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Cisco Accelerates Advancements on IP Next-Generation Networks for Service Providers

Cisco Systems ® (NASDAQ:CSCO - News) today announced new products, features, and customer wins that demonstrate its continued momentum in delivering innovative Internet Protocol Next-Generation Networks (IP NGN) to service providers worldwide, increasing their ability to deliver innovative new services, improving their operational and capital expenditure efficiencies, and advancing the value-added network and service control carriers need for long-term business success.

Cisco first introduced its IP NGN vision and architecture in December 2004 by delivering a number of innovative solutions and major customer wins. Today's announcements build momentum on this vision with two major customer deployments:

Sprint selected Cisco as the strategic provider of its converged Cisco-based IP NGN, which will enable Sprint to sell and support advanced wide-area networking (WAN) services over an IP/Multiprotocol Label Switching (IP/MPLS) network to its customers. This migration to a Cisco IP NGN will help reduce operating cost and ease customer transition off legacy networks and services.
Comcast recently selected Cisco to help build its IP NGN, designed to support and accelerate the delivery of high-speed Internet, standard and high definition digital broadcast, on-demand video programming and voice services.
On the innovation necessary to achieve this vision Cisco is delivering a number of new solutions highlighted by: the introduction of the Cisco XR 12000 Series routers, significant enhancements to the Cisco 7600 Series routers including the new Cisco 7604 Router, a wide range of Interface Flexibility (I-Flex) options across the Cisco carrier-class routing portfolio through new shared port adapters (SPAs) and SPA interface processors (SIPs), and the introduction of the Cisco Call Session Control Platform.

"With this announcement, Cisco shows its strong commitment to innovation at each layer of IP NGN," said Mark Bieberich, Director, Communications Network Infrastructure at the Yankee Group. "The announcement signals to the marketplace that Cisco stands ready to deliver an integrated technology solution for bringing profitable new services to market."

Adding to the extensive existing Cisco IP NGN architecture and portfolio, these recent innovation announcements are focused around two of the three primary areas of convergence which are already well established in service provider networks today:

Network convergence -- where disparate networks need to be converged over a more efficient and cost-effective common infrastructure. Cisco's recent momentum in network convergence includes:

Following on the introduction of Cisco IOS XR software on the Cisco CRS-1 Carrier Routing System, Cisco today announced the availability of the Cisco XR 12000 Series routers. The Cisco XR 12000 combines the innovation of IOS XR, the first fully modular, self-healing operating system designed for always on operation, with the robust investment-protection available in the Cisco 12000 Series routers. Cisco also announced that service providers and research networks worldwide have begun evaluations and deployment of the Cisco XR 12000 in their networks.
BellSouth Corporation, a Fortune 100 communications company headquartered in Atlanta, Georgia and a parent company of Cingular Wireless, is currently evaluating the Cisco XR 12000. "The modular design of the software in the Cisco XR 12000 could enhance our ability to maintain service levels and performance," said Mike Duckett, research director -- BellSouth Science and Technology. "We are pleased with Cisco's plans to make the Cisco XR 12000 carrier class. This redesign, we believe, is critical to reducing the risk of feature introduction and increasing scalability and reliability." (See today's related press release).
Further enhancing the widely deployed Cisco 7600 Series routers, Cisco introduced several significant updates in both hardware and software. Hardware updates include the new Cisco 7604 Router, which offers up to nX 10 Gigabit Ethernet performance in a compact, five rack-unit (RU) high chassis. Software updates include a number of IOS enhancements such as hierarchical quality of service (QoS) and advanced traffic engineering. Cisco also announced several service providers using these new products and features in their networks to offer a wide variety of network services to both business and residential customers. (See today's related press release).
Cisco further enhanced its investment-protection capabilities for its customers by introducing the Cisco Interface Flexibility (I-Flex) design, comprised of shared port adapters (SPAs) and SPA interface processors (SIPs). Because they are built on a common design, these SPAs and SIPs allow enterprise and service provider customers to take advantage of improved slot economics resulting from modularity and programmable interface processors, which are interchangeable across Cisco routing platforms. The I-Flex design also offers superior service intelligence and line rate performance in SIP, by providing a rich set of QoS features for premium service delivery while effectively reducing the overall cost of ownership for customers. Today Cisco introduced SPAs and SIPs for these platforms -- the Cisco 7304, Cisco 7600, Cisco 10000, Cisco 12000, and Cisco XR 12000 Series routers, as well as the Cisco CRS-1. (See today's related press release).
Cisco has achieved a run-rate of more than $1 billion for the Cisco Integrated Service Routers in only two quarters, making it one of the most successful platform introductions in Cisco's history. In addition, Linksys, a division of Cisco Systems, announced that it has shipped more than 1,000,000 voice ports(1) in only six months.
Service convergence or "triple play on the move" -- where increased application and subscriber-level service control intelligence is needed to facilitate the efficient and profitable delivery of voice, video, data and mobility services for wireline and wireless convergence. To achieve true service convergence, providers must be able to operate, bill, and manage a service over a range of access mediums. Cisco and its partners have developed an open Service Exchange framework, which allows service providers to facilitate and control customer access and use IP services while placing no limit on the types of applications that can be deployed. Recent momentum in this area includes:

