Fujitsu and Cisco Form Strategic Alliance; Joint Development of Next Generation High-End Routers Will Deliver Improved Quality and Accelerated Feature Development

Business Wire, Dec 6, 2004

SAN JOSE, Calif. & TOKYO -- Fujitsu Limited (TSE:6702) and Cisco Systems, Inc. (NASDAQ:CSCO) today announced that they have reached a fundamental agreement to enter into a strategic alliance focusing on routers and switches that will enable service providers and enterprises to build advanced Internet Protocol (IP) networks. Under this collaboration, Fujitsu and Cisco will carry out joint development of high-end routers, plan future cooperation in routing and switching, and collaborate on continuous quality improvement, enhanced support and service.

"Partnering is a strategic imperative for companies such as Cisco and Fujitsu to address service providers' and enterprise customer requirements," said Mike Volpi, senior vice president of Cisco's Routing Technology Group. "Forming a strategic alliance with Fujitsu enables us to combine resources so we can deliver on those requirements with value-added, industry-leading networking solutions."

"Telecommunications service provider networks must support the highest quality service levels and be built upon the best technologies available," said Chiaki Ito, corporate executive vice president, Fujitsu Limited. "Together, Fujitsu and Cisco have unparalleled technology depth, and through the joint development and other collaborative efforts we are embarking upon, we will be able to address service providers' needs with even higher quality systems and innovative solutions."

IP-based networking products such as routers and switches are central elements of future network infrastructures, and the performance and quality of these products will have a major impact on network systems overall. This is especially true for telecommunication service provider networks, where they will play a vital and essential role in determining the service and quality levels that providers can offer.

Through this agreement, the companies will take advantage of Cisco's worldwide leadership in IP technologies and Fujitsu's industry-leading expertise in high-reliability and high-availability technologies to quickly and continually bring to market world-class networking products. The alliance will initially focus on the Japanese market in these key areas:

A[micro]   1) The companies will collaborate on development of Cisco's IOS-XR
       operating system for multi-terabit routers. This is the first
       time Cisco has joined with another communications equipment
       manufacturer in router operating system development. By
       combining their engineering knowledge, Fujitsu and Cisco will
       be able to accelerate the development of features critical to
       Japanese service providers and large enterprises.

A[micro]   2) Fujitsu will offer Fujitsu and Cisco co-branded routing
       products running IOS-XR to telecommunications service
       providers in Japan. Capitalizing on the technological
       expertise it has accumulated in its telecommunications
       equipment business, Fujitsu will respond to the strict quality
       demands of Japan's telecommunications service providers by
       offering networking systems with even higher levels of
       reliability. Fujitsu plans to release the first co-branded
       product in the spring of 2005.

A[micro]   3) Fujitsu will offer telecommunications service providers and
       enterprise users comprehensive network solutions that combine
       specific networking products with servers and other computing
       equipment, based on a roadmap of both companies' router and
       switch product offerings.

A[micro]   4) The companies will work closely together on test and
       integration processes to ensure carrier class quality
       requirements are met as well as offering service and support
       to ensure highest level of customer success.

About Fujitsu

Fujitsu is a leading provider of customer-focused IT and communications solutions for the global marketplace. Pace-setting technologies, highly reliable computing and communications platforms, and a worldwide corps of systems and services experts uniquely position Fujitsu to deliver comprehensive solutions that open up infinite possibilities for its customers' success. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 4.7 trillion yen (US$45 billion) for the fiscal year ended March 31, 2004.

For more information, please see: www.fujitsu.com

About Cisco

Cisco Systems, Inc. (NASDAQ:CSCO), the worldwide leader in networking for the Internet, this year 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, go to http://newsroom.cisco.com.

Cisco, Cisco IOS, Cisco Systems, and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. and/or its affiliates in the United States and certain other countries. All other trademarks mentioned in this document are the property of their respective owners.