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Cisco Finalizes Agreement to Acquire Vihana, Inc.

SAN JOSE, Calif., May 23, 2005 - Cisco Systems® today announced it has finalized the acquisition of privately-held Vihana, Inc. of Sunnyvale, Calif. Vihana is focused on the development of efficient semiconductor solutions for the computer and communications industry.

Cisco's right to acquire Vihana, and a summary of the transaction's basic terms, were disclosed in Cisco's Form 10-Q filed on February 22, 2005. Under the terms of the agreement, Cisco will pay approximately $30 million in cash and options for Vihana. Vihana was founded in August 2001 and has 27 employees.

Cisco Systems, Inc. (NASDAQ: CSCO), the worldwide leader in networking for the Internet, celebrates 20 years of commitment to technology innovation, industry leadership, and corporate social responsibility. Information about Cisco can be found at http://www.cisco.com. For ongoing news, go to http://newsroom.cisco.com.

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Cisco, Cisco Systems, and the Cisco Systems logo are registered trademarks or trademarks of Cisco Systems, Inc. and/or its affiliates in the United States and certain other countries. All other trademarks mentioned in this document 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. This document is Cisco Public Information.

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