News Release

IBM and Cisco launch e-business solutions for growing businesses

HONG KONG -- 19 January 2000 -- IBM China/HK Limited and
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Jan 19, 2000

HONG KONG -- 19 January 2000 -- IBM China/HK Limited and Cisco Systems today introduced self-contained networked business solutions for small-to-medium sized businesses (SMBs) in Hong Kong, providing high-performance local area networking capabilities and fast access to the Internet.

The solutions include a range of proven configurations that include Cisco's Catalyst 2924 and 3500 series switches and Cisco 1750 series routers, together with IBM's award-winning Netfinity line of servers. Pre-tested for compatibility and reliability, the solution bundles are designed to be affordable and easy to install and configure.

This combination of IBM Netfinity servers and Cisco's expandable network components also provides customers with a reliable networked foundation for conducting e-business, exchanging information and sharing resources. The scalable solutions allow customers to securely access information and resources on the Internet. Similar offerings are being successively introduced in other Asian locations, including Taiwan, Korea and China.

Annabella Yau, marketing manager of IBM's Personal Systems Group said, "IBM is committed to providing advanced, practical e-business solutions to Hong Kong SMBs to help them enhance competitiveness. I am confident that by combining our award-winning Netfinity servers with Cisco's leading-edge switches and routers, we will provide the best business values to our customers."

"Access to the Internet is today a matter of business survival for many companies that need reliable, fast communication between prospects, customers and suppliers," said Fredy Cheung, Asia Pacific director of Small/Medium Line of Business at Cisco Systems.

"SMBs, in particular, need no-fuss, easy-to-use products that can Internet-enable their business within the shortest amount of time. Scalability, performance and reliablity are the cornerstones of Cisco networking equipment, which when combined with IBM's proven line of Netfinity servers, offer an unbeatable option for SMBs in Hong Kong." The affordable Netfinity 3000 and 3500 servers deliver easy-to-use Internet and intranet solutions that help growing businesses to communicate quickly and effectively with customers and vendors, track projects and resolve problems. IBM Netfinity servers deliver the performance, reliability and investment protection necessary to meet customers' business-critical requirements.

The Cisco Systems Catalyst 3500 series is a scalable line of stackable 10/100 and Gigabit Ethernet switches that provide next-generation stackable switching integrated with voice and IP telephony support. It allows management of all Cisco switched ports from a single IP address and provides interconnected switches with an independent high-speed stacking bus that preserves valuable desktop ports.

The Catalyst 2924 10/100 autosensing Fast Ethernet switches are ideal for delivering dedicated 10 or 100 Megabit per second bandwidth to individual users and servers. Upgradable via software, investment is protected if the company's network grows or changes.

The Cisco 1750 modular access router delivers complete flexibility and investment protection for small branch offices and SMBs. A key member of Cisco's multiservice (voice, data and video) portfolio, the Cisco 1750 has a modular architecture that enables users to customize a secure access solution to suit their current requirements and cost-effectively implement multiservice voice/data integration, virtual private network access, and broadband services when needed.

The IBM and Cisco small business solutions bundle is pre-tested under the Netfinity ServerProven program so that customers receive smooth installation and reliable implementation. Netfinity ServerProven is a compatibility program that enables independent software and dardware vendors to pre-test their products for compatibility with IBM Netfinity servers.

IBM Netfinity products provides customers using industry-standard technologies with a reliable foundation for their networked businesses by delivering outstanding power, scalability, control and service. The IBM Netfinity family of products helps small, medium and large companies to manage their networked business systems - from file and print capabilities to the most advanced applications - virtually anytime, anywhere.

Software from industry-leading vendors such as Lotus, Novell, Microsoft, SCO, SAP, Oracle, JD Edwards and Baan are tested on IBM Netfinity systems so that customers are empowered to achieve their highest degree of productivity. The IBM/Cisco networked business solution package for SMBs is available today from authorised resellers in Hong Kong.

More information on the Cisco/IBM SMB solutions is available at http://www.cisco.com/hk/.

About IBM

IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. It played a leading role in driving the three computing "Waves". The first was mainframe computing. The second "Wave" marked the shift of power to the desktop through the development of the PC. IBM has fully embraced the "Third Wave" as an e-business company, connecting people through their computers to colleagues, customers, suppliers, government departments, and a huge virtual world of information, services and entertainment. IBM opened for business in Hong Kong on 16 April 1957, and has been providing IT solution to help Hong Kong's development since then.

About Cisco Systems

Cisco Systems, Inc. (NASDAQ: CSCO) is the worldwide leader in networking for the Internet. Cisco news and information are available at http://www.cisco.com.

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