Cisco and Living PlanIT Announce Alliance to Develop New Business Models for Smart+Connected Communities

PAREDES, PORTUGAL--(Marketwire - May 13, 2011) - Cisco (NASDAQ: CSCO) and Living PlanIT today announced a strategic alliance and the signing of a definitive framework agreement to develop new business models for city management, through the use of networking technology, to advance sustainable urban living. This collaboration between Cisco and Living PlanIT is based on a shared vision of revitalizing communities and accelerating innovation in urban development.

Through this agreement, the companies intend that PlanIT Valley, near Paredes in Northern Portugal, will become Europe's largest sustainable development, deploying Cisco® Smart+Connected Communities solutions. Living PlanIT today appointed Cisco as the master planner for information technology and communications design and architecture for PlanIT Valley; and the companies announced that they will explore integrating the Living PlanIT technology platform with Cisco's networking technology. As a result of today's announcement, the two companies moved a step closer to establishing a technology innovation zone and a research and development center in PlanIT Valley in Paredes.

Living PlanIT will also initially collaborate with Cisco's services organization to develop a design for applying Smart+Connected Communities technology in PlanIT Valley. Once the architecture has been designed, Living PlanIT will work with Cisco teams and partners to implement a network infrastructure based on Cisco technology as the platform for urban sustainability in PlanIT Valley.

The companies will work to establish a Global Innovation Center in PlanIT Valley, which would aim to serve two purposes: first to provide research capabilities in close proximity to the site of implementation for real-time development of solutions, and second to serve as a center of global expertise by applying collaborative and networked innovation as the basis for other global projects.

The proposed new research facility is expected to explore how a connected sensor network can be used in the management of buildings and energy, electric vehicles, smart-grid monitoring, and smart metering. These sensors monitor and control temperature, vibration, pressure, power, sound, and video, amongst others.

PlanIT Valley itself represents the first large scale use of Internet Protocol (IP) to connect these so called "smart objects," including cameras and video-enabled devices, which will in turn lead to greater volumes of video traffic passing across the network. Engineers would likely also investigate the potential for integrating renewable energy sources into the smart management platform of the city.

Cisco will also investigate how Living PlanIT's automotive platform can be integrated into Cisco Smart+Connected solutions. As a priority first step, the companies will look at ways to embed fast sensor decision logic software from Living PlanIT into the network.

The collaboration announced today paves the way for PlanIT Valley to play a leading role in research into the widespread deployment of the "Internet of Things" and its use in sustainable urban development. The Internet of Things is a concept in which a wide range of physical objects are easily connected to the Internet. This allows "smart objects" to then interact intelligently with their external environment. The emerging phenomenon of the Internet of Things will become globally pervasive; with the number of connected devices predicted to grow to many billions in the coming years.

In 2009, the two companies began working together to develop a model for greenfield and urban revitalization as well as to accelerate innovation in urban development, operations and community services. This collaboration with Living PlanIT helps Cisco to extend its capabilities with a control systems platform, increasing Cisco's relevance in the new market sector of smart cities.

SUPPORTING QUOTES

• Wim Elfrink, chief globalisation officer and executive vice president, Emerging Solutions, Cisco:
  "Today we celebrate two significant milestones in driving social, environmental and economic sustainability through Cisco's Smart + Connected Communities deployment as the platform for Living PlanIT's innovation zone. With the establishment of this strategic alliance in Portugal and Cisco's appointment as the master planner for the communications architecture of PlanIT Valley, we stand center stage in the global spotlight to enable the creation of new, sustainable industries and to open up new revenue opportunities for cities and countries around the world."

• Steve Lewis, CEO, Living PlanIT:
  "Living PlanIT is pleased to be a strategic partner of Cisco as we collaborate across industries and combine technologies to enable a new generation of intelligent cities and urban development. These technologies will improve quality of life for citizens and industry while preserving the environment and natural resources.
  
  The Living PlanIT Urban Operating System (UOS) converges cloud computing, deep sensing, simulation and analytics with the very fabric of buildings and infrastructure. The integration of the Living PlanIT UOS sensing control platform with Cisco's network technologies would provide a rich framework for the incorporation of partner technologies and solutions and enable the citizen to manage life events and data.
  
  Together, and working in collaboration with our partners, these technologies will become critical enablers to the solutions that harmonize economic and social development with the environment in markets throughout the world.
  
  Today's announcement validates PlanIT Valley as the world center for research and development of urban technologies."

• Celso Ferreira, president of Municipality of Paredes:
  "As President of the Municipality, I am delighted and honoured to present such a significant agreement, which is an historic achievement for the municipality of Paredes, as well as a major milestone in the development of Portugal. It is a tribute to our country that these two major international companies believe in the talent, the technical and language skills, the ability to collaborate and the ambition to succeed of the people of Portugal. With this agreement new opportunities are opening to us, especially in this region, to create a set of high value jobs that will allow the development of an entire local and international eco-system to bring new opportunities to our young generation."

• Prof. João Barros, Universidade do Porto:

  "Universidade do Porto is deeply committed to the PlanIT Valley project led by Living PlanIT and Cisco in partnership with world leading companies and research institutions. As the largest and highest ranked university in the country, U. Porto trains thousands of young graduates in science and technology, nurturing a critical mass and community of scientists and researchers, who are attaining international recognition for their world-class research. As a city-scale living lab, PlanIT Valley offers stunning opportunities for understanding and developing the wide range of urban technologies and services that will pave the way for the smart city of the future. In the process, a large ecosystem of companies is emerging, which can leverage and boost the talent, knowledge, and entrepreneurship that characterizes U. Porto's faculty, staff and students. Our close cooperation with Living PlanIT could therefore not have come at a better time. Celebrating the centennial anniversary of U. Porto, we look forward to our role as the academic arm of PlanIT Valley, which we envision as the future center of gravity for smart city research, knowledge and collaboration with partner companies, universities and research labs from all over the world."

SUPPORTING RESOURCES

• Cisco Smart+Connected Communities:
  http://www.cisco.com/go/smartconnectedcommunities
• Blog: "The Internet of Things" takes a step forward with new IPv6 routing protocol http://blogs.cisco.com/news/internet-of-things/
• Cisco Connected Energy solutions
  http://www.cisco.com/go/smartgrid

About Living PlanIT
Living PlanIT S.A. is a technology company enabling the development of innovative, intelligent sustainable urban-scale environments. The company brings together people, industry and educational institutions to create innovation cities where emerging technologies are developed, perfected and experienced. Information about Living PlanIT can be found at www.living-planit.com

About Cisco
Cisco (NASDAQ: CSCO) is the worldwide leader in networking that transforms how people connect, communicate and collaborate. Information about Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com. Cisco products in Portugal are supplied by Cisco International Limited, a wholly-owned subsidiary of Cisco Systems, Inc.

Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco's trademarks can be found at www.cisco.com/go/trademarks. Third-party trademarks mentioned 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.

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