HONG KONG, April 22, 2002 - Cisco Systems, the worldwide leader in networking for the Internet, announced that CPCNet Hong Kong, a CITIC Pacific (SEHK: 0267) company and one of the largest providers of IP-based solutions for businesses in Greater China, has chosen Cisco's MPLS (Multi-Protocol Label Switching) technology to implement its next-generation corporate private network solution TrueConnect.

TrueConnect is an MPLS-based Virtual Private Network (VPN) service providing companies with secure, direct high-performance links to locations across Greater China. Service coverage includes Hong Kong, Taiwan, Shanghai, Beijing, Shenzhen, Guangzhou, and Wuhan with extensions to be established to other cities and countries in the next few months.

Cisco has provided all of the networking components for implementing TrueConnect in Hong Kong. CPCNet's core IP network is based on Cisco's 12000 Series Internet Routers, which have been largely deployed for IP transport and provide extensive support for MPLS switching. The Cisco 12000 series delivers priority-based congestion control, dedicated low-latency queuing, and packet sequence integrity under all conditions required by premium services such as voice-over-IP and streaming media.

Other products deployed include Cisco 7400 Series Routers, the highest performance single-rack unit (RU) router on the market, and the Cisco Catalyst 6500 Series, the premier Wiring Closet solution based on Cisco Architecture of Voice, Video, and Integrated Data (AVVID).

"With superior MPLS technology, CPCNet's next generation corporate private network TrueConnect can fulfill its promise to provide top-notch, seamless value-added Internet solutions in Greater China," said Layton Lok, Vice President of CPCNet Hong Kong. "China's accession to the WTO will act as a powerful catalyst for both inbound and outbound business opportunities in China and by working closely with Cisco we aim to make TrueConnect the premier service for linking enterprises across China with the rest of the world."

Mr. Lok said that MPLS-based VPNs allow service providers, such as CPCNet, to serve a much more diverse base of medium-sized businesses because they reduce customer network complexity and costs. "Rather than setting up and managing individual point-to-point links between each location, businesses need only one simple connection and CPCNet takes care of the rest," he said.

Research firm The Yankee Group predicts that VPNs will be used by 70 percent of all companies for up to 90 percent of their data communications needs by 2004. It believes that this represents huge revenue opportunities for service providers.

For CPCNet, the technology also paves the way for a variety of additional value-added services such as voice and video conferencing.

"TrueConnect allows for advanced IP applications such as voice-over-IP and video conferencing, which are Cisco's area of expertise," said Lok.

CPCNet's introduction of TrueConnect follows the re-branding of the former PSINet Hong Kong into CPCNet Hong Kong, a wholly-owned subsidiary of CITIC Pacific Communications Limited, earlier this year. The re-branding signifies a direct alignment of CPCNet with CITIC Pacific's telecom portfolio, expanding CPCNet's IP network to improve Internet connectivity services and provisioning of value-added IP solutions for Greater China.

TrueConnect is central to CPCNet's "one-stop-shop" approach enabling it to deliver a hassle-free corporate private network solution. CPCNet takes care of the entire process from service consultation, order management, logistics, operations coordination, and equipment setup to 24x7 technical support, providing customer a fully managed corporate private network solution in the Greater China region.

"The rapid rise in the provision of IP services in Greater China brings Internet services providers not only numerous business opportunities, but also challenges of meeting customer demands while increasing profitability," said Frankie Sum, Managing Director of Cisco Systems Hong Kong. "With a six-year strong relationship, we are delighted to continuously present CPCNet Cisco's premier networking products and solutions, so that CPCNet can further enhance its competitive advantage and service differentiation."