BEIJING - April 17, 2009 - Cisco today announced the opening of a joint green technology research and development lab with China's renowned Tsinghua University, as part of Cisco's multiyear innovation and sustainability commitment in that country. The lab which is co-led by the Electronic Engineering Department in Tsinghua University and the Cisco China Green Research and Development (R&D) Center will develop network-based technologies and solutions for intelligent urbanisation to support China's long-term strategy of green GDP growth, energy savings and emissions control.

Attending the opening ceremony in Beijing were executives from Cisco and Tsinghua, including; Kang Kejun, vice president of Tsinghua University; John Chambers, Cisco chairman and chief executive officer; Jim Sherriff, Cisco China chairman and chief executive officer; and Thomas Lam, Cisco China vice chairman and president.

"Cisco's innovation initiative and its establishment of a green technology lab are clear examples of our commitment to China, and our focus on the long-term growth potential," Chambers said. "Today's announcement further demonstrates our strategic approach to capturing local innovation, win-win partnerships, and leadership development through collaboration."

In addition, as part of Cisco's prior commitment, the company today announced it will establish a Supply Chain Institute with Fudan University to support China's ongoing development through a jointly designed and delivered world-class educational program. The first of its kind for Cisco in China, the Supply Chain Institute will offer learning and development for leaders of Chinese companies, driving thought leadership in supply chain management and accelerating participants' ability to lead on a global scale.

Underscoring the strategic importance of China to its global operations and the company's determination to deliver on its US$16 billion multiyear investment, Cisco introduced a "cultivated innovation" model aimed at boosting local innovation through capital, technology, process expertise, incubation resources and leadership investments. The model is expected to accelerate time to market for Cisco and its partners and customers as they pursue new local and global market opportunities together.

Cisco intends to allocate US$1 billion of its US$16 billion investment commitment, announced in November 2007 to support this new innovation model. This initiative will underpin Cisco's collaboration with top universities and market-leading entrepreneurs to support programs to develop technologies for intelligent urbanisation, promote growth enterprises, and foster next-generation Internet development.

Cultivated Innovation Model

Cisco has a proven track record in both organic R&D and in acquisition integration. The new model in China will spur even greater innovation through cultivation and collaboration. It is designed to expand the capabilities of Cisco and its partners to pursue new local market opportunities with greater speed, agility and market relevance.

The cultivated innovation model initially focuses on three major areas: intelligent urbanisation, new business model initiatives for growth enterprises, and next-generation Internet, including video and mobility, which align closely to the country's agenda and priorities.

Intelligent urbanisation collaboration with Tongfang:

• Cisco intends to collaborate with Tongfang to jointly explore and create new markets and business models for intelligent urbanisation in China.
• As a leader in systems integration for connected real estate and transportation in China, Tongfang's local market expertise will play a significant role in the development of joint localized products and solutions based on Tongfang's software and hardware platform and IP-enabled control devices integrated with Cisco technologies.
• Intelligent Urbanisation is Cisco's recently launched global initiative to help cities use the network as the platform for integrated city management, better quality of life for citizens, and economic development.

Investment in video development with DigiVision:

• In early March, Shanghai DigiVision announced an investment from Cisco that includes access to select Cisco video technologies.
• DigiVision is focusing on the design of an open, interactive, HD digital cable TV platform that will support new value-added business models to facilitate Shanghai's plan for cable TV digitization.
• The model for content digitization in Shanghai has the potential to be replicated in other cities and regions in China.

Enterprise Growth Support with Ambow:

• Cisco is working with Ambow, a leading provider of e-learning technologies and education services in China, to explore innovative business models for connected cities and connected schools.
• These initiatives are aligned with China's priorities of preparing college graduates for job readiness, developing replicable business process outsourcing skills, and instigating 21st-century education in earthquake-stricken areas of Sichuan.
• Cisco has been an early stage investor in Ambow since 2006, in recognition of the need for sustainable skills development in the country.

"Cultivated innovation through collaboration and partnership is critical to tapping new opportunities and helping businesses and economies to sustain growth during the current economic challenge and to emerge stronger afterwards," Sherriff said. "At Cisco, innovation goes beyond technology, products or services. For us, working with our partners and customers in China also includes advances in business models, business processes and go-to-market strategies as we create new offerings for local and global markets."