SAN JOSE, Calif., March 12, 2002 - Cisco Systems, Inc. (NASDAQ: CSCO), the worldwide leader in networking for the Internet, announced that France Telecom (NYSE: FTE), through its Information Systems Division (ISD), is building a new IP VPN network based on Cisco's next generation Internet Routers to give customers enhanced network availability and performance. The MPLS-based IP VPN services are designed to connect France Telecom's 2,500 sites and increase bandwidth for the group's information network.

The network's implementation has helped France Telecom reduce network connection costs and better manage expenditures. The company aims to reduce costs over the next three years while increasing its broadband capabilities. France Telecom is also planning to consolidate its data centers from 50 to ten and regroup applications onto a single server type.

The new network, which provides continuously available broadband access, offers more flexibility to adapt to customer's evolving needs (e.g., relocation, reorganization, etc.), while helping them improve their reaction time to changes in their business or market. Additionally, the network can help customers combine and move all types of data flows (e.g., voice, data and video). As a result, new multimedia and Internet services can be implemented, including e-learning, video-conferencing (from a user's PC), and e.buro (an e-office application ) for telecommuting.

The services are deployed by France Telecom Transpac and supported by Equant (NYSE: ENT), a member of the France Telecom Group specializing in global IP and data services for multinational businesses. The deployment of the Equant IP VPN network at France Telecom will allow the group to offer improved service to its internal clients, as well as reinforce its know-how with large IP VPN networks currently managed for companies such as Sacem, Danone, Tyco Valves & Controls and Nouvelles Frontieres. The Equant IP VPN network has over 450 clients on 10,000 sites worldwide.

Cisco equipment used in the network include: Cisco 12000 Series Internet Routers to connect the data centers and Cisco 7200 and 7500 Series Routers to link the broadband points of access.