News Release

C1 Communications Collaborates with Cisco Systems to Become the First Company in Canada to Deploy DSL Nationally

Cisco DSL Solutions MISSISSAUGA, Saint John: -- October 14,
Oct 14, 1999

MISSISSAUGA, Saint John: -- October 14, 1999 -- C1 Communications, a next generation communications company, has teamed with Cisco Systems, the worldwide leader in networking for the Internet, to become the first company to provide DSL technology to customers across Canada.

"This is very exciting for C1 Communications and for our customers. We are a new company and we are very different from our competitors. Our focus at C1 is on providing fully-integrated communication products and services to enterprise customers to enable them to compete and grow their businesses successfully," said A.S. (Tony) Cassetta, President and Chief Operation Officer. "Our intent is to future-proof customers, by accelerating their transition to an Internet Protocol (IP) based platform and thereby effectively guaranteeing access to customized, innovative technology solutions. Our collaboration with Cisco to deliver end-to-end DSL networking solutions will position C1 to meet these customer needs."

Digital Subscriber Line (DSL) technology is one of the fastest growing developments for meeting high-bandwidth requirements for data, voice, and video integration. These technologies provide high-speed digital data transmission over copper telephone lines, allowing C1 Communications to offer economical and easy to implement managed data services, as well as integrated telephony services.

Under its agreement with Cisco, C1 Communications will broadly deploy an end-to-end DSL network with products including Cisco 6400 universal access concentrators, 6130 DSL access concentrators, and 600 series products throughout its core, central office and customer premise networks. C1 will be able to provide customers with a continuous connection to the Internet via their phone line without interrupting regular phone services. Also, multiple services, such as voice-over DSL may be run over the same line to offer increased value to customers.

C1 Communications will launch its DSL services this fall in eastern Canada, and will introduce it in the Greater Toronto Area in the first quarter of 2000. The company will market business applications directly and residential services on a wholesale basis.

"C1's strategic intent and national deployment plans, combined with our leadership in broadband networking and experience in the enterprise network equipment market, provides a significant opportunity for businesses across Canada," said David Gudmundson, vice president and general manager of the DSL and Systems Software Business Unit at Cisco. "By deploying Cisco DSL solutions, C1 can rapidly provision and scale their network to deliver a wide range of Internet and value-added services that are in high demand with their customers and create new revenue opportunities for themselves."

"The launch of DSL services and teaming with Cisco clearly puts C1 Communications ahead of its competition," said Cassetta. "We have listened to our customers who have told us what they need to prosper in a fiercely competitive marketplace. We have responded with aggressive plans to bring this technology to customers across Canada."

C1 Communications has in-place over $100 million of committed equity and debt capital to finance the first phase of its national rollout. Its equity sponsors include CWS and JAM, the two original founders of Fundy Communications, as well as Alta Communications, Charlesbank Capital Partners and NBIM, three sophisticated institutional investors with successful track records in the telecommunications sector.

C1 Communications is built on the solid foundation, financial strength and reputation of Fundy Communications of Saint John, New Brunswick. C1 delivers customized, tailored products that produce real value, measured in time, cost effective solutions and trouble free dependability. C1 is the perfect fit for today, and tomorrow's dynamic business enterprise customer.

Cisco Systems

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

# # #

Cisco, Cisco Systems and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. in the U.S. and certain other countries. All other trademarks mentioned in this document are the property of their respective owners.