News Release

Cisco Systems to be Key Supplier for Building China's Nation-Wide IP Backbone

Ministry of Information Industry Awards Over US$11M Worth of
Oct 14, 1998

Ministry of Information Industry Awards Over US$11M Worth of Contracts to Internetworking Leader

BEIJING, China -- October 14, 1998 -- Cisco Systems, the worldwide leader in networking for the Internet, announced today that it has been selected by China Telecom to be the strategic supplier of the countrywide backbones for ChinaNet and the China Multimedia Service Network.

Worth over US$11 million, the deal includes six Cisco 12000 series GigabitSwitch Routers and nearly 100 Cisco 7500 series routers, deployed across what is essentially the pan-China IP backbone. ChinaNet, managed by the national carrier China Telecom, currently supports more than 50 percent of China's Internet customers - roughly 600,000 users, including corporate accounts and private dial-up customers. The China Multimedia Service Network is a new nation-wide network backbone that will support a range of domestic information services and advanced multimedia applications such as video-on-demand and distance learning. When completed, it will be one of the largest multiservice networks in the world.

"These are two very strategic wins for Cisco because ChinaNet and the ChinaMultimedia Service Network backbones represent a substantial proportion of the Internet infrastructure in China," said Bill Nuti, President, Greater Asia forCisco Systems.

China Telecom began expanding its backbone network in late 1995 by deploying an array of Cisco 7000 and 4500 series routers. Thirty provinces then began developing their own provincial ChinaNet backbones. The current ChinaNet backbone upgrade program was initiated at the beginning of this year. Following the implementation of new capabilities at the national level, each province in China will begin building up their own local backbone networks.

"Thirty-one provinces also plan to build up their own province-wide multimedianetworks," said Nuti. "When these local level multimedia backbones arecommissioned, it will open up a range of new capabilities and businessopportunities, placing China's urban and provincial communities at theforefront of the information age."

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