News Release

Belgacom Chooses Italtel and Cisco Systems to Develop Its IP Based Multimedia Services

MILANO, Italy - February 23, 2005 - Italtel, a company
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Feb 23, 2005

MILANO, Italy - February 23, 2005 - Italtel, a company operating in voice, data, and video integration on telecommunications networks, and Cisco Systems, Ltd., the worldwide leader in networking for the internet, today announced they have been chosen by Belgacom, a leading telecommunications company in Belgium, for the development of its IP (Internet Protocol) based Multimedia Services.

The contract is for the supply and end-to-end integration of a new IP-based NGN (Next Generation Network) consolidated infrastructure on which Voice over IP and other new multimedia Real-Time-Communication services could be delivered to the residential and business segments.

"Belgacom's decision spurs from a growth strategy launched by Italtel in the EMEA region, where technological evolution and business opportunities are driving a growing number of operators to migrate voice traffic and launch new multimedia services on IP-based networks," said Antonio Cassese, executive vice president sales operations with Italtel. "Once again the blend of technologies and know-how, given by the strategic alliance between Italtel and Cisco Systems that was recently extended to include corporate voice services, proved to be the right choice for the evolution towards networks/services convergence of a service provider."

"We are very pleased to have worked with Italtel on this solution," said Enrico Deluchi, managing director, EMEA Business Development and Marketing, Service Provider Wireline, Cisco Systems. "This is an excellent example of success for our strategic alliance -- our joint focus and attention on gaining momentum in the multi-service networks and next generation services market."

The IP-based NGN Real-Time-Communication Plaftorm is based on the Italtel NGN-IMS Architecture, with ISSW (Italtel iMSS based Softswitch solution) and i-UDB (Italtel Universal Data Base) platforms developed by Italtel at the network core, and integrates Cisco VoIP gateways and Cisco IP carrier routers as well as value-added application platforms.

The ability of Italtel and Cisco to provide advanced innovative solutions, together with its outstanding experience in the successful roll-out of large scale VoIP networks with other leading tlc operators, was a major factor in Belgacom's choice for a strategic partner for its new voice and multimedia services offering.

About Belgacom

Belgacom is the leading telecommunications company in Belgium and a market leader in a number of areas, including retail and wholesale fixed-line telephony services, mobile communications services and broadband data and Internet services. For the year ended 31 December 2003, the Group had total revenue of EUR 5,454 million and operating income before depreciation and amortization (excluding non-recurring items) of EUR 2,250 million.

About Italtel

Italtel designs, develops and installs new-generation integrated multi-service networks (voice/data/video) ensuring fixed and mobile operators and ISPs infrastructures that are reliable and open to networking and technological developments, thanks to its systems integration capability. In the last ten years Italtel has invested a significant part of its revenues in innovation. Revenues for 2003 totaled 591.8 million euro. Since 2000, Italtel's main shareholders are Clayton, Dubilier & Rice, Telecom Italia and Cisco Systems.