News Release

IXC and Cisco Announce Technology and Marketing Alliance

IXC Communications AUSTIN, Texas -- February 15, 1999 -- IXC
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Feb 15, 1999



AUSTIN, Texas -- February 15, 1999 -- IXC Communications, Inc. (Nasdaq: IIXC) and Cisco Systems, Inc. (Nasdaq: CSCO) today announced a technology and marketing alliance that will allow IXC to deploy emerging packet-based technologies utilizing Cisco's industry-leading internetworking solutions over IXC's nationwide fiber-optic network infrastructure.

IXC and Cisco will work together in areas of emerging Internet Protocol (IP) internetworking such as packet over SONET, product and service definition, and the marketing of products utilizing Cisco's JumpStart program. The initiative is part of IXC's commitment to provide IP-based solutions for small- and medium-size businesses. As a result of the relationship, IXC is deploying Cisco 12000 gigabit switch routers (GSRs) throughout its OC-48 advanced Internet-backbone network called Gemini2000. IXC is positioned to offer end-to-end, IP-based solutions all the way to the customer premise.

"Based on our commitment and decision to deploy Cisco's industry-leading routers throughout our IP backbone network, it was a natural step for IXC and Cisco to forge this agreement," said Mike Vent, president of IXC's network services.

By combining the experience and knowledge of both companies, the alliance offers the most innovative IP-based solutions available in the marketplace today. "This development effort will focus on New World products and services including MPLS throughout the backbone," said Kevin Kennedy, senior vice president of Cisco's Service Provider Line of Business. "They also include managed integrated services, IP-Virtual Private Networks, voice over IP, and H.323 packet video services."

IXC's integrated services approach enables its customers now and in the future to purchase data, Internet, video and voice communication services that traditionally were contracted from multiple providers. This integrated approach allows customers to purchase services individually or collectively from a single source and later upgrades without having to replace the equipment initially provisioned by IXC.

"IXC's commitment to provide affordable, flexible and scalable integrated services solutions to the small- to medium-size businesses is right in line with Cisco's commitment to expand our market presence in the this sector. Our relationship with IXC will allow Cisco to be part of this significant growth area," said Kennedy.

Alliance Fosters Customer Education

Another result of the alliance is that IXC plans to become a licensed Cisco Training Partner. This will enable the company to offer its business customers technical training services. In addition, IXC will provide its wholesale customers with bundled on-site training. In concert with its desire to educate end users, IXC is committed to deploying its own Cisco Certified Internetworking Expert (CCIE) preparatory lab. Planned for a northern Virginia location, the lab will provide IXC networking professionals with an opportunity to practice taking the CCIE Lab Exam for professional certification offered only by Cisco.

"We believe the training IXC provides its customers is a unique and invaluable supplement to the products and services we offer," said Dominick DeAngelo, IXC's senior vice president of data services. "IXC will offer Cisco Certified Training and access to its CCIE preparatory lab to other service providers and ISPs - something no other service supplier is providing."

About IXC Communications

IXC's network-based delivery solutions are designed to address the speed and capacity requirements of the global communications market. Having completed the first new coast-to-coast fiber optic network in the United States in more than a decade, IXC Communications, Inc. is at the forefront of the industry's new class of emerging domestic and international carriers. IXC offerings include private line, broadband, Internet and long distance switched and dedicated services. IXC is a publicly traded company listed on Nasdaq under the symbol IIXC.

Cisco Systems

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

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