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PRESS RELEASE

U.S. Robotics and Cisco Agree to Strategic Technology and Marketing Relationship

SKOKIE, Ill., -- January 16, 1995 -- U.S. Robotics, Inc. (NASDAQ: USRX)and Cisco Systems (NASDAQ: CSCO) today announced plans to develop astrategic marketing and technical relationship that will lead to theintegration of Cisco's InternetworkOperatingSystem (IOS) into platformsdesigned by U.S. Robotics to create a range of network communicationsproducts.

Today's announcement marks the beginning of a long-term relationship,covering technology development, integrated product development, OEM(original equipment manufacturer) manufacturing by U.S. Robotics for Ciscoand in the future, reciprocal sales and marketing.

The two companies plan to announce specific integrated products thatwill combine Cisco's remote access server technology with U.S. Robotics'modem pool and Enterprise Network Hub platforms.

"The strength of each company in its market gives this relationshipsignificant impact," said Jonathan Zakin, U.S. Robotics executive vicepresident. "And the strengths that we bring to each other are key -- bothcompanies have excellent research and development talent, strong sales andmarketing and consistent future visions that will result in some of themost powerful network communications solutions available."

"The relationship underscores the power of U.S. Robotics' sophisticatedcommunication systems and the advanced architecture of Total Control,"added Zakin. "Our ability to integrate Cisco's technology highlights ourengineering expertise and our strength as a systems company."

"The U.S. Robotics relationship extends the Access by Ciscoproductthrust, begun last year," said Kevin Kennedy, director of Cisco's remoteaccess sector. "This new partnership will produce end-to-end solutions thatleverage the ubiquity of Cisco's IOS in public and private internetworks."

Relationship Results In Winning Solutions for Customers

For U.S. Robotics customers, the new alliance will provide the abilityto add Cisco's remote access and internetworking functionality to existingplatforms. Cisco customers will benefit by having access to a highlyintegrated router/dial-up solution. The combination of U.S. Robotics andCisco technology ensures that customer solutions will be based ontime-proven, market tested technology. It also provides completeinteroperability with the installed base of U.S. Robotics and Ciscoproducts.

Cisco and U.S. Robotics to Preview First Product Concept at ComNet

The companies' first product concept involves the integration of theCisco 2500Series Access Server into U.S. Robotics' Total ControlEnterprise Network Hub. The resulting product would combine Cisco's coreaccess server technology and Internetwork Operating System (IOS) softwarewith U.S. Robotics' powerful dial-up communications capabilities, providinga complete, dial-in remote access solution in a single chassis.

A prototype of this product will be exhibited at the upcoming ComNetindustry conference in Washington, D.C. The prototype will merge thepowerful integrated T-1 and modem technology in U.S. Robotics' EnterpriseNetwork Hub with Cisco's technology for remote node access, routing,terminal services and protocol translation. The companies will announcefurther details in the first calendar quarter of 1995, including productpricing, availability andtechnical specifications.

In the past, customers would have to cable together channel banks,CSU/DSU equipment, modems, routers and terminal servers for a similarsolution, creating a management nightmare and multiple points of failure.The strength of U.S. Robotics' Enterprise Network Hub, combined with Ciscotechnology, is that it integrates these components into a single chassis,solving the problem of enterprise connectivity by bringing leadingtechnology from two major industry vendors into a single platform.

U.S. Robotics, Inc. is a leading designer, manufacturer and marketer ofdata communications systems and products. Both corporate headquarters andmanufacturing operations are based in Skokie, Illinois. U.S. Robotics ownsand operates U.S. Robotics Ltd. in Slough, England, U.S. Robotics, s.a. inVilleneuve d'Ascq, France and P.N.B. s.a., based in Suresnes, France. Thecompany markets its products to business, industry, government agencies andoriginal equipment manufacturers, and to end-users through the personalcomputer distribution channel.

Cisco Systems,Inc., headquartered in San Jose, Calif., is the leadingglobal supplier of enterprisenetworks, including routers, LAN andATM switches, dial-up access servers and router management software. Theseproducts, integrated by Cisco's Internetwork OperatingSystem(IOS), link geographically dispersed LANs, WANs and IBM SNA networks.

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