News Release

Cisco, IBM Announce Agreement on LAN Switching Technology and Sales

SAN JOSE, Calif., May 5, 1995 -- IBM and Cisco Systems today
May 05, 1995

SAN JOSE, Calif., May 5, 1995 -- IBM and Cisco Systems today announce thesigning of an agreement involving technology transfer, joint productdevelopment and product sales in the area of Workgroup LANswitching.

The new pact expands on a 1994 agreement between IBM and Kalpana, Inc., involving codevelopment and switchingtechnology exchange for Ethernet and Token Ring. This new agreementreflects the satisfaction of both parties with the results of the earlierrelationship.

John Chambers, Cisco CEO, said, "The fact that two key vendors inenterprise networking reached this agreement reflects our desire to providecustomers with the most effective switching solutions possible. Thisagreement complements both companies' existing product lines, as well asrelationships that both have established with other vendors."

B.J. Johnson, general manager of IBM's Networking Hardware Division, said,"Our development agreement has culminated in the delivery of leadershipWorkgroup LAN switching products. This new agreement grants both companiesaccess to the technology and products necessary to provide completesolutions to our respective customers."

This is the latest agreement between Cisco and IBM. The two firmscooperated to develop a Token Ring router card using the high-performance"Spyglass" chip set. Cisco has licensed IBM's ESCON and Bus and Tag channeltechnologies, and used IBM facilities for compatibility testing. Ciscolicenses IBM's APPN source code, and is active in the APPNImplementors'Workshop. Cisco is a member of the NetView/6000 Association, and provides CiscoWorks(TM)applications for that platform. IBM's field serviceorganizations service and support Cisco products. And Cisco recentlyawarded a major manufacturing contract to Celestica, Inc., a subsidiary ofIBM Canada Ltd.

IBM is located in Armonk, New York.

Cisco Systems,Inc. (NASDAQ:CSCO), is located in San Jose, California.

The following are registered tradements of IBM Corporation: APPN, ESCON,NetView.

Posted: May 5 09:12:41 1995