Call and Session Control are keys to enabling the network as an intelligent services delivery platform that provides significant value to the end-user by building on basic calling functionality. In this area, Cisco has introduced the Cisco Call Session Control Platform (CSCP), which provides broadband service providers and wireless carriers a carrier-grade, Session Initiated Protocol (SIP)-based services delivery environment to provide multimedia applications and services over their IP-based networks. Cisco recently announced that Comcast has selected the Cisco BTS 10200 Softswitch platform to take advantage of its CSCP capabilities to enable advanced real-time communications features.
Cisco is continuing to extend its leadership in IP NGN video networking solutions for customers worldwide. The world's most successful terrestrial digital video networks run over Cisco infrastructure with more than 10 million video-on-demand subscribers in North America alone. In Europe, recent examples such as neuf telecom's TV over digital subscriber line (DSL) deployment using Cisco solutions underscore Cisco successes in providing residential video over broadband services in that region. And in Asia, Cisco recently announced that Softbank Broadband Corporation is offering Triple Play services, including video, under the Yahoo! Broadband brand.
"Our momentum in the market is clearly demonstrated by these major customer announcements and the new and innovative IP NGN solutions we introduced today," said Jeff Spagnola, vice president, Service Provider Marketing at Cisco. "But we recognize that the transformation of the networks and their business that our providers are pursuing requires continued innovation and collaboration on all fronts, including implementation, training and sales. To this end, we are firmly committed, are making the investment, and have the drive necessary to help our customers be successful."

Pricing and Availability

The Cisco XR 12000 Series is expected to be available in June 2005. The base configuration for the Cisco XR 12000 starts at a list price of $45,500. Upgrade options for the Cisco 12000 routers start at a list price of $12,500;
The Cisco 7604 Router is expected to be available by end of April 2005. The base configuration will be list priced starting at $34,000;
The Cisco SPA and SIP solutions start at a list price of $2,500 and vary according to product models and supported platforms;
For more information about the new product and feature additions to the Cisco routing portfolio and the Cisco IP NGN solutions in general is available at http://www.cisco.com/go/ipngn.

About Cisco Systems

Cisco Systems, Inc. (NASDAQ:CSCO - News), the worldwide leader in networking for the Internet, celebrates 20 years of commitment to technology innovation, industry leadership and corporate social responsibility. Information about Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com.

(1) A port is the physical (RJ-11) phone port found on an analog phone adapter or router that works with a VoIP subscription.

Cisco, Cisco Systems and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. in the U.S. and certain other countries. All other trademarks mentioned in this document are the property of their respective owners.



--------------------------------------------------------------------------------
Contact:
Cisco Systems, Inc.
John Noh, 408-853-8445 (Trade Press)
jnoh@cisco.com
Liz Lemon, 408-527-8452 (Investor Relations)
lemon@cisco.com
Amal Nichols, 408-526-6493 (Industry Analyst)
amnichol@cisco.com



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