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PRESS RELEASE

Cisco Announces Agreement to Acquire CoreOptics

Acquisition Reinforces Cisco's Commitment to Deliver High-Speed Networking and Enable Service Providers to Meet Growing Network Demands

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CoreOptics

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SAN JOSE, Calif. – May 20, 2010 – Cisco today announced its intent to acquire privately held CoreOptics Inc., a designer of digital signal processing (DSP) solutions for high-speed optical networking applications. Based in San Jose, with the majority of its employee base in Nuremberg and Gerlingen, Germany, CoreOptics will enable Cisco to equip service provider customers with highly advanced 100 Gigabits per second (Gbps) transmission technology to scale their networks to meet the demands of rapidly growing Internet Protocol traffic driven by video, mobility and cloud services. According to Cisco's Visual Networking Index research, global IP traffic will increase fivefold from 2008 to 2013 with a 40 percent compound annual growth rate.

"With this acquisition, Cisco reinforces its commitment to continue to invest in its core networking business and to deliver IP next-generation networks at 100 Gbps and beyond," said Surya Panditi, vice president and general manager, Cisco's Service Provider Access and Transport Technology Group. "We are focused on continuing to deliver an industry-leading portfolio of routing, switching and optical transport systems that enable our service provider customers to better address the ever-present business challenge of managing tight capital and operating budgets while accommodating the tremendous growth in network traffic."

The next phase of innovation in optical networking will be driven by sophisticated modulation formats and advanced DSP technologies. These new capabilities enable the efficient transmission of large amounts of data over existing fiber optic installations. By enabling high speeds across an existing infrastructure, Cisco and CoreOptics will address the challenge facing service providers of accommodating the growth in network traffic while managing tight capital expenditure budgets.

The acquisition of CoreOptics expands Cisco's optical presence in Europe, builds on its existing European operations in Monza, Italy, and will contribute to continued innovation in optical networking. CoreOptics will bring to Cisco a team with strong expertise in digital ASIC design, advanced modulation formats, as well as optical systems, applications and network architecture. Upon completion of the acquisition, CoreOptics employees will become part of the Cisco Service Provider Technology Group and work with Cisco's existing optical engineering teams in Monza, Italy; Bangalore, India; and Richardson, Texas.

Under the terms of the agreement, Cisco will pay approximately $99 million in cash and retention-based incentives in exchange for all shares of CoreOptics. The acquisition is subject to customary closing conditions and is expected to close in the second half of calendar year 2010.

About Cisco Systems

Cisco, (NASDAQ: CSCO), the worldwide leader in networking that transforms how people connect, communicate and collaborate, this year celebrates 25 years of technology innovation, operational excellence and corporate social responsibility. Information about Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com.

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Cisco, the Cisco logo, and Cisco Systems 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. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.

Forward-Looking Statements

This release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including the expected completion of the acquisition and the time frame in which this will occur, the expected benefits to Cisco and continued innovation in optical networking, expansion of Cisco's presence in Europe, and plans regarding the integration of CoreOptics personnel. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including, among other things, the retention of employees of CoreOptics, the ability of Cisco to successfully integrate CoreOptics and to achieve expected benefits, business and economic conditions, growth trends in the optical market and the networking industry, global economic conditions and other risk factors set forth in Cisco's most recent reports on Form 10-K and Form 10-Q filed with the SEC. Any forward-looking statements in this release are based on limited information currently available to Cisco, which is subject to change, and Cisco will not necessarily update the information.

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