HONG KONG -- 8 March 2001 -- In a major investment in the SAR (Special Administrative Region), Cisco Systems, the worldwide leader in networking for the Internet, has established a 5,000 square foot service logistic centre to speed the delivery of spares and key supplies for equipment installed in many of Hong Kong's largest Internet and telecommunications networks.

The new service logistic centre, operational from mid-February, will stock parts and supplies for use in Cisco's more than 3,000 products, allowing many to be sourced and delivered to clients throughout the territory in less than twenty-four hours - eliminating the need for special shipments from the United States.

Networking equipment from Cisco Systems is used in almost all of Hong Kong Internet Service Providers (ISPs) and telcommunications firms, with many of the largest companies in the SAR basing their core network infrastructure on Cisco equipment. Some of these --- such as those in banking, aviation and utility industries --- are required to operate 24 hours a day, seven days per week for mission-critical applications.

"The new service logistic centre will ensure that critical supplies can be more quickly made available to Cisco's system integrator partners and their customers, ensuring that they get maximum uptime for their networks," said Owen Chan, Vice President Asia-Pacific and Japan for the Cisco Customer Advocacy Organisation, the unit responsible for the Service and support business.

Mr Chan said that with so many organisations in Hong Kong relying on Cisco it had become essential that the company established such a centre locally. "The service logistic centre also greatly helps our system integrator partners by reducing the time and costs associated with logistic international freight, export duties and inventory costs," he said.

Cisco's new service logistic centre, located in Tsuen Wan, joins existing ones that have been established elsewhere in the region including Australia, China, Japan, South Korea and Singapore.

"With many Cisco networks in place, services have become an important part of the company's business and the service logistic centre is among in a series of initiatives designed to bolster the company's capabilities in this field. Over the next few months a number of other initiatives will be announced by the Customer Advocacy Organisation," he said.

Among Cisco's largest customers in Hong Kong are the HKSAR Government, the Bank of China, Cathay Pacific Airways, the Mass Transit Railway Corporation (MTR), PCCW-HKT and CTI.

"The setting up of the New Hong Kong service logistic centre, managed by an Automatic Inventory Management system, will greatly enhance customer satisfaction which is a key measurement of success within Cisco," said Mr Chan.

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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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