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Cisco, Acer sign agreement

Johannesburg, 27 Aug 1999

The Acer Group, the world`s third largest PC manufacturer, and Cisco Systems, the global leader in , today announced that they have signed a memorandum of understanding (MOU) to promote Cisco`s Internet Protocol (IP) solutions to Taiwan enterprises. Acer and Cisco will jointly develop and market multiservice networking solutions based on AVVID (Architecture for Voice Video and Integrated Data), a solutions architecture developed by Cisco for enterprises to integrate their data, voice and video networks.

The terms of this agreement will be implemented in two phases. First, Cisco will cooperate with the Acer Group and systems integration partners Acer Sertek, Acer`s Taiwan sales headquarters, and PAGIC, an Acer ISP and telecom service provider, to establish AVVID in Taiwan as a de facto model for enterprise IP telephony. Second, Acer will migrate and consolidate its existing LAN, WAN and voice networks into an integrated voice, video and data network based on AVVID. This new network will be installed in Acer offices worldwide within a period of three months and become one of the largest showcases for advanced telecommunications.

Stan Shih, CEO of Acer Group, said: "Our worldwide cooperation with Cisco will help us provide a competitive edge to our large corporate clients as well as to our internal operations. We are also pleased to incorporate AVVID technology into the telecommunications infrastructure of Aspire Park, our multifunction industrial park. I am firmly convinced that our relationship with Cisco will take Acer to greater heights as we work towards improving our efficiency, satisfying our customer`s needs and enhancing the quality of our service."

Richard Freemantle, vice president of Cisco Systems Asia Pacific said

"The New World of Telecommunications has arrived. The idea of converged voice, video and data networks, offering benefits such as ease of management, scalability, lower costs and increased productivity, is no longer just a concept. Enterprises and service providers all over the world are already implementing multiservice applications every day, and we are confident that Acer will be among the leaders.

"By co-developing and marketing AVVID-based enterprise telephony products with Cisco, Acer has demonstrated the vision and commitment that are cornerstones of successful global companies. Furthermore, Acer will soon become one of the first multinational companies out of Asia to run a totally integrated network. As the complexities of communicating in the business world increase, Cisco believes that the simplicity, ease of management and cost benefits of integrated corporate networks will supplant the Old World way of maintaining different networks for LANs, WANs and PBXs."

George Huang, Acer Group general controller states, "Our cooperation with Cisco is sure to speed up Acer`s expansion into Internet business. We look forward to developing Internet-related products with Cisco during our long-term strategic relationship."

AVVID is an architecture designed for large enterprises to deploy multiservice corporate networks that integrate voice, video and data on an IP infrastructure. Such networks greatly increase returns on infrastructure investments, and reduce the costs for installation, equipment, and operation. A key component of AVVID is the CCN (Cisco Communications Network) product line, which consists of three components: Cisco CallManager (virtual switch responsible for call control, digit analysis, routing, and advanced features); Cisco IP phones; and IP to PSTN (Public Service Telephone Networks)/PBX gateways.

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Acer Group

Founded in 1976, the Acer Group`s business includes research, manufacturing and marketing personal computers, motherboards, communications products, computer peripherals, semiconductors and consumer electronics. Acer is aggressively moving into other fields as well, including Internet, digital services and application software. Acer is a top-10 PC brand worldwide, with 1998 revenues of US$6.7 billion. More than 28,000 employees work at Acer`s 120 affiliates in 37 countries. Acer is the 3rd largest PC producer in the world, 10th largest brand in desktops, 7th in laptops and 6th in servers