News Release

VersaTel Telecom International N.V. and Cisco Work Together to Offer End-to-End Networking Solutions

Cisco Powered Network to Deliver Advanced Networking
Apr 20, 1999

Cisco Powered Network to Deliver Advanced Networking Services to Customers in Western Europe

AMSTERDAM, Netherlands -- April 20, 1999 -- VersaTel Telecom International N.V. and Cisco Systems, Inc. today announced that they are combining efforts to offer dedicated Internet access, Frame Relay, ATM , LAN Interconnect, Virtual Private Network Services and Multi-service networking, to business customers in The Benelux.

With a Cisco Powered Network, VersaTel offers customers reliable, secure and high-performance datacommunication and Internet services. The relationship highlights VersaTel's and Cisco's focus on using intelligent broadband IP networking to deliver enhanced connectivity and network-based applications.

"Cisco shares our vision that IP network technology is becoming the foundation for delivering intelligent business solutions, providing our customers with strategic competitive advantages," said Larry Hendrickson Chief Technical Officer of VersaTel. "By working with a leader such as Cisco, we can bring advanced, differentiated networking solutions to market quickly."

To achieve high value solutions, VersaTel are using Cisco routers, MGX Frame Relay switches and the IGX/BPX ATM switches.

"Cisco's high-performance, reliable networking solutions enable service providers to offer consistent services for both the retail and wholesale market," said Paul Mountford, vice president of Cisco's Service Provider Line of Business in Europe, Middle East & Africa. "VersaTel's relationship with Cisco will enable VersaTel customers to be confident that their service provider will deliver a high level of network interoperability and performance, as well as new, advanced, and differentiated services."

"This is another important step in moving from a telecommunications company to a multimedia service provider, "said Gary Mesch, President and CEO VersaTel " Our core Internet products are selling well and with Cisco in position we can respond to the future demands for high-speed, high-bandwidth network solutions."

In the Cisco Powered Network Program, VersaTel will provide services based predominantly on Cisco equipment and software. VersaTel's participation in the program - including use of the Cisco Powered Network logo to brand its services and marketing support materials - demonstrates VersaTel's ability to provide innovative services and industry-leading technology solutions.

About VersaTel

VersaTel Telecom International NV is a leading Benelux telecommunications company based in Amsterdam. VersaTel's vision is to become the leading provider of facilities-based telecommunications services for businesses in the densely populated, high-income Benelux countries of Holland, Belgium and Luxembourg. Founded in October 1995, the Company holds full telecommunications licenses covering its service areas and has nearly 7,000 business customers and 300 employees. VersaTel currently is building a world-class data and multimedia network to provide wholesale enterprises with broadband network services and to provide small and medium-sized subscribers in 20 Benelux cities with communications services equal to those enjoyed by large corporations.

Cisco Systems

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

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