News Release

Cisco Announces IP+Optical Designation within the Cisco Powered Network Program

Cogent Becomes First Service Provider to Achieve IP+Optical Cisco Powered Network Status for its Nationwide Network
Apr 03, 2001

SAN JOSE, Calif., April 3, 2001 - Cisco Systems, Inc. (NASDAQ: CSCO), the worldwide leader in networking for the Internet, today announced a new IP+Optical designation within the Cisco Powered Network program for service provider customers that power transport and services networks with Cisco IP+Optical equipment. The program enables these highly select Cisco Powered Network service provider members to harness the power of Cisco's IP+Optical technology, use the existing Cisco Powered Network program resources, and capitalize on Cisco's leading-edge optical industry expertise and unparalleled market development resources to achieve sustained differentiation and growth in profitability.

Qualification for the IP+Optical Cisco Powered Network program is based upon meeting certain criteria, including building an end-to-end IP+Optical network powered by Cisco metro, service Point of Presence (PoP), and core IP+Optical platforms.

"Cisco developed the IP+Optical designation to directly address the needs of service providers that have put their confidence in Cisco to help them integrate IP and optical networking solutions," said Kevin Outcalt, Senior Director, Service Provider Marketing at Cisco Systems. "The IP+Optical designation identifies service providers who are prepared to meet growing bandwidth demands and who aim to quickly deploy high-quality, profitable services today and in the future."

Cogent Communications, a next-generation Internet service provider (ISP), is the firstto receive the IP+Optical Cisco Powered Network designation. Cogent has built a nationwide IP+Optical end-to-end network and offers its commercial user and service provider customer base unprecedented amounts of optical bandwidth for radically low, unmetered pricing levels. Cogent's national backbone is currently operational via two large interconnected Eastern and Western rings which connect 13 cities across the country. Cogent's flagship retail offering of 100Mbps of optical bandwidth and Internet connectivity for a flat monthly rate of $1000 is currently being provided in four metropolitan areas in the Eastern U.S., including New York, Washington, D.C., Philadelphia and Chicago and will be rolled out in 13 cities across the U.S. during the balance of 2001.

"We are extremely pleased by the demand our customers have demonstrated for Cogent services delivered on our own nationwide Cisco-based optical backbone with scalable OC-192 wavelengths. Customers recognize our Cisco Powered Network membership as a firm commitment to dependable, interoperable and reliable services," said Dave Schaeffer, CEO and Founder of Cogent Communications.

An end-to-end IP+Optical infrastructure combines the intelligence and flexibility of IP networking with the scale and economic efficiency of optical transport. The Cisco IP+Optical product portfolio includes the Cisco ONS 15000 series of optical products and the Cisco 12000 series Internet routers.

"The combination of IP and optical enables service providers to scale their networks and differentiate services based upon the volume and content of information, allowing them to more efficiently and profitably deliver the intelligent, high bandwidth services their customers want today," said Carl Russo, Group Vice President of Optical Networking at Cisco Systems.

Schaeffer continues, "An operational IP+Optical backbone infrastructure helps us accelerate service roll out. Cogent's time-to-market advantage is central to the ongoing execution of our business strategy to aggressively lower the cost of optical bandwidth and Internet connectivity to our customers. Successfully lighting our national backbone, which connects all of our metropolitan networks, enables us to efficiently meet our customer needs to scale capacity, reduce costs and realize the benefits of broadband applications that help their business."

Cisco established the Cisco Powered Network program in 1997 as a way for service providers to differentiate their services in an increasingly competitive marketplace. The program recognizes service providers who provision end-to-end services with Cisco equipment and is designed to help member companies develop and market high-quality services. Thus the Cisco Powered Network designation gives more confidence to the enterprise customers its members serve while at the same time creating greater business success for the service providers.

Cisco Powered Network members who qualify for the IP+Optical designation receive unique benefits in addition to those available through the Cisco Powered Network program. These designated Cisco Powered Network members also benefit from custom consulting, training, and co-marketing assistance for faster service turn-up and increased margin opportunities.

All Cisco Powered Network member service providers can utilize Cisco's brand and reputation, take advantage of a wide range of joint marketing and technology sharing activities, reduce marketing and sales costs, gain access to Cisco's customer base and benefit from numerous programs to improve network operations and security.