AMSTERDAM, Netherlands - May 21, 2002 - Cisco Systems, the worldwide leader in networking for the Internet, announced that it is supplying MPLS VPN solutions to leading Netherlands-based service provider, KPN. The MPLS VPN, a Cisco Powered Network service, will help KPN provide a flexible, always-on broadband access service for Dutch enterprises. The Cisco 10000 series Internet Routers will aggregate a range of broadband access technologies from leased lines and DSL through to dial up and GPRS.

Under the name Epacity, KPN gradually launches the IP-VPN services with MPLS technology that help provide enterprises and application and internet service providers with a secure, reliable, flexible and high standard of connectivity. Epacity is also integrated with KPMG Consulting, Inc.'s (NASDAQ:KCIN) Configure to Fit. (CTF) Business Support Systems/Operations Support System (BSS/OSS) Architecture concept, customized for KPN's selected applications and specific business processes to provide web enabled, end-to-end flow-through order to provisioning IP-VPN solutions. KPN already offers the Epacity service to xSP customers.

"Cisco's MPLS technology solves the scalability and manageability problem of multiple, large-scale IP-VPNs and helps provide us with the ability to offer broadband services to our customers complete with Quality of Service characteristics", said Huub Zabel, manager, Epacity Solutions at KPN. "Cisco's understanding of enterprise requirements as well as its leadership in IP solutions has been fundamental to the success of our relationship."

KPN chose Cisco's 10000 series platform for its IP-VPN offering. This platform connects to KPN's existing MPLS-enabled backbone, which is based on the Cisco 12000 Series Internet Router. MPLS VPN support on the Cisco 10000 Series Internet Router will help KPN provide scalable any-to-any connectivity for extended intranets and extranets that encompass multiple businesses and users.

"Enterprises are increasingly facing the dual challenge of investing in their network infrastructure whilst needing to focus on their core business," Edzard Overbeek, general manager, Cisco Systems the Netherlands. "Cisco's data growth increased 10 times in the US and 6 times in Europe between 2000 and 2002. This experience is validated by the rate of data growth across our customer networks and Internet backbone. Clearly there is a market opportunity for service providers which KPN has seen and seized."

Cisco is helping service providers drive revenue growth through the development and deployment of new converged voice/data services based on IP. Using Cisco's internet business solutions service providers can address their operating expense challenges while also driving the change in their culture required for success in the delivery of converged services to the market.

"Cisco's ability to help build our infrastructure and engage in joint marketing initiatives will greatly assist with the selling and provisioning of new services, and provides a solid foundation for our future deployment of converged IP services," concluded Huub Zabel.