TORONTO, ON - April 11, 2000 - Cisco Systems Canada today announced Internet Protocol-based voice solutions for the Canadian enterprise market. The company introduced a second generation of Internet Protocol Phones, Call Processing and integrated telephony functionality. Cisco also announced a third party research study validating the cost effectiveness and flexibility of replacing traditional PBX and Centrex systems with a new generation of Internet phones. Companies stand to save hundreds of thousands of dollars by integrating their voice traffic into their data network, avoiding the expense and complexity of operating two separate networks, as most businesses do today.

The research study, conducted by the Telecom Applications Research Alliance, indicates the use of Voice over Internet Protocol (VoIP) could yield potential savings of up to 35%, versus traditional Centrex or PBX systems. (See "Breakthrough Canadian Study Identifies Significant Cost Savings Achieved with Internet Telephony", April 11, 2000).

To date, Cisco has deployed over 50,000 IP phones globally, including all phone users in the Toronto-based Canadian headquarters, which migrated to IP in December 1999.

Cisco announced a total of ten products as part of the second generation of AVVID (Architecture for Voice, video and Integrated Data) solutions for Internet Telephony. This announcement bolsters Cisco's industry leading enterprise IP telephony line-up by increasing scalability, availability and intelligence, resulting in greater productivity for an organization.

Layered on top of the AVVID architecture is a series of business applications such as desktop videoconferencing, unified messaging and integrated call centres which further reinforce the business benefit of Internet telephony by leveraging a converged network of voice, video and data to implement productivity-enhancing business tools. (See "Cisco Delivers Scalable and Highly Available Enterprise IP Telephony Solutions", March 27, 2000).

In addition, Cisco and KPMG have announced the installation of 350 IP phones in KPMG's Consulting Practice, based in Toronto. IP phones will be installed in all employees' offices, as well as in the mailroom, meeting rooms and for all courtesy phones. Also, KPMG Consulting will extend their IP Telephony network to connect with its six Internet Broadband Solution Centres located around the world. (See "KPMG Consulting to Implement Cisco IP Telephony", April 11, 2000).

About Cisco Systems Canada Co.

Cisco Systems - with $12 billion (US) in revenues and over 19,000 employees - is the worldwide leader in networking for the Internet. Established in 1990, Cisco Systems Canada employs over 500 Canadians and is headquartered in Toronto, with field sales and service offices across the country. In addition, Cisco also has a state-of-the-art development centre in Kanata, ON - focusing on the development of optical Internetworking solutions to build the next generation of the Internet backbone.

The Internet is changing the way people work, live, learn and play - and Cisco Systems Canada is a primary agent of this change and a compelling example of the power of this revolution. By widely deploying business solutions based on the Internet, Cisco Systems saves over $825 million (US) per year in operating costs, has grown revenues by 100% in two years and has increased customer satisfaction at the same time. Cisco produces networking solutions for enterprise organizations, service providers and small/emerging businesses.

For additional information:

• Willa Black
  Cisco Systems Canada Co.
  (416) 216-8732
  Pager: 1-800-68-CISCO
  E-mail: wblack@cisco.com

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