Telefonica in Germany Chooses Cisco to Expand Next Generation VoIP Network for Growth in Broadband Voice and Fixed-Mobile Convergence Market

Cisco Systems(R) (NASDAQ:CSCO) today announced that TelefonicaDeutschland GmbH is extending and upgrading its network for voice overIP (VoIP) services with Cisco(R) IP Next Generation Network (IP NGN)solutions featuring Cisco PGW softswitches and Cisco media gateways.The expanded network, delivered with Cisco partner, Dimension Data,will support the growth of wholesale and retail broadband voiceservices and help Telefonica to deliver new fixed-mobile convergedservices to consumers and business users.

Telefonica is one of the largest VoIP wholesale carriers in theGerman market, serving 30 national carriers and 160 Internet ServiceProviders (ISPs). The company is also extending its broadband networkreach to offer 25 megabits per second ADSL2+ services to over 40percent of German households by the middle of this year.

"Telefonica has achieved its leading position in the German marketthrough an uncompromising focus on developing a world-class IP networkfor all services," said Martin Kutter, COO Telefonica DeutschlandGmbH. "By working with Cisco to extend our voice network, we arestaying one step ahead in the technology race. The Cisco AdvancedServices team played an important role in the success of thisimplementation to deliver a stable network that supports our businessneeds."

The solution from Cisco is based on a distributed architecture ofCisco PGW 2200 Series Softswitches and Cisco AS 5350 Series and AS5400 Series Media Gateways. It provides call control andinterconnections for Telefonica's complete VoIP network with Class 4transit functionality and Class 5 line-side functionality which willbe extended in future through the integration with Ericssonsoftswitches within the Class 5 infrastructure.

"The accelerating demand for advanced broadband services hasresulted in Telefonica deploying one of the largest distributed CiscoPGW networks we have implemented to date," said Michael Ganser,general manager and vice president, Cisco Systems Germany. "Theproject has involved an extensive virtual team from Telefonica,Dimension Data and Cisco, with resources from software development,Cisco Advanced Services through to the financing expertise of ourCisco Capital team."

About Telefonica Deutschland

Telefonica Deutschland GmbH is a major IP carrier in Germany,concentrating its activities in the area of internet services forbusiness customers. Clients include more than 30 national carriers andover 160 internet service providers and online services. Telefonicacan connect into the worldwide network of Telefonica S.A. and operatesa multiple redundant, widespread backbone.

The business activities range from narrowband and broadbandinternet connections, virtual private networks (VPNs), integratedlanguage, video and data solutions, value-added services such as Voiceover IP as well as classic outsourcing services such securitysolutions. The unique IP infrastructure with its continuous MPLScapable backbone, ZISP platform, 320 PoPs (Point of Presence) and 74DSL transfer points enable Telefonica to offer its products andsolutions within Germany as full or part service packages, or asadvance solutions to mid-sized companies and large enterprises alike.

Information about the corporation: www.telefonica.de

Graphic material in digital format available upon request topresse@telefonica.de

About Cisco Systems

Cisco Systems (NASDAQ:CSCO) is the worldwide leader in networkingfor the Internet. Cisco news and information are available athttp://www.cisco.com. For ongoing news, please go tohttp://newsroom.cisco.com. Cisco equipment in Europe is supplied byCisco Systems International BV, a wholly owned subsidiary of CiscoSystems, Inc.

Cisco, Cisco Systems, and the Cisco Systems logo are registeredtrademarks or trademarks of Cisco Systems, Inc. and/or its affiliatesin the United States and certain other countries. All other trademarksmentioned in this document are the property of their respectiveowners. The use of the word partner does not imply a partnershiprelationship between Cisco and any other company. This document isCisco Public Information.