BEIJING, P.R. China, September 5, 2002 - Cisco Systems, Inc., announced today that it has been selected by Shanghai Telecom, the telecommunications subsidiary of China Telecom in Shanghai, to supply networking technology for the creation of a city-wide multimillion dollar broadband network. Cisco products, primarily Cisco 12400 Series Internet Routers, will provide the IP backbone network and services for construction of the second phase of the Shanghai Telecom Metropolitan Area Network (MAN), Shanghai's largest Internet protocol (IP) backbone exchange and access network. Upon completion of Phase II construction, the Shanghai MAN is expected to be China's largest urban communications network.

The Shanghai MAN Phase II construction, which is scheduled to begin by the end of this year, will use Cisco's routers and switches to upgrade the existing network. The upgrade will create one of the most comprehensive information infrastructure systems in China and will allow Shanghai Telecom to deliver rapid communications services, such as high-speed Internet access, Virtual Private Network (VPN), and Multicasting, to its users.

"As a leading provider of Internet backbone network equipment, Cisco is pleased to continue our contribution to the construction of Shanghai's MAN and to the development of state-of-the-art communications for China, " said Mr. Jia-bin Duh, President of Cisco China and Vice President of Cisco. "We've worked closely with Shanghai Telecom to test Cisco products in a simulated Phase II complex network environment, and both parties are confident that we will build a solid, multifunctional, and effective network for Shanghai."

Cisco's 12400 series Internet routers represent the state-of-the-art in high-end networking, and the Shanghai Telecom MAN will benefit from their high performance and functions. Cisco's products can be easily integrated with other products to provide for additional solutions that meet customer's requirements.

After the second phase expansion is completed, Shanghai Telecom will immediately provide full network point-to-point IPVPN services to private users and commercial buildings, including those equipped with older Ethernet and copper connections. Based on Cisco's leading networking technology, the network will become a scalable platform on which additional revenue-generating services can later be delivered throughout Shanghai.