Optel Joins Select Group of Carriers to Hold Cisco Powered Network Designation

TORONTO, ON - July 16, 1999 - Optel Communications Corporation, a leading provider of alternative local and long distance telephone services, today announced that it has earned the prestigious Cisco Powered Network (CPN) designation from Cisco Systems, Inc., a worldwide leader in networking for the Internet.

This achievement puts Optel in a select group of carriers to be awarded the designation and acknowledges Optel's expertise and ability to deliver the highest-quality, end-to-end solutions through the use of Cisco products in its nationwide Internet network.

Under the program, the two companies are teaming to offer reliable, secure and high-performance Internet services. The relationship highlights Optel's and Cisco's focus on delivering a broad portfolio of services to all market segments over a single, common network architecture.

With a Cisco Powered Network, Optel's customers know that they will receive the high-performance network services that lead the industry in reliability and security.

"Partnering with Cisco enables Optel to offer DSL wholesale customers a reliable and leading-edge technology platform - combined with the competitive pricing that's become synonymous with Optel," said Bill Young, president and CEO, Optel Communications. "Cisco, and our other partners, will ensure the technology excellence behind our data services - while Optel focuses on offering a first-rate competitive value in our packaging and pricing."

Optel plans to be the first Canadian CLEC (Competitive Local Exchange Carrier) to offer wholesale DSL services. In September, Optel will launch a range of wholesale packages and pricing targeted to Internet Service Providers (ISPs) featuring up to seven megs DSL access speeds at a fraction of the cost of traditional high speed dedicated bandwidth services. In addition to increased affordability and packaging options, Optel's services will also enable ISPs to self-brand their DSL services for the first time.

"We believe that Optel's solution demonstrates a new communications infrastructure, based on Internet technology and comprised of a variety of services that appeal to a customer's current needs and future desires," said Araldo Menegon, director, Canadian service provider operations, Cisco Systems Canada Co. "Optel's relationship with Cisco communicates confidence to Optel's customers that their service provider will deliver a high performance network solution that is reliable, secure and responsive to their business needs."

In the Cisco-Powered Network Program, Optel will market services, based predominantly on Cisco equipment and software. Optel's participation in the program > including use of the Cisco-Powered Network logo to brand its services and marketing support materials > is designed to demonstrate its ability to provide innovative services, increase customer confidence and heighten Optel's brand recognition.

About Optel

Optel Communications Corporation, is one of Canada's largest alternative local line telephone companies. Since 1995, Optel has provided significant cost savings to small and medium-sized businesses on local and long distance phone services. Optel has announced plans to launch proprietary Competitive Local Exchange Carrier (CLEC) networks in Toronto and Montreal in 1999. A Canadian-controlled private company, Optel has offices and an established agent network in Ontario and Quebec. For additional information visit http://www.optel.ca.

About Cisco Systems Canada Co.

Cisco Systems Inc., the worldwide leader in networking for the Internet. Cisco is a multinational corporation with more than $10 billion (U.S.) in annual revenues and more than 19,000 employees worldwide. Cisco Systems Canada Co. (formerly Cisco Systems Canada Ltd.) was established by Cisco Systems in 1990. Headquartered in Toronto, Ontario, the company has more than 300 employees in Canada with regional sales and services offices in Dartmouth, NS; Moncton, NB; Quebec City, PQ; Montreal, PQ; Ottawa, ON; London, ON; Winnipeg, MB; Calgary, AB; Edmonton, AB; and Vancouver, BC. Cisco Systems also owns a world class research facility, in Kanata, ON.

Cisco produces networking solutions for enterprise organizations, service providers and small/medium businesses. Virtually all Internet traffic travels across Cisco equipment. Cisco also uses the Internet to conduct a substantial amount of its own business. The company provides more than 70 per cent of its customer support over the Internet. Cisco products handled over the Internet have now surpassed the $8 billion (U.S.) mark, making it the world's largest Internet commerce company.