News Release
May 21, 2001

Cisco and Microsoft Demonstrate Interoperability of Next-Generation Tunneling Protocol Implementations

Interoperability Marks Milestone of Future Standard for Virtual Private Networks
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REDMOND, Wash., May 21 -- Cisco Systems Inc. (NASDAQ:CSCO) and MicrosoftCorp. (Nasdaq: MSFT) last week demonstrated interoperability of their layer 2tunneling protocol (L2TP) implementations at the California ISDN Users Groupmeeting. L2TP is the emerging Internet Engineering Task Force (IETF) standardprotocol solution that allows users to create secure virtual private networks(VPNs) over public networks including the Internet.

Virtual private networks enable customers to use public networks such as theInternet to provide secure connection between remote users and their corporatenetworks without the expense of a dedicated private network. Cisco and Microsofthave been working with other industry leaders such as 3Com, Ascend and U.S.Robotics within the IETF to create the L2TP standard. Interoperability betweenthese industry leaders' technologies will offer customers choice and flexibilityin virtual private networking.

"Microsoft is committed to working with industry leaders such as Ciscoon the development of standards that will benefit our customers and theindustry," said Mike Nash, director of marketing for Windows NT Server andinfrastructure products at Microsoft. "Through these efforts, Microsoft can givecustomers greater freedom of choice as they use VPNs to lower the cost of remoteaccess while maintaining a high level of security."

Interoperability between Cisco's and Microsoft's L2TP implementationsdemonstrates the companies' commitment to the delivery of L2TP-based products inthe future. Cisco and Microsoft will continue to support their existing virtualprivate networking solutions, layer 2 forwarding (L2F) and point to pointtunneling protocol (PPTP), respectively, and to provide a smooth migration pathto L2TP. Therefore, customers can implement these virtual private networkingsolutions today with complete assurance that their investments will be preservedin the future when L2TP becomes available.

"Cisco is collaborating with Microsoft and other industry leaders toprovide an open, standard L2TP solution so that the entire industry wins," saidArt Feather, director of service provider marketing at Cisco Systems. "Theindustry benefits from a flexible combination of secure private Internettechnologies, and customers benefit by having a greater variety of platforms andsolutions."

Cisco plans to have L2TP available in version 11.3 of Cisco IOS(TM) softwareand Microsoft plans to include L2TP in version 5.0 of the Microsoft Windows NT(R)Server network operating system. Currently in its third draft, L2TP is expectedto reach RFC status later this year. The L2TP specification is available athttp://ds.internic.net/internet-drafts/draft-ietf-pppext-l2tp- 03.txt to anycompany wishing to implement tunneling within its products.

Microsoft

Founded in 1975, Microsoft is the worldwide leader in software for personalcomputers. The company offers a wide range of products and services for businessand personal use, each designed with the mission of making it easier and moreenjoyable for people to take advantage of the full power of personal computingevery day.

NOTE: Microsoft and Windows NT are either registered trademarks ortrademarks of Microsoft Corp. in the United States and/or other countries. CiscoIOS and Cisco Systems are trademarks and Cisco and the Cisco Systems Logo is aregistered trademark of Cisco Systems Inc. Other product and company namesmentioned herein may be trademarks of their respective owners.

NOTE TO EDITORS: If you are interested in viewing additional information onMicrosoft check out the Microsoft Web page at http://microsoft.com/corpinfo/ onMicrosoft's corporate information pages.

Cisco Systems

Cisco Systems, Inc. (NASDAQ: CSCO)is the worldwide leader in networking for the Internet. News and information areavailable at http://www.cisco.com.

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Cisco IOS is a trademark, and Cisco, Cisco Systems, and the Cisco Systemslogo are registered trademarks of Cisco Systems, Inc. in the U.S. and certainother countries. All other trademarks mentioned in this document are the propertyof their respective owners.