Cisco Systems and China Unicom Announce Intent to Form Strategic Alliance to Accelerate New World Communication Services Development

Business Wire, June 2, 2000

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--June 2, 2000

Cisco Systems, Inc., the worldwide leader in networking for the Internet, and China United Telecommunications Corporation (China Unicom), the second largest telecommunications carrier in China, today signed a two-year strategic alliance Memorandum of Understanding (MOU) to extend a long-term cooperative relationship aimed at accelerating the development of New World communication services in China.

The memorandum was signed by Mr. Liu Yunjie, Vice President of China Unicom and Gary Daichendt, Cisco's Executive Vice President, Worldwide Operations in San Jose, California today.

China Unicom, as one of Cisco's key customers and partners in China, offer services such as data network communications, domestic and international long-distance call services, wireless paging and mobile phone communications. In order to extend its position in the China market, China Unicom is fully committed to developing and implementing new telecommunications services, especially IP-based network services.

Cisco is a strategic alliance partner to be selected by China Unicom to help develop its service offerings. The proposed alliance between the two companies intends to allow China Unicom to offer new communications services and speed time to market.

This MOU covers intended cooperation at two levels: joint development of technology and consulting services between the two parties. Cisco intends to provide state-of-the-art end-to-end products and technology as well as provide consulting to China Unicom on new services. China Unicom and Cisco intend also to launch joint marketing campaigns for all Unicom services that achieve Cisco Powered Network (CPN) accreditation. China Unicom's VoIP (Voice Over Internet Protocol) offering, which use Cisco solutions, will be the first service to seek accreditation. The CPN program enables accredited service providers to demonstrate a high level of service quality and reliability to their customers.

With the rapid growth of the telecommunications industry and the continuing development of China Unicom, the cooperation between Cisco and China Unicom has extended from providing devices and solutions to broader areas. "Due to the swift development of China's telecom market, China Unicom must accelerate the introduction of new services, reduce time-to-market and development costs. Cisco Systems through its complete range of solutions intends to work with China Unicom meet these requirements. Under the MOU, Cisco intends to not only provide advanced end-to-end products and technology, but its experts intend also to provide value-added services including business policy consulting," said Mr. Yang Xianzu, Chairman and General Manager of China Unicom.

"With the explosive growth of IP technology, new opportunities are arising in the telecom industry. Cisco has been committed to partnering with service providers to build voice, data and video integrated global networks. As an emerging telecom operator, China Unicom is capable of building a future-oriented telecom business structure and creating competitive advantages in the market. Cisco recognizes the importance of an alliance with China Unicom and we hope our joint efforts drive business development for both parties," said Gary Daichendt, Cisco's Executive Vice President, Worldwide Operations.

About China Unicom

China United Telecommunications Corporation (China Unicom), China's second largest telecommunications carrier, offers its customers basic services in telecommunications and value-added operations. The company was founded on July 19, 1994, with the approval of the State Council. China Unicom, a limited liability corporation with characteristics of autonomous operations, employs over 10,000 and owns 6 subsidiaries with 163 branches spreading nationwide through 30 provinces, autonomous regions and municipalities directly under the Central government.

About Cisco Systems

Cisco Systems, Inc. (Nasdaq:CSCO) is the worldwide leader in networking for the Internet. For more information, please visit http://www.cisco.com.

Note to Editors: Cisco, Cisco Systems, and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. and/or its affiliates in the U.S. and certain other countries. All other trademarks mentioned in this document are the property of their respective owners.