News Release

Cisco Systems to Provide International IP Network for Carrier1

Carrier1 Web Site ZURICH, Switzerland -- August 7, 1998 --
Aug 07, 1998

ZURICH, Switzerland -- August 7, 1998 -- Cisco Systems has been awarded acontract to provide an international IP network to European-based Carrier1.Cisco will provide Carrier1 with a turnkey network solution, worth inexcess of US$5million. The new network will be ready to carry customertraffic from Sept. 1 and will span five European countries, with links tothe United States.

The deal involves the rollout of the first European IP backbone based on a155Mbps SDH ring. Carrier1 will utilize Cisco's latest backbone routinghardware and software to launch a wide range of services targeted atInternet Service Providers and other online service resellers. Cisco'sturnkey offering includes the installation, commissioning, design,management and operations for the network.

Stig Johansson, CEO of Carrier1 said: "This deal, combined with therollout of Cisco products into the backbone, allows Carrier1 to offerservices and service levels not seen before in Europe. In close cooperationwith Cisco, we have been able to progress from business plan and concept toa full network rollout in less than three months. The innovative design ofCisco's routing platform will enable Carrier1 to deliver services quicklyand cost-effectively to customers throughout Europe."

Carrier1 intends to introduce a suite of carrier services, includingwholesale voice and bandwidth connectivity, to customers such as fixed linesecond and third operators, GSM operators and multinational companiesrequiring wholesale bandwidth services.

Peter Lomas, Cisco's Vice President of Service Provider Operations forEurope, Middle East and Africa, adds: "Carrier1's decision to base itsbusiness on an IP-centric data network architecture is further evidence ofthe change that is starting to occur in Europe. More and more carriers nowbelieve that as data and voice continue to converge in the New World, IP isthe basis for building robust, scalable multiservice networks as a platformfor new and profitable services."

About Carrier1

Carrier1 is a new telecommunications carrier serving the rapidly growingmarket for wholesale long distance voice, IP, and data services to, from,via and within Europe. Carrier1's headquarters are in the heart of Europein Zurich, Switzerland, with offices in London, Frankfurt, Amsterdam andNew York.

Cisco Systems

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

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