News Release

TeleMatrix Selects Cisco Systems to Offer Advanced VoIP Solutions

TeleMatrix Certified as a Cisco Powered Network Providing New World Services for Small and Medium-Sized Business Customers in Japan and throughout the World
Jan 27, 2000

SAN JOSE, Calif., Jan. 27, 2000 -Cisco Systems, Inc. (NASDAQ:CSCO), the worldwide leader in networking for the Internet, and TeleMatrix, Japan's leading independent IP telephony carrier and a pioneer in Voice-over-IP (VoIP), today announced that TeleMatrix has been certified as a new Cisco Powered Network. TeleMatrix will use Cisco's voice gateways and multiservice modular access routers to deliver reliable, secure, and high performance telephony services throughout Asia and the world.

The TeleMatrix network consists of more than 40 POPs (points-of-presence) throughout Japan, making it the largest distributed VoIP network in this burgeoning market. TeleMatrix provides telephone service and communication solutions for both consumer and small/medium business customers via an IP network. Working with Cisco, TeleMatrix will become a one-stop communications resource for business customers looking to take advantage of the substantial cost savings afforded by VoIP without the costs typically associated with private deployment.

Small and medium-sized businesses will also be able to leverage the extensive TeleMatrix network for enhanced services and call termination throughout Japan and the world. Under the new relationship, TeleMatrix will also use Cisco equipment and solutions from Cisco New World Ecosystem partners to provide prepaid calling and enhanced services to the consumer market in Japan.

Alistair Woodman, Director of Marketing for Packet Telephony at Cisco said, "We are pleased to work with TeleMatrix, a true IP telephony pioneer. We're especially excited about TeleMatrix's focus, as a new Cisco Powered Network, on the many small and medium-sized businesses throughout Japan and Asia who are in need of cost-effective termination of voice calls and value added telephony services.

"Cisco's industry-leading New World voice platforms afford us the opportunity to expand our network globally on a carrier scale, while being able to quickly offer interoperability and direct peering to other service providers and small and medium business customers," said Tetsuji Yamada, President of TeleMatrix. "By working with the recognized worldwide leader in networking, we can reassure our customers that the Internet and voice services we offer lead the industry in reliability, performance and innovation."

To earn the right to display the Cisco Powered Network mark, service providers must show that they offer among the highest levels of network quality and reliability. TeleMatrix's participation in the program - including the 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 brand recognition for TeleMatrix.