs cost-effectively."

In 16 months, BellSouth has won more than 200,000 Internet service subscribers, meeting the access needs of small and large businesses and consumer customers. Recognized as having one of the most reliable networks in the industry, BellSouth plans to maintain its leadership position by delivering high-speed connectivity and outstanding quality of service with Cisco's hardware and software solutions, according to Stuhrenberg.

The agreement also calls for the companies to work together to deliver BellSouth.net VPDN solutions through their respective channels. The companies will establish Virtual Dial Centers of Excellence to showcase BellSouth.net VPDN service to their joint customers throughout the Southeast.

"Corporate customers are increasingly demanding high-performance, reliable dial access offerings," said Kevin Kennedy, vice president and general manager of the Network-to-User Business Unit at Cisco Systems. "Cisco's portfolio of dial access platforms enables BellSouth to provide these services, and it positions BellSouth to scale its services as customer bandwidth demands grow."

BellSouth.net VPDN service is a remote communications solution designed to support the computing needs of the telecommuter, roamer or remote office user. The service will provide seamless, private connectivity to corporate network resources by utilizing tunneling and public switched analog and ISDN access technologies. BellSouth.net VPDN service will include a wide range of security and network options, all available with one call to BellSouth.

Next-Generation Access Servers Give BellSouth.net Flexibility to Differentiate Services

With Cisco IOS® software as the common platform for delivery of advanced network services, the AS5200 and AS5300 integrate seamlessly into BellSouth.net's existing dial server pools, adding even more capacity and scalability. The Cisco AS5200 universal access server is the first in a series of universal access servers that deliver hybrid, asynchronous serial and ISDN line service to accommodate both mobile users and high-bandwidth dedicated telecommuters. The Cisco AS5300 supports near line-speed performance for up to 120 concurrent analog modem calls and ISDN B channels over a single, dial-in telephone number. New technologies are easily implemented via the versatile Modem ISDN Channel Aggregation (MICA) universal port engine domain specific part (DSP), which allows painless software upgrades to new technologies such as the emerging standard for 56K modem technology, ITU-T V.90. The Cisco AS5300 also provides complete, centrally managed modem capabilities-a key requirement for service providers building large dial-in pools-providing network managers with a single solution at a central management point. BellSouth.net is currently evaluating the carrier-class Cisco AS5800, a highly available and scalable solution for large dial POPs.

"The agreement with Cisco enables BellSouth to efficiently accommodate broad-based customers' needs in mixed-media environments," said Raymond Keneipp, principal analyst, Carrier Infrastructure Service at Current Analysis. "At the same time, Cisco is demonstrating a deep understanding of the business market by incorporating a reliable VPDN service into its offerings, thus extending its capabilities to serve its customers."

About BellSouth

BellSouth (NYSE: BLS) is a $20 billion communications services company. It provides telecommunications, wireless communications, directory advertising and publishing, and Internet and information services to more than 28 million customers in 20 countries worldwide. BellSouth's telecommunications operations provide service over one of the most advanced networks in the world for approximately 23 million access lines in its nine-state region that includes Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee. For more information on BellSouth.net Internet services, visit www.bellsouth.net or visit BellSouth Corporation's Web site at www.bellsouth.com.

Cisco Systems

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

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