News Release

Cisco and Madge Strengthen Strategic Partnership

Cisco to License High Density ISDN Switching Technology from
Jan 29, 1996

Cisco to License High Density ISDN Switching Technology from Madge; Madge to License IOS from Cisco

San Jose, Calif., January 29, 1996--Madge Networks (NASDAQ: MADGF), aleading, worldwide supplier of switched networking solutions, and CiscoSystems, Inc., today announced that the two companies have strengthenedtheir five-year strategic partnership by signing a binding letter ofintent leading to a new joint development and technology licensingagreement. According to the letter of intent, Cisco will license highdensity ISDN switching technology from Madge to deploy as a fundamentalbuilding block of a high-capacity universal access server that thecompanies will jointly develop to address the carrier and InternetService Provider (ISP) market. In addition, Madge will license the CiscoInternetwork Operating System (Cisco IOS(tm)) from Cisco forintegrationinto a future WAN AccessSwitch(tm). Madge will have both the ISDN switchingtechnology and AccessSwitch as a result of its acquisition of TeleosCommunications, Inc., also announced today.

"Today's announcement is yet another step in strengthening our five-yearrelationship," said John Chambers , presidentand CEO of Cisco. "We are teaming with Madge to address another growth market, the Internet.Madge's high density ISDN switching technology will be an importantelement in enabling Cisco to build products ideally suited for thismarket."

According to Robert Madge, president and CEO of Madge Networks, "Thisextension of our long-standing relationship with Cisco leverages one ofour key technologies into the Internet marketplace through Cisco. Atthe same time, we can offer our large enterprise customers the additionalfunctionality of Cisco IOS as part of the end-to-end switched networksthey will deploy for the integrated delivery of data, voice and video tothe desktop."

Today's announcement expands on a pact inaugurated in December 1990under which Cisco licensed Madge's Fastmac high-performance Token Ringtechnology for use on its line of routers. In March 1995 thetwo companies announced the broadening of their relationship to include anagreement whereby they would both market a Token Ring switch developed byMadge, and Cisco licensed Madge's advanced RingRunner switching siliconfor use in Cisco's Catalyst switch product line.

Cisco Systems, Inc. (NASDAQ:CSCO) is the leading globalsupplier ofinternetworking solutions,including routers, LAN and ATM switches,dial-up access servers, and network management software. These products,integrated into the Cisco IOS software , linkgeographically dispersedLANs, WANs and IBM networks. Cisco Systems news and product/serviceinformation are available at World Wide Web site Systems is headquartered in San Jose, Calif.

Madge Networks is a leading, worldwide supplier of switched networkingsolutions for the enterprise. The company is recognized for its customersupport without limits, technology excellence and end-to-end expertise innetworking. Madge, an originator of ATM, Ethernet and Token Ring softwareand silicon technology, offers a broad range of products based on its owntechnology, including switches, modular and stackable hubs, enterprisenetwork management software and adapter cards. The company serves itsmultinational customer base from more than 20 countries worldwide fromfive major business centers located in Hong Kong, London, San Jose,Tel Aviv and Tokyo.

Posted: Wed Jan 31 13:27:54 PST 1996