[NPL] Cisco Systems Enters Consumer Market
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[NPL] Cisco Systems Enters Consumer Market

Cisco making a big splash today at Consumer Electronics Show:
- Partnerships with electronics makers
- Announcement with AT&T-TCI on building network
- New Cable modem that enables free local phone service
- CEO John Chambers on Moneyline tonight

E-mail if you need more details

Cisco Systems Announces Strategy for Consumer Markets Alliances,
Enabling Technologies Will be Key to Creating "Personal Networks"

LAS VEGAS, Nev. January 7, 1999 Cisco Systems Inc. today announced
its strategy to extend its Internet leadership to the consumer
market. The strategy is built around a vision to extend high-speed
Internet access from business to the consumer market at speeds up to
1,000 times faster than today's dial-up connections. Cisco also plans
to introduce high-speed "personal networks" within the home,
connecting individual users to PCs, phones, TVs and other Internet
appliances over a single broadband network.

Cisco's strategy will be based upon an open Internet platform, in
addition to a series of collaborative alliances with service
providers, consumer electronic manufacturers, software developers and
other companies who choose to play a role in providing
Internet-enabled services applications, and devices for consumers.

"The Internet revolution was started by big businesses who understood
that the Internet had the power to re-define and re-create the
competitive landscape. Today, consumers are the driving force in the
Internet Revolution," said John T. Chambers, president and CEO of
Cisco Systems. "In the Internet Economy, everyone and everything will
be connected."

Chambers announced that Cisco has formed a Consumer Line of Business
to implement its personal networks strategy. It will be headed by
Vice President and General Manager Robba Benjamin.

"Cisco's consumer strategy will have three key elements," Benjamin
said. "First, we will help service providers build high-speed
connections to the home and other locations where consumers access
the Internet. Second, we will license technology that will help
develop network-enabled services and applications that provide unique
value to consumers. Finally, we will partner with companies in all
sectors of the marketplace."

In a related announcement today, Cisco Systems, Inc. and General
Instrument Corporation announced that they intend to work with AT&T
on a non-exclusive basis to develop and trial a seamless, end-to-end
Internet Protocol (IP) solution that would allow AT&T to offer data,
voice and video services over the hybrid fiber-coax network now being
deployed by AT&T and TCI. The New World network will combine
Internet, phone and video services over a single cable line,
fundamentally changing the way communications services are delivered
to consumers. The network build-out also represents the first major
deployment of phone services over an Internet-based infrastructure,
using cable lines as the transmission vehicle.

Cisco announced broad support for its consumer strategy from more
than 30 service providers and consumer electronic companies, each
sharing Cisco's vision to extend high-speed Internet access from
business to the consumer market.

Cisco also announced plans to introduce a new type of personalized
network" for the home, a sort of plug-and-play local area network,
connecting PCs, phones, TVs and other Internet appliances. Cisco also
introduced a voice-enabled cable modem at CES, which will allow
consumers to get phone service from their cable company, in addition
to high-speed Internet access and television service. These personal
networks begin to lay the groundwork for Cisco's long-term vision to
turn the Internet into the next mass medium, eventually connecting
everyone to everything.

At CES, Chambers demonstrated a working networked home, using a
combination of cable, telephone and wireless solutions. The
demonstration featured real examples of broadband consumer products,
including a Hitachi set-top box that delivers a standard TV signal
with a picture-in-picture Internet connection, a wireless broadband
connection from Epigram, connecting a PC and TV for gaming, and
Samsung web video phones delivering TV quality service. Chambers also
demonstrated a wireless home network using technology from Sharewave,
which is up to 400 times faster that a standard modem connection.

Cisco's new consumer initiative intends to allow service providers to
generate additional revenue from new broadband Internet access
services needed for a networked home. At the same time, consumer
equipment manufacturers will generate additional revenue through the
development of new, high-speed Internet-enabled devices. Cisco will
continue to work closely with service providers to facilitate the
development of New World data, voice and video services, and also to
partner with consumer electronic companies to develop integrated
Internet, phone and video devices.

Cisco Systems, Inc. (NASDAQ: CSCO) is the worldwide leader in
networking for the Internet.


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