News Release

Cisco Systems Demonstrates How to Conduct Business on the Internet

Company Leverages Internet Expertise to Expand its Electronic Business Model
Dec 10, 1996

NEW YORK, New York - December 10, 1996 - Cisco Systems, Inc. today announced enhancements to its electronic business model that further leverage the capabilities of the Internet to service its customers, employees and partners. With the addition of Cisco's Internetworking Products Center (Cisco IPC), direct customers and partners can now price, configure and order networking equipment over the Internet.

The explosive growth of the Internet has led to its acceptance as a practical tool for business. By understanding this paradigm shift and leveraging its Internet expertise, Cisco has expanded its electronic business model to enhance communication and streamline operations, thereby improving business practices and increasing customer satisfaction.

"Cisco's model demonstrates how the Internet is moving from a passive publishing medium to an interactive business environment," said Michael Sullivan-Trainor, an analyst at International Data Corp. "In order to remain competitive, all companies must have a strategy for sales and support over the Internet, allowing customers access to the tools for service and support anytime and anywhere in the world. To accomplish this successfully, they should look at Cisco's model as the benchmark."

Cisco pioneered use of the Internet as a service and support tool for customers and partners, and has been leveraging the Internet since 1991 to handle customer inquiries and to provide technical support. Many corporations today use the Internet primarily as a marketing vehicle or simply to disseminate information. Few corporations have matched Cisco's ability to create a comprehensive electronic business model that enables more engaging business relationships with customers and partners.

Cisco Connection Family

Today, through the Cisco Connection family of interactive, electronic services, Cisco leverages electronic media to conduct interactive business relationships with its global customers, partners and employees. The Cisco Connection family is comprised of several services including Cisco Connection Online (CCO) and Cisco Employee Connection.

"Since establishing our Internet-based business model, we've seen improved customer satisfaction and enhanced worker productivity. We also expect to save over $250 million a year in business expenses," said Pete Solvik, Cisco's chief information officer. "Logins to CCO have increased significantly, from 5,000 per month in 1993 to over 400,000 per month today. More than 75 percent of registered CCO customer requests are now handled online, and Cisco's customer satisfaction approval rating has increased 30 percent over the past few years. We believe our model showcases how to use the Internet and intranets to maintain interactive, engaging business relationships with customers, employees and partners."

Cisco Connection Online

CCO, Cisco's external Web site, provides registered customers, partners and employees with immediate, open access to Cisco's resources, information and systems, and its user growth has continued to increase at an average rate of 10 percent per month. Available worldwide 24-hours-a-day, seven-days-a-week, CCO provides users with access to a wide variety of information and applications, including product and technical information, assistance from Cisco technical support engineers, software downloads and electronic commerce services. The information and applications are linked to Cisco's internal operational systems and databases. For example, users are able to access Cisco's "troubleshooting engine," an expert agent system that enables users to resolve networking problems. The "open forum" feature allows users to collaborate with internetworking experts from around the world.

Cisco Internetworking Products Center

Cisco IPC is the newest addition to CCO and is available to all Cisco direct customers and partners, allowing them to price, configure, route and submit electronic orders for Cisco internetworking products. In its first four months of operation, Cisco has already received orders totaling $75 million through Cisco IPC. Cisco IPC is part of CCO's Cisco Marketplace - Cisco's "virtual shopping center." In addition to Cisco products and services, Cisco Marketplace also allows online visitors to purchase promotional items and registered users to purchase training information, sales and support information and technical documentation.

Offering improved service, reduced product delivery times and streamlined transactions, Cisco IPC also alerts the user of missing elements in product configurations, ensuring an efficient and accurate order placement process. Additionally, Cisco IPC allows users to electronically route orders through all appropriate departments within the user's organization.

Cisco Employee Connection

Cisco Employee Connection, Cisco's intranet site, provides information and interactive applications for all employees. For example, employees are able to make travel arrangements, submit expense reports, view human resource documents, report computer or telephone problems to the company's technical response center, obtain information on customers and accounts, and access a variety of other corporate information.

Cisco Connection Online and Cisco IPC are available on the World Wide Web at

About Cisco

Cisco Systems (NASDAQ: CSCO) is the leading globalsupplier of enterpriseinternetworking solutions,including routers, LAN and ATM switches, dial-upaccess servers and network management software. These products, integratedby the Cisco IOSTM software, linkgeographically dispersed LANs, WANs andIBM networks. Cisco news and product/service information are available atWorld Wide Web site Cisco is headquartered in SanJose, CA.

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