SYDNEY, Australia, July 27, 2005 - Data#3 Limited (ASX:DTL) has realised operational cost savings of several thousand dollars per month as a result of the Cisco Systems® Internet Protocol (IP) Communications solution it deployed almost 12 months ago. The converged data and voice network has also enhanced communication capabilities across the national organisation, improving productivity and helping align the network to business processes.

Data#3 removed its private branch exchange (PBX) technology and replaced it with the IP telephony solution from Cisco® during May to July 2004. The solution was implemented across six Data#3 locations with 350 Cisco IP handsets deployed. Several thousand dollars per month in operational cost savings have been realised as a result of eliminating PBX maintenance costs, reducing local and STD calls due to least-cost routing and reducing costs associated with fixed line-to-mobile and mobile-to-mobile calls.

Laurence Baynham, general manager, Data#3 Limited, said; "We're extremely pleased to be realising a healthy monthly operational cost saving since the deployment was completed, and we have realised better than expected savings on our long-distance calls due to the benefits of least-cost routing. We are also on track to have recouped our total capital investment in the IP Communications system within 18 months. Further, communication in general across the Data#3 organisation has increased over the past 12 months. Because there is no cost to the company for internal calls, employees are communicating more across our offices which is really pleasing. They are also benefiting from additional functionality which helps them stay mobile and productive."

Calling Line Identification has recently been added to the IP telephony solution and linked with Data#3's customer relationship management (CRM) application, which has been populated with more than 10,000 customer details and contact numbers. This application alerts a Data#3 employee to the name of an inbound caller. Voice-mail calls also indicate the name of the caller which becomes of significant value given voice-mail messages can now be sent to staff's mobile phones via short message service (SMS) when they are out of the office. The Caller Identification is included with the SMS message so that employees out of the office know immediately the voice-mail message sender and can attend to it immediately if they have been expecting an urgent call. This has resulted in increased levels of customer service and, in many instances, the shortening of response times to customer calls.

Data#3 has also commenced rolling out a Cisco IP Softphone application. Employees simply plug their headset straight into their laptop loaded with the IP Softphone and then plug straight into the network. Significant cost savings can be realised when employees travel overseas given the high cost of mobile global roaming, which in the past has cost Data#3 anywhere from $500 to $1000 per employee per week overseas. With the IP Softphone, employees can use a hotel's broadband connection to connect via virtual private network (VPN) to Data#3's network. They can then make internal calls to all Data#3 employees at no cost as well as outbound long-distance calls to states in Australia utilising the least-cost routing functionality of the IP network.

Mr Baynham said; "The overall benefits to Data#3 thus far from our IP telephony solution have been fantastic in terms of improving productivity, enhancing communication and reducing operational costs. Data#3, which is a Cisco Gold Certified Partner, has found that our own IP implementation adds tremendous credibility to the IP solutions that we propose to customers. We can actually demonstrate to them the technology at a technical level and illustrate quantifiable benefits as to why we moved to IP Communications. This capability really gives us a competitive advantage in the market place."

Ross Fowler, managing director, Cisco Systems said; "Data#3 is a great example of an organisation which has offices across Australia and a very mobile workforce. The Cisco IP Communications solution is helping Data#3 to reduce costs and take advantage of productivity benefits available through Internet networking."

The IP Communications solution implemented by Data#3 is composed of Cisco networking hardware and software as well CTI and voice-mail software from Performance Solutions Limited. The network includes Cisco CallManager, Cisco gateway routers and powered switching, Cisco IP Phone 7036, 7970, 7960, 7940 and 7912 handsets. Cisco IP Softphone software is being evaluated for remote users.