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Cable & Wireless First to Offer Fully Managed End-to-End, Global IP Platform Required to Support the Latest IP-enabled Data, Video and Voice Desktop Applications



LONDON - April 24, 2002 - Cable & Wireless (LSE: CW; NYSE: CWP), the global telecommunications group, today announced a four-year strategic relationship with Cisco Systems, Inc. to accelerate the development and expansion of Cable & Wireless' Internet Protocol (IP)-based communications services through a technical and marketing agreement that includes the build out of a global Cisco Powered Network (CPN) combined with joint marketing and sales initiatives, for both the indirect and direct channels as well as cooperation in developing concepts for next generation products and services.



This agreement will focus specifically on the growing demand for new and innovative data and voice convergence solutions. Through its relationship with Cisco, Cable & Wireless plans to be the first company to provide on a global basis both fully-managed local area network (LAN) and wide area network (WAN) components for a single IP platform required to support the latest advancements in desktop-to-desktop data, video and voice communications.



The services, which Cable & Wireless will develop with Cisco's cooperation, branded Cable & Wireless IP Convergence solutions, will offer businesses the ability to converge their data and voice network over a single IP infrastructure, thereby enabling them to avoid the time and expense of building, maintaining and operating several networks. In addition, the services will help businesses to increase productivity by improving communications between employees, customers and partners through the deployment of the latest IP-enabled desktop-to-desktop communications applications. The services, which will include network-based IP-VPN, IP-LAN and IP-private branch exchange (IP-PBX), are targeted towards multinational corporations as well as medium to large-sized businesses.



These solutions will be delivered over a privately managed Cable & Wireless Cisco Powered Network (CPN) with Quality of Service (QoS) characteristics to support the specific requirements of data, video and voice applications.



"Cable & Wireless has delivered a convergent communications solution for Marks & Spencer which has produced scalable, tangible business benefits," said Adrian Pratt, technical architect, Marks & Spencer. "Our contract with Cable & Wireless, which incorporates Cisco technology, offers us best of breed solutions from two leading global players." Marks & Spencer is the UK's leading clothing retailer with more than 300 stores across the UK.



Cable & Wireless IP Convergence Solutions


Cable & Wireless has already developed and brought to market in select regions several IP Convergence solutions bundled with Cisco customer premise equipment (CPE), including Cable & Wireless IP-VPN QoS in the UK and Cable & Wireless IP-LAN in the UK and US. Cable & Wireless expects to introduce IP-VPN QoS in the US during the second quarter of 2002 and in Europe and Japan later in 2002.



"With this agreement, Cable & Wireless is taking a leadership position in delivering new and advanced desktop-to-desktop IP solutions that allows businesses to converge data and voice networks in their pursuit of cost savings and increased productivity," said Don Reed, CEO, Cable & Wireless Global. "By expanding our relationship with Cisco, we are better positioned to utilize Cisco's technology leadership and distribution channels to deliver new IP solutions to the market quickly."



Global Cisco Powered Network


To support these new solutions, Cable & Wireless will deploy a multi-protocol label switching (MPLS)-based IP-VPN using Cisco equipment and technology, including Cisco 12000 and 10000 Series Internet Routers, Cisco 7500, 7200 and 3600 Series Routers and Catalyst 6500 Routers in addition to a host of other Cisco products. This CPN, already operating in the UK for more than a year, is now being deployed in the US with anticipated rollout in other regions and will form the foundation over which Cable & Wireless IP Convergence solutions will be delivered. As a private MPLS IP network dedicated solely to carrying data and voice traffic from these services, Cable & Wireless will be able to deliver global QoS parameters to support the specific requirements of data, video and voice applications.



"This agreement allows Cisco to deliver customized, differentiated solutions for Cable & Wireless' end-user customers. The goal is to provide them with complete network technology and support, saving them time and resources while freeing them to focus on their core business and operations," said Bill Nuti, senior vice president of Worldwide Service Provider Operations, Cisco Systems. "Focusing on IP data and voice convergence solutions helps customers using these services become more competitive. Additionally, because this is a private, dedicated MPLS network, C&W can offer customers specific QoS guarantees for individual applications, such as data, voice and video."



About Cable & Wireless


Cable & Wireless is a major global telecommunications business with revenue of over £8 billion (US$11 billion) in the year to 31 March 2001 and customers in 70 countries and consists of two core and complementary divisions: Cable & Wireless Regional and Cable & Wireless Global. Cable & Wireless Regional offers a full range of telecommunications services in 35 countries around the world. Cable & Wireless Global's focus for future growth is on IP (internet protocol) and data services and solutions for business customers. It has developed advanced IP networks and value-added services in the US, Europe and the Asia-Pacific region in support of this strategy. With its financial strength and the capability of its global IP infrastructure, Cable & Wireless holds a unique position in terms of global coverage and services to business customers.


For more information about Cable & Wireless, go to http://www.cw.com .



Forward-Looking Statements


This press release includes certain estimates, projections and other forward-looking statements within the meaning of the safe-harbor provisions of the U.S. federal securities laws. Because these forward-looking statements include risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors that are beyond Cable & Wireless' and Cisco's ability to control or estimate precisely, such as future market conditions, currency fluctuation, the behavior of other market participants, the actions of governmental regulators and other risk factors detailed in Cable & Wireless' and Cisco's reports filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. Cable & Wireless and Cisco are not obligated to publicly release any revisions to forward-looking statements to reflect events after the date of this press release or unforeseen events.
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