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Cisco Continues Momentum in SMB Market Adding D&H as Authorized U.S. Distributor

D&H Provides Access to Thousands of New Partners

Feature Article Cisco Continues to Address the Particular Needs of SMBs, Adding D&H as Authorized U.S. Distributor

SAN JOSE, Calif., July 11, 2005 - As part of its continuing commitment to help small and medium-sized businesses (SMBs) succeed, Cisco Systems® today announced it has added D&H Distributing to its list of authorized distributors in the United States. This distribution relationship focuses on accelerating SMB customer adoption of networking technology, combining Cisco® SMB-tailored technology with D&H's commitment to provide superior service and support to the value-added resellers that serve this rapidly growing customer segment.

"As our fastest-growing customer segment and largest market opportunity, the SMB market represents a significant growth opportunity for Cisco and our channel partners," said John DiLullo, vice president, Worldwide Distribution, Cisco Systems. "To accelerate our growth in the SMB market we need to embrace new partners and build new routes to market. D&H is a recognized leader in the SMB market, and they offer us instant access to thousands of resellers that are currently not served by our existing distribution network."

"We continue to strive to deliver a wider selection of products and solutions to our resellers," said Gary Brothers, president at D&H. "With VoIP driving network upgrades and Gigabit Ethernet becoming a viable SMB desktop solution, adding the premier networking vendor is a key strategy in our roadmap toward ongoing growth and success. Cisco shares our commitment to the SMB market and over the past year few vendors have been more active in the SMB market."

Cisco SMB Programs

During the past 18 months, Cisco has made numerous advancements targeted at the SMB market, including the introduction of:

30 new SMB-focused products over a 12-month period, three times more than any other year
SMB-Select partner designation, which in less than a year has 1,200 channel partners enrolled
SMB Support Assistant, a support services offering tailored for the SMB market
Commercial Easy Lease, an SMB leasing program with reduced deal-size threshold for participation and a simplified contract process
Opportunity Incentive Program (OIP), a deal registration program that rewards channel partners for securing incremental SMB business, and currently has 8,000 registered deals worth more than $1 billion at list price
SMB-Class solutions, which combine Cisco products with support services, financing, applications and training

About D&H

D&H is one of America's oldest and largest wholesale products distributors with an impressive 85-year history. D&H distributed one of the first color televisions, one of the first home computers, and one of the first gaming systems. Additional information about the D&H full line of solutions can be obtained at www.dandh.com.

About Cisco Systems

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.

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