KUALA LUMPUR, Malaysia -- Telekom Malaysia and Cisco Systems(R) (Nasdaq:CSCO) are collaborating on new Internet Protocol (IP)-based managed services specially designed for customers in Malaysia. The two companies have entered into an agreement to closely align their efforts to enable Telekom Malaysia to create, commercialize and deliver a comprehensive suite of managed services that make use of integrated data, voice and video IP network technologies from Cisco(R).

"In this new expanded relationship, Telekom Malaysia and Cisco will work together to drive profitable market through the development and delivery of targeted, differentiated IP and broadband solutions to the enterprise and commercial markets. The combined efforts of the two companies are expected to bring greater value to customers by helping them to increase productivity and reduce costs and by resolving their key business challenges. Customers will benefit from expanded functionality, performance, reliability, and scalability from solutions offered by Telekom Malaysia and Cisco," said Dato' Abdul Wahid Omar, Group Chief Executive Officer, Telekom Malaysia.

The agreement will see Telekom Malaysia and Cisco align their technology, marketing, and sales forces to enhance the delivery of new managed services from Telekom Malaysia that utilize Cisco technology and will collaborate to advance product and technology planning. Companies in Malaysia ranging from large corporations to small businesses will benefit from the increased breadth and depth of services offered as result of this relationship.

For the first phase, Telekom Malaysia and Cisco have identified the following managed services for the Malaysian market: IP VPNs (IP virtual private networks), Metro Ethernet, IP telephony and security. Managed services help companies significantly lower costs while increasing their ability to adapt to changing business needs and technology capabilities.

Telekom Malaysia is a member of the Cisco Powered Network Program. The Cisco Powered Network mark indicates that Telekom Malaysia delivers its Managed IP VPN service over a network built with Cisco equipment. Cisco Powered Network services are built on high-performance, robust and industry-leading, highly secure IP-based services using Cisco's leading-edge networking solutions.

"Cisco has a strong record of establishing strong ties and commitments to a number of key service providers around the world. This agreement with Telekom Malaysia provides Cisco with an opportunity to contribute to the growth of the Malaysian economy through the provision of advanced IP services. Cisco's technology leadership in IP networking as well as a deep understanding of the enterprise and commercial markets provides service providers such as Telekom Malaysia with many benefits," said David Caspari, vice president, Service Provider Operations, Asia Pacific, Cisco Systems.

Cisco Systems Inc.

Telekom Malaysia Bhd.