SAN JOSE, Calif., Oct. 16, 1994 -- Cisco Systems today announced thecompletion of terms among the thirteen companies comprising the recentlyannounced Japanese joint venture designed to develop and expand theemerging internetworking market in Japan. In addition to Cisco Systems,the new company, Nihon Cisco Systems K.K., includes the leading Japanesemainframe, PC, telecommunication switch and semiconductor manufacturers,and represents the first joint venture of its kind to bring together such abroad and diverse group of investors.
Contracts with all member companies have been concluded as originallyplanned resulting in approximately $40M equity investment by the Japanesepartners (3,943M Yen). Cisco Systems retains 73.2% of Nihon Cisco with thepartners receiving 26.8% share. The $40M investment will remain with NihonCisco Systems K.K. for its future use.
Joint development projects are now underway with various memberpartners, as are a number of reseller and service agreements.Additionally, Nihon Cisco Systems K.K. expects to have a group projectmultimedia testbed plan finalized by the end of 1994. The company alsoexpects to become an independent trading organization, able to set its ownprices in the Japanese market, in the same timeframe.
The joint development projects will cover a variety of differenttechnologies such as router cards, ATM, mainframe connectivity, softwarerouters, network adapter cards, etc. As these products come to market,Cisco Systems will examine the possibility of distributing them in otherparts of the world.
The group multimedia project "will draw on all our investors'strengths, from hardware and software development to systems integrationand installation, to provide a testbed for solving many of the problemsthat face the commercialization of multimedia in the future," said TakMatsumoto, general manager of Nihon Cisco Systems K.K.
Japanese participants in the joint venture are electronics vendorsFujitsu, Hitachi, Mitsubishi Electric, NEC, OKI, Toshiba and Compaq K.K.;system integrators CSK, Fujitsu FIP, and NTT Data; content provider SegaEnterprises; and distributors Itochu Techno-Science, NetOne Systems, andSoftbank.
Cisco Systems,Inc.,headquartered in San Jose, Calif., is the leading global supplier of internetworkingproducts, including routers, bridges,workgroup systems, ATM switches, dial-up access servers, software routersand router management software. These products are used to buildenterprise-wide internetworks linking an unlimited number of geographicallydispersed LANs, WANs and IBM SNA networks. Cisco's Internetwork Operating System (IOS) technology, found in more than 250,000 installed Ciscounitsand in the products of over 20 partners, is the de facto industry standardfor data transmission. In the U.S., Cisco is traded over the counter underthe Nasdaq symbol CSCO. A member of the S&P 500 and Fortune 500, Cisco infiscal 1994 logged sales of $1.2 billion.
Posted: Oct 17 08:59:11 1994
