News Release

Cisco Systems Rescinds Stock Repurchase Program

SAN JOSE, Calif., October 14, 1996 - Cisco Systems Inc.
Oct 14, 1996

SAN JOSE, Calif., October 14, 1996 - Cisco Systems Inc. today announced that its Boardof Directors has rescinded the company's stock repurchase program, due to uncertaintyover recent interpretations by the Securities and Exchange Commission.

Currently, the company has authorization to repurchase up to 16.8 million shares to be usedto partially provide for the company's common stock requirements for its employee stock plans.Due to uncertainties regarding the Securities and Exchange Commission1s interpretation ofStaff Accounting Bulletin 96 (SAB 96), on October 9 Cisco's Board voted to rescindauthorization to repurchase the 16.8 million shares. This action was taken to avoid anypotential issues regarding the pooling of interest accounting treatment that Cisco frequentlyused in its acquisitions of other companies.

Cisco has repurchased approximately 7.2 million shares between 1994 and 1996, but has not repurchasedany shares since April 1996, due to restrictions associated with transactions accounted for as apooling of interest.

CiscoSystems (NASDAQ:CSCO) is the leading global supplier of internetworking solutions for corporate intranets and the global Internet. Cisco'sproducts -- includingrouters, LAN and WAN switches, dial-up access servers and network managementsoftware -- are integrated by Cisco IOSTMsoftware tolink geographically dispersed LANs, WANs and IBM networks. Company news andproduct/service information are available at World Wide Web site Cisco is headquarteredin San Jose, Calif.

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This release may consist of forward-looking statements that involve risks and uncertainties. These statementsmay differ materially from actual future events or results. Readers are referred to the documents filed byCisco with the S.E.C., specifically the most recent reports on Form 10-K and 10-Q, which identify importantrisk factors that could cause actual results to differ from those contained in the forward-looking statements.

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