News Release

Telecom Italia and Cisco Systems Collaborate on New Internet Telephony Solutions for Businesses

MILAN, Italy, December 15, 2004 - Telecom Italia and Cisco
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Dec 15, 2004

MILAN, Italy, December 15, 2004 - Telecom Italia and Cisco Systems® announced an agreement to collaborate to bring to market innovative solutions to offer integrated, IP (Internet Protocol) technology voice and data services targeted at midsize and large businesses.

In addition to offering "voice" over Internet Protocol services (VoIP), the integration of Cisco® IP solutions on the Telecom Italia platform, will help customers to utilise all the benefits of adopting a wide range of advanced services and solutions, including multimedia messaging, videoconferencing, file and document sharing and call center applications.

This agreement, which follows from Cisco's strategic technology partnership with Italtel, reaffirms the joint commitment of Telecom Italia and Cisco to fuel the proliferation and the development of new communication technologies based on the IP protocol by increasing the capabilities of the network.

"More and more Italian companies understand the benefits that the implementation of IP Communications solutions can provide", said Claudio Bossoli, Managing Director at Cisco Systems for Telecom Italia. "The integration of voice and data on a multiservice infrastructure can help organizations to increase the productivity and provide long-term investment protection".

"Telecom Italia is concentrating its efforts on bringing new services to the enterprise market that will improve the communications with customers and markets, investing in innovation and focusing on the creation of new services and applications", Pietro Labriola, Marketing Director of Telecom Italia Wireline.

About Telecom Italia Group & Telecom Italia Wireline

The Telecom Italia Group is an ICT leader in Italy and, principally through TIM, a major player on the world stage. The Group's solid financial footing has helped to make it a leader of competitiveness, in strategic sectors ranging from fixed-line and mobile telecommunications to the Internet and Media, and in high growth markets such as data services and broadband.

As Italy's number one fixed-line network, voice, data and Web services company, Telecom Italia Wireline is ramping up growth in innovative market areas, such as value added services, data transmission, broadband and call center, as well as pursuing growth on the international broadband services market. As the primary driver of broadband take-up in Italy, Telecom Italia Wireline is now bringing broadband to every town in Italy, and is helping to bridge the so-called digital divide; beyond Italy's borders, it is pursuing growth in France, Holland and Germany, and has become the fastest-growing operator on the continent.

For more information, please visit http://www.telecomitalia.it.