HONG KONG, 7 December 1999 - Creating one of the largest high tech equipment financing arrangements of its kind in Asia, Cisco Systems Capital Corporation (CSC) and Hewlett-Packard Technology Finance (HPTF) announced today that they will jointly provide a U.S. $50M financing plan for Dacom, a major telecommunication provider in Korea. Under terms of the agreement, CSC and HPTF will offer a U.S. $50M operating lease line available for staged draw down over the next two years.
The financing plan for Cisco equipment is divided into several phases and includes options for Dacom to migrate to future technologies later, thus reducing the total cost of ownership.
Mike Hampton, worldwide general manager, CSC, said, "As technology demands increase, so does the need for creative and flexible financing to meet those needs. By developing relationships with partners like HP Technology Finance, we are able to provide our customers the financial solutions they need to compete in the new Internet economy."
Daniel Brotman, senior manager for CSC in Asia-Pacific and Japan, said, "This is certainly the largest networking equipment lease ever structured in Asia, and perhaps the largest true operating lease in any segment of the Asia infotech market. With the rapid developments in technology, particularly in data networking, many customers like Dacom that want to stay on the cutting edge of technology appreciate the added flexibility that an operating lease offers."
Colin Byron, general manager of HPTF, Asia-Pacific said: "HP's ability to finance Cisco's equipment reflects our flexibility to offer true multi-vendor IT project finance to support Dacom's total infocom and financial needs. It also represents a significant milestone in the HPTF-CSC partnership to provide a one-stop financing service to our customers in Asia."
Cisco Systems Capital Corporation (CSC), a wholly owned subsidiary of Cisco Systems, Inc., provides a selection of highly competitive financing solutions that are both flexible and easy to use. Its objective is to provide Cisco customers with the opportunity to reduce the overall cost of acquisition, management, and end-of-life disposal of networking and telecommunications products, while providing a flexible transition to technology that improves productivity. More information about CSC is available at www.cisco.com/warp/public/csc/.
HP Technology Finance provides financial and asset management services to help customers maximize their information technology resources. HP's services include equipment acquisition, tracking, upgrades and disposition. As one of the largest computer lessors in the world, HP Technology Finance holds $5 billion in assets and finances HP and multi-vendor computer equipment for more than 60 of the Fortune 100 companies. HP Technology Finance was established in 1982 and provides services to customers in 103 countries.
Additional information on HP Technology Finance can be found on the World Wide Web at www.asiapac.hp.com/finance.
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