SAN JOSE, Calif., Dec. 7, 1994 -- Cisco Systems has completed itsacquisition of Kalpana, Inc., a privately held company that is the leadingprovider of Ethernet switches worldwide.

The acquisition follows an agreement signed Oct.24, 1994 , under whichCisco agreed to acquire all outstanding stock and assume all outstandingemployee stock options and warrants of Kalpana.

Completion of the acquisition was subject to several conditions,including approval of Kalpana shareholders, which was received on December6.

In announcing the Oct. 24 agreement, Cisco Executive Vice PresidentJohn Chambers said the acquisition would expand Cisco's switching productline, which already includes ATM switches andhigh-end FDDI-equipped to include products that optimize network bandwidth forsmall workgroups and individuals. "Kalpana provides great value becausetheir products are both cost-effective and high-performance. And theirwell-established indirect distribution channels are an excellent complementto Cisco's existing sales channels," Chambers said.

Based in Sunnyvale, Calif., with 150 employees, Kalpana is consideredto be the inventor of Ethernet switching. The firm's product line consistsof modular and stackable platforms which extend the usability and datacapacity of existing Ethernet LANs.

Cisco Systems,Inc. is the leading global supplier of enterprisenetworks, including routers, LAN and ATM switches, dial-up accessserversand network management software. These products, integrated by Cisco'sInternetwork Operating System (IOS) link geographically dispersed LANs,WANs and IBM networks. Cisco is headquartered in San Jose, California andin the U.S., is traded under the NASDAQ symbol CSCO.