TAIPEI, Taiwan -- 28 August 2001 -- China Airlines, the E-business pioneer in Taiwan's airline industry, announced today the deployment of wireless Internet services in its airline lounges in Taiwan and around the world. As the first Asian airline to join the Cisco Internet Mobile Office initiative, China Airlines has set another milestone in providing innovative and cutting-edge services to its customers.

Launched early this year in the Asia Pacific region, the Cisco Internet Mobile Office initiative seeks to provide mobile business professionals with secure, high-speed network access to the Internet and their corporate resources anytime, anywhere. By working with an ecosystem of technology, application and service providers and systems integrators, as well as forward-thinking venue operators such as China Airlines, Cisco Systems' vision is to enable easy, reliable, and secure access to the Internet – on the move, at home, or at work.

China Airlines will initially roll out the service in its VIP rooms at Chiang Kai-Shek Memorial International Airport and Kaohsiung International Airport by the end of September. Over time, China Airlines will work hand in hand with Cisco to extend the service to its VIP rooms in Tokyo, Fukuoka, Okinawa, Hong Kong, Bangkok, Kuala Lumpur, Singapore, Hawaii, Los Angeles, and San Francisco. This will extend the reach of the service to millions of passengers around the world.

"To be the leader in the Taiwan airline industry, we have to constantly extend the value and reach of our E-business infrastructure, incrementally raising the reputation of the company," said Christine Tsung, President of China Airlines. "According to a recent ranking of first-class cabins amongst the world's leading airlines, China Airlines was placed ninth. This reaffirms our strategy of continually increasing the level of our services and adding to the customer experience. The launch of the Cisco Internet Mobile Office in our VIP rooms is another example of our commitment to customer service."

"The Cisco Internet Mobile Office initiative aims to fulfill Cisco's vision of ubiquitous Internet access. This ties in perfectly with the trend toward mobile commerce," said Larry Sun, Country Manager of Cisco Systems Taiwan. "We are honored to be working with an industry leader such as China Airlines who have always demonstrated great leadership in innovative use of technology. By becoming a part of the Cisco Internet Mobile Office initiative, China Airlines strengthens its position as the E-business pioneer of the Taiwan airline industry."

"This agreement is indeed an important milestone for the Cisco Internet Mobile Office as it enables us to extend this service seamlessly throughout the world as we extend our cooperation with China Airlines in the major global airports," added Sun.

Cisco's authorized systems integrator Equant will carry out the installation of the networking equipment for the wireless Internet service, while the Internet service will be provided by Taiwan's Infoserve. Once completed, mobile professionals flying on China Airlines can wirelessly access the Internet and their corporate intranets via secure Virtual Private Network (VPN) on their notebook PCs, keeping them productive even on long business trips.

Infoserve, the first Cisco Internet Mobile Office ecosystem partner in Taiwan, will be launching its broadband wireless prepaid service isIMO (Infoserve Internet Mobile Office) soon and will provide global broadband roaming via iPass by the end of the year.

"Infoserve is proud to be the Internet service provider of choice to China Airlines and we are happy that they are becoming a part of the Cisco Internet Mobile Office initiative. There will be a lot of synergy for our mutual customers who will be able to enjoy the freedom of taking their office anywhere in the form of their notebook PC, and a Cisco Aironet Wireless LAN card," said Phil Tsai, Chairman & CEO of Infoserve Technology Corp.

Infoserve's service will initially be available at over ten public access locations, or 'hot spots', in Taiwan, mostly coffee shops such as BONCAFE, Caravali Collection, The Coffee Bean, Doutor Coffee, I`R CAFFE TRATTORIA; and hotels including Four Points Sheraton at Chung Ho, Taipei. There will be more than 100 Cisco Internet Mobile Office hot spots in Taiwan by the end of this year.

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.

# # #

Cisco, Cisco Systems and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. in the U.S. and other countries. All other trademarks mentioned in this document are the property of their respective owners.