News Release

Subictel Delivers high-speed DSL services over Cisco Systems infrastructure in Olongapo

OLONGAPO CITY, Philippines - July 31, 2002 - Cisco Systems,
Jul 31, 2002

OLONGAPO CITY, Philippines - July 31, 2002 - Cisco Systems, Inc., today announced that Subic Telecommunications Company, Inc. (Subictel) has chosen its line of Global DSL (Digital Subscriber Line) solutions to deliver a new generation of on-demand, high-speed and high quality networking services for its franchise area in Olongapo.

Subictel's customers include businesses located within the Subic Bay and immediate areas outside of the freeport zone. Subic Bay hosts a substantial number of multinational corporations and production facilities that have chosen to locate in Subic because of its strategic geographical location, strong transportation lines and advanced communications infrastructure.

"Users who spend most of their time browsing web sites or downloading files will find everything happening faster using Subictel's DSL service. Perhaps more importantly, the always-on flat rate nature of the Cisco DSL equipment means you do not have to worry about the file sizes or long download times anymore, as you'll be doing it at much higher speeds. The wider bandwith also makes it easier to use services like Internet radio or video conferencing," said Florante Cruz, executive vice president and chief operating officer of Subictel.

"DSL services around the world are becoming commoditized due to the lack of differentiation in the levels of service and increased competition amongst service providers. By using Cisco's solutions to enable value-added services for business customers, Subictel can differentiate itself, generate new revenue, and increase customer loyalty. Cisco IOS software provides the foundation to enable these services including managed Internet/network access with differentiated classes of service, firewall, VPN (Virtual Private Network), voice services for inter-office phone calls, and support for video-conferencing and multicast video," said Noel Coronel, regional manager for service provider of Cisco Systems Philippines.

Subictel's DSL services will provide access speeds of 256 Kbps upstream and 384 Kbps downstream over telephone lines via the DSL Access Multiplexer (DSLAM) located at Subictel and Piltel Central Offices.

Currently, Subic Telecoms' largest business users include Coastal Subic Bay, Reese Bros., Legenda Resort, Subic International Hotel and FedEx.

Cisco's Global DSL solutions enable service providers to deliver next generation services differentiated product offerings, and enhanced profitability. Major product components include the Cisco 6260 and the Cisco 6015 DSLAMs.

About Subictel

The SUBIC TELECOMMUNICATIONS COMPANY, INC., or Subic Telecom, was founded in June, 1994 and started as a joint venture company of PLDT, AT&T and SBMA to provide basic telephone service, domestic and international long distance, internet gateway and value added services in the Subic Bay Freeport area. Until February 2001 when Subic Telecom became a wholly owned subsidiary of PLDT. On September 5, 2001, Piltel and Subic Telecom entered into a Facilities Management Agreement of the regional telephone network, customer operations, network operations and payphones of Piltel in Subic and Olongapo City.

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