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PRESS RELEASE

Cisco Ships Half a Million Integrated Services Routers and Achieves Fastest Product Ramp in Company History

Cisco helps Pep Boys increase network flexibility, resiliency and security at its 593 retail locations

SAN JOSE, Calif., October 3, 2005 - Cisco Systems today announced that it has reached a major milestone by shipping its 500,000th Cisco integrated services router to Pep Boys, the leading automotive aftermarket retailer and service chain in the United States. Pep Boys will use this advanced networking technology to reduce register transaction time and improve customer service processes. This milestone marks the fastest product ramp in Cisco history.

"Since Cisco introduced the integrated services router portfolio, we've seen tremendous demand from customers worldwide. Users are realizing up to a 40 to 50 percent decrease in set-up costs and deployment times with these new Cisco routers," said Ian Pennell, senior vice president, Cisco Access Business Unit. "In less than one year, Cisco has shipped 500,000 routers to thousands of customers of all sizes spanning vertical markets including retail, healthcare, real estate, automotive, financial, government and education. This strong momentum has further reinforced Cisco's leadership in the global routing market."

It took Cisco six months to ship the first 100,000 integrated services routers, and another six months to reach 500,000. This rapid adoption proves that organizations want to integrate security, voice and wireless services concurrently into their network while maintaining high levels of performance. This helps allow them to protect, optimize and enhance their businesses while investing for future needs.

"This milestone demonstrates Cisco's commitment to meeting the needs of its customers. The Cisco integrated services routers are the first in the industry to provide customers of all sizes with fast, highly secure, voice, video and data services," said Zeus Kerravala analyst of Yankee Group. "They meet the growing demands of customers looking for a more flexible, cost-efficient and easy-to-deploy network."

Pep Boys Chooses Cisco Integrated Services Routers to Modernize their Business

Pep Boys has equipped each of its 593 retail locations with a Cisco 2811 integrated services router, designed to meet the performance and density requirements to deliver new levels of security, concurrent with other high-performance services. Pep Boys also deployed quality of service features on the routers to prioritize real-time credit card transactions and authorization traffic. This reduces transaction time at the register and enables Pep Boys to improve their customer service. Pep Boys is also building the foundation to support other new embedded services such as IP Telephony, call management and voice mail.

"At Pep Boys, we consistently evaluate ways to enhance our customer experiences and optimize access to information. We want to connect all of our retail stores and provide access to inventory and corporate applications. Additionally, we want customers to have the best possible experiences in a Pep Boys store," said Rich Quinney, systems manager for telecommunications services at Pep Boys. "The Cisco 2811 integrated services routers can help us do that. The most important capabilities we plan to incorporate such as security, QoS and voice are already built into the box."

Cisco Channel Partners and Service Providers See Broad Reach

"We've seen a strong demand from our customers for the new Cisco integrated services routers," says Jim Teter, president of Avnet Enterprise Solutions, a Cisco Gold Certified Partner. "The uptake has been so rapid because these routers are helping customers enable the voice and security functions in the integrated services router platform, especially branch offices or single site deployments. For instance, Fred Loya, an automotive insurance company, and SXC Health Solutions, a healthcare transaction processing company, are looking to the Cisco integrated services routers to provide integrated security capabilities such as intrusion prevention features, while setting the stage for IP telephony."

"In addition to delivering a great new product, Cisco's partner programs have helped us grow our business, build our expertise and increase customer satisfaction," adds Teter.

In Europe, Belgian service provider Belgacom is helping deliver IP communications services to the Belgian small and medium-sized businesses with Cisco Call Manager Express on the Cisco integrated services router. New customers of the service include Lambrechts Sanitair, a plumbing and heating firm, and Jean-François Peirard, a firm of solicitors in the community of March-en-Famenne.

Additionally, many more Cisco customers such as Tinker Federal Credit Union, the largest credit union in Oklahoma, and IdleAire Technologies, a Tennessee-based company that provides a suite of advanced truck stop electrification services to the trucking industry nationwide, have chosen the Cisco integrated services routers to modernize and enhance their businesses, improving both employee and customer experiences. For more information on Cisco integrated services router customers, please visit: http://newsroom.cisco.com/dlls/2005/ts_100305.html.

About Pep Boys

Pep Boys has 593 stores and over 6,000 service bays in 36 states and Puerto Rico. Along with its vehicle repair and maintenance capabilities, the company also serves the commercial auto parts delivery market and is one of the leading sellers of replacement tires in the United States. Customers can find the nearest location by calling 1-800-PEP-BOYS or by visiting pepboys.com.

About Cisco Systems

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

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Cisco, Cisco Systems, the Cisco Systems logo, and Cisco IOS are registered trademarks of Cisco Systems, Inc. in the U.S. and certain other countries. All other trademarks mentioned in this document are the property of their respective owners.

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