News Release

Eastern Multimedia Group Deploys Cisco Systems Core Networking Equipment

Cisco Solution Will Enable Company to Deliver Next-Generation Telecommunications Services over a reliable, high-speed backbone
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Oct 31, 2000

TAIPEI, Taiwan -- 31 October 2000 -- As global telecommunications deregulation opens doors to communications services operated by cable television carriers, Taiwan has recently passed laws to allow for the cross-operation between television and communications businesses. Since then, Eastern Multimedia Group (EMG) has been working to transform itself from a cable television provider to a next-generation telecommunications service provider. In a major step in that transformation, EMG has announced plans to deploy the carrier-class 12000 Series Gigabit Switch Routers (GSRs) and Catalyst 6000 Series Switches from Cisco Systems, Inc., the worldwide leader in networking for the Internet, in order to implement mission-critical network backbones to meet the needs of cable TV subscribers for high-speed bi-directional broadband communications.

Combining EMG's existing broadband bi-directional Hybrid Fiber Coaxial (HFC) infrastructure with Cisco core networking equipment using Cisco's Dynamic Packet Transport (DPT) ring architecture, the new network will enable EMG to provide cable-TV subscribers with bi-directional high-speed image and data transport services. Users can request TV programs on demand or use the television set for making online financial transactions at home. Future applications will include electronic commerce, music on demand, Internet telephony, video conferencing, Internet games, Internet call centers and other value-added services. In addition, Cisco's solutions are equipped with QoS (Quality of Service) mechanisms to provide the best guarantee of transport quality for broadband services.

"The integration of cable television and telecommunications is a natural development following the global telecommunications deregulation trend," said Larry Sun, Country Manager of Cisco Systems Taiwan. "Through technologies and solutions such as the Cisco GSR 12000 and Catalyst 6000 Series products, Cisco has successfully assisted the implementation of carrier-class broadband services from mainstream cable-TV providers worldwide, such as MediaOne and Road Runner in the U.S., and South Korea's leading provider of high-speed Internet service over cable, Korea Thrunet. Since Cisco formed a strategic alliance with EMG in 1997, we have been providing them with necessary network technologies and expertise to build high-speed broadband networks. As EMG transitions into a next-generation telecommunications carrier, we are proud to be able to continue providing them with our professional technical consultation and networking expertise as well as our industry leading technologies."

"The cross-operation between cable television and telecommunications has made telecommunications services-on-cable one of the biggest opportunities in the IT industry," said Richard K.Y. Chen, General Manager of EMG. "With more than 70% households in Taiwan using cable television service, cable companies will certainly become the mainstream communications providers of the next generation. Because our existing ATM network architecture has not been able to meet the needs of the new telecommunications era, EMG has purchased Cisco's carrier-class high-end routers and switches in combination with Cisco's Dynamic Packet Transport ring architecture to enhance the overall backbone bandwidth. Combining Cisco's technologies with EMG's existing broadband network architecture and competitive advantages in television broadcasting and print and online media, we will be able to provide high-quality, cost-effective networks and carrier-class broadband services."

Cisco's Dynamic Packet Transport (DPT) technology can provide efficient IP transport on conventional technologies such as SONET/SDH. Integrating efficient bandwidth utilization and multi-service applications, DPT provides bandwidth enhancement and restorable features beyond conventional optical solutions.

Cisco 12000 Series offers optimized multicast, multimedia support, 80 Gbps data throughput scalable to 320 Gbps, as well as OC-48c/STM-16c and OC-192c/STM-64c wire speed to leverage the data throughput of optical cables, thus satisfying the rigorous demand for network bandwidth and providing high-availability network backbones for communications carriers. Catalyst 6000 Series provides superior expandability and performance, comprehensive interface support, high port density and wire-speed forwarding features in combination with intelligent applications, QoS mechanisms and network security to effectively enhance network performance and meeting increasing customer demands.

About Eastern Multimedia Group

Eastern Multimedia Group (EMG) founded Eastern Multimedia Corp. in July 1995 to lead the trend of media development and enter the cable television market. Successfully integrating more than a dozen systems operators throughout Taiwan and their 1.3 million subscribers, the company has become the largest multi-system operator (MSO) in Asia. Under a strategic alliance with Cisco Systems, EMG is now committed to the "ET Home" broadband development project. The company's investors include China Rebar Corp., Walsin Lihwa Corp., Fu Ban Group and Taiwan Secom Corp. etc. The total capital exceeds NT$15 billion.

About Cisco Systems

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

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