SAN JOSE, Calif., June 6, 1995 -- Cisco Systems has created five distinctbusiness units that reflect its major networking product groups, and hasnamed a vice president/general manager to head each group.

Each of the five business units -- Workgroup, ATM High End, Access, Coreand IBM Internetworking -- will have its own marketing and engineeringorganization. The business unit structure formalizes a product sectorgrouping that has emerged with the company's expansion into new businessareas and its acquisition over the past two years of several smaller firms.

"The networking market continues to change dramatically, with many small,aggressive players emerging to address key market sectors," said JohnChambers , Cisco president and CEO. "By forming business units thatfocus onthese sectors, we can maintain a critical balance between a large, powerfulorganization and a smaller entrepreneurial one. We will continue toleverage our economies of scale in such areas as manufacturing, sales andsupport, while empowering defined groups to be fast on their feet in termsof product development and time to market."

The five business units and their vice president/general managers, allreporting directly to Chambers, are:

• Workgroup ,including all LANswitching,ATM workgroup and adapter products from the former Crescendo Communications and Kalpana,Inc., acquired by Cisco in September1993 and December 1994,respectively. The unit is headed by Mario Mazzola, who had been vice president of the existing Cisco Workgroup Business Unit, which previously had included only Crescendo.

• ATM High End, including enterprise ATM switchproducts from the former LightStream Corp., acquired byCisco in January 1995 . The unit is headed by Paul Lazay, former president and CEO of Telco Systems, who joined Cisco earlier this month .

• Access ,including all remote-access products: stand-alone routers, dial-up access servers, and software-based routers from the former Newport Systems Solutions, acquired by Cisco inAugust 1994 . The unit is headed by Don Listwin, who had previously been Cisco's vice president of marketing.

• Core, including Cisco's traditional high-end Cisco 7000 seriesbackbone routers, as well as strategic alliances focusing on the synergies between backbone routing, switching technologies and telecommunications services. The unit is headed by Frank Marshall, who had been Cisco's vice president of engineering.

• IBM Internetworking, including routers and software products designed to integrate existing IBM-based computer networks with local- and wide-area networks. The unit, based in Research TrianglePark, N.C., is headed by Selby Wellman, former CEO of FaxAmerica and a 15-year veteran of IBM, who joined Cisco earlier this month .

In addition, Cisco has redefined its centralized engineering and marketingorganization to be responsible for the Cisco InternetworkOperatingSystem (tm) (Cisco IOS(tm)) and network management products. Headingthisteam will be Stu Phillips, promoted from director of IOS to vice presidentof engineering; and a new marketing vice president yet to be named. Bothwill report to Chambers.

Chambers also announced the promotion of Ed Kozel, former vice president ofbusiness development, to the additional role of chief technical officer.Reporting to Chambers, Kozel is responsible for strategic relations,business development and network consulting. Charles Giancarlo, formerlyvice president of product management and corporate development for Kalpana,has been named director of business development, reporting to Kozel.

Cisco Systems,Inc. is the leading global supplier of enterprisenetworks,including routers, LAN and ATM switches, dial-up access servers and networkmanagement software. These products, integrated by the Cisco InternetworkOperating System (Cisco IOS) link geographically dispersed LANs, WANsandIBM networks. Cisco is headquartered in San Jose, Calif., and in the U.S.is traded under the NASDAQ symbol CSCO.