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Technology Stocks : United Pan-Europe Communications - UPC (UPCOY)

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To: Neil H who wrote (65)5/11/1999 9:45:00 AM
From: Neil H  Read Replies (1) of 95
 
Priority Telecom Launches
International Voice Over Internet
Protocol -VoIP- Backbone

Cisco chosen as networking products partner in rollout to connect Oslo,
Paris, and Vienna

AMSTERDAM, Netherlands--(BUSINESS WIRE)--May 10, 1999-- Priority Telecom, the
competitive local exchange carrier (CLEC) and integrated telephony services division of United
Pan-Europe Communications (UPC) (NASDAQ:UPCOY - news), has today announced the first
phase implementation of its international telecommunications network strategy. This phase of
development will connect Priority Telecom switches located in Oslo, Norway; Paris, France; and
Vienna, Austria, utilizing the Cisco family of router and Voice over Internet Protocol (VoIP)
products. The interconnection of the switches will allow Priority Telecom to take the full advantages
of IP technology in maximizing the utilization of the existing backbone while increasing the least cost
routing ability for the company's international traffic.

Jeff Ross, COO of Priority Telecom, said: ''It is extremely important that we implement solutions
that position Priority Telecom along the leading edge of telecom technology. Our ability to more
effectively utilize existing bandwidth while maintaining a high quality of service for our customers is
vital to our continued success. Cisco was chosen for our first phase implementation because it met
these key requirements and has a track record for delivering quality new-generation products.''

Paul Mountford, Cisco's vice president of service provider operations in Europe, Middle East and
Africa, added: ''Priority Telecom is in the vanguard of 'New World' telecoms companies who are
building IP-based networks. By making Cisco's IP platform part of its architecture, Priority Telecom
will be able to generate new revenues, achieve a stronger competitive position, and capture
operational cost efficiencies.''

The international backbone being deployed will eventually connect all of Priority Telecom's switches
and key points-of-presence across Europe and the United States. The locations are being linked
over the network operated by UPC's broadband division, chello. chello's IP backbone network,
called Aorta, became operational in November of 1998 and also uses state-of-the-art technology
provided by Cisco.

Savings generated through the use of the new technology and greater purchasing power on
international traffic will be translated into more cost effective and innovative products for Priority
Telecom's residential and business customers. Completion of phase one of the network
implementation is expected by June 15th of this year.
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