News Release

Cisco Completes Acquisition of Skystone, Ardent and Global Internet Software Group

Recent Deals Highlight Voice/Data Integration and Windows NT(TM) Security Efforts
Jul 28, 1997

SAN JOSE, Calif. - July 28, 1997 - Cisco Systems, Inc. today announced it has completed theacquisitions of Skystone Systems Corp., Ardent Communications Corp. and Global InternetSoftware Group.

On June 9, Cisco Systems, Inc. announced a definitive agreement to acquire privately-heldSkystone Systems Corp. of Ottawa, Ontario, Canada. Skystone is an innovator of moving InternetProtocol (IP) traffic over high-speed Synchronous Optical