News Release

Optus selects Cisco solution for major expansion of IP network to create cost efficiencies and leading edge customer services

Cisco to provide core and network edge equipment in national
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Sep 27, 2002

Cisco to provide core and network edge equipment in national IP network upgrade

SYDNEY, Australia - September 27, 2002 - Cisco Systems has been selected by Optus to provide Internet Protocol-based networking equipment in a major national network upgrade to improve network efficiencies and significantly expand its services to customers.

Under a new 5-year supplier agreement, Cisco will provide Optus with a comprehensive suite of networking hardware and software, including routing, switching, content management and security solutions for its IP core and IP access network. Optus expects to be able to reduce operational costs by up to 30 per cent over the term of the agreement by taking advantage of the inherent cost efficiencies offered by an IP based network.

As one of Australia's largest telecommunications companies, Optus has millions of consumer, major corporate, government and service provider (other carriers and ISPs) customers across Australia and the Asia Pacific region.

"The network solution provided by Cisco will enhance Optus' offering to business and government customers. It will allow us to increase our flexibility when offering a great range of data products," said Dr Stephen Rotheram, Managing Director, Optus Networks.

"We are delighted to have been selected by Optus for this major expansion of their network. Optus will be able to offer its customers new services based on Internet Protocol," said Mr Terry Walsh, Cisco Managing Director, Australia & New Zealand.

Optus is a leading Cisco Powered Network Provider. Services Optus will offer its customers as a result of the IP network expansion include:

' Internet access: NetAccess Direct (wholesale & retail); NetAccess Dial.
' Optus Private IP (OPI): MPLS Virtual Private Network; Secure Office; Managed Router.
' Optus Private IP (OPI) Voice: Voice over IP dedicated tie lines between PABXs.
' Ethernet to the building: "Transparent LAN" and Gigabit Ethernet "Netaccess" services.
' Optus IntelleCentre: network-based call centre solutions.
' Optus "Expan" range of hosting services.

In addition to these accredited services, Cisco is working with Optus on the development of a range of enhanced IP products and services.

Optus' network consists of a nationwide IP backbone built with Cisco's 12000 Series Routers. The network also utilizes Cisco 7600 Series and Cisco 6500 Catalyst Series Switches, as well as 3500 Series Routers and voice and dial gateways, based on the Cisco AS5400 Universal Access Gateway platform.

The deployment of Cisco 12000 Series Routers in its IP based "Main Switching Core" backbone will create a Multi-Protocol Label Switching virtual private network (MPLS VPN) network, able to scale to 10Gbps. This deployment will allow Optus to deliver high bandwidth, high-value services to enable convergent streams of voice, data and video.

About Optus

Optus is an Australian leader in integrated communications - serving more than five million customers each day. The company provides a broad range of communications services including mobile, national and long distance services, local telephony, international telephony, business network services, internet and satellite services and pay television. See www.optus.com.au for further information.

About Cisco Systems

Cisco Systems, Inc. (NASDAQ: CSCO) is the worldwide leader in networking for the Internet. Cisco news and information are available at www.cisco.com.

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