T-Systems and Cisco Systems Announce Strategic Relationship to Deliver Integrated Voice, Data and Security Services to Medium-sized and Large Businesses

FRANKFURT AM MAIN, Germany, May 10, 2006 - T-Systems and Cisco Systems® today announced a comprehensive strategic relationship focused on harnessing advanced technologies to improve productivity and cost efficiencies for medium-sized and large businesses.

T-Systems and Cisco® are working together to deliver a range of integrated services incorporating local area networking (LAN), Internet Protocol (IP) communications and security, as well as developing solutions for vertical markets such as financial services, and a radio frequency identification (RFID) solution for the transport and retail sectors in Germany. The relationship will be rolled out on an international level in the next phase.

Under the arrangement, T-Systems and Cisco will cooperate on marketing, business development and sales activities over the next three years. These activities will primarily be aimed at developing the medium-sized business sector with packaged services designed to meet the specific needs of this segment. These tailored packages feature IP-based networking solutions integrated with value-added services such as IP communications and security.

“With Cisco, we have a valuable partner with a strong brand. Few companies can drive advanced technologies in the market the way Cisco does,” said Ulrich Kemp, chief operating officer T-Systems, Business Services Division.

Michael Ganser, vice president and managing director, Cisco Systems Germany added: “T-Systems has an excellent presence among medium-sized businesses. It is therefore well equipped to help us penetrate the German market with our unified communications and security solutions.”

Cisco and T-Systems are also developing an integrated RFID solution. This will help medium-sized businesses, particularly in the retail and transport sectors, to incorporate RFID technologies from both companies into their existing infrastructure on a global basis in just a few days.

The alliance between T-Systems and Cisco will also benefit large businesses and vertical markets such as the financial services sector. Axel Knobe, head of Sales & Service of T-Systems said: “T-Systems will, in cooperation with Cisco, develop integrated ICT solutions to help financial institutions optimize business processes and integrate bank branch offices in the multi-channel services mix. We will be one of the first system integrators offering such a solution.”

Bernd Heinrichs, head of Business Development at Cisco Systems Germany, said: “At Cisco, customer success is the focal point of our business. Through technology innovation and business partnerships, we aim not only to make our service provider customers successful but to help them address increasing demands by their end customers, so that, together, we can make them successful as well. As the market leader in Germany, T-Systems is the ideal partner to help us achieve our goals.”
About T-Systems

T-Systems is one of Europe’s leading providers of information and communications technology (ICT). Within the Deutsche Telekom Group, T-Systems serves business customers. The company has 52,000 employees in over 20 countries worldwide, and posted revenues of approximately €12.9 billion in 2005.

On April 1, 2006, T-Systems took over the shares in gedas AG from Volkswagen AG. gedas generated a turnover of around 606 million euros in 2005 and serves customers in the industry sectors for automotive, transport, logistics and public administration.

T-Systems is the global ICT partner for multinational corporations. To develop the international footprint, it extends activities in Western Europe growth countries and strengthens its presence in important key automotive markets, such as Latin America and Asia.

T-Systems optimizes processes and cuts costs for its customers, giving them greater flexibility for their core business. Services span the entire ICT value chain - from infrastructure and solutions to business-process outsourcing.

For more information about the company and its services, see www.t-systems.com and www.gedas.com.

About Cisco Systems

Cisco Systems (NASDAQ: CSCO) is the worldwide leader in networking for the Internet. Cisco news and information are available at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com. Cisco equipment in Europe is supplied by Cisco Systems International BV, a wholly owned subsidiary of Cisco Systems, Inc.

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Cisco, Cisco Systems, and the Cisco Systems logo are registered trademarks or 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. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.

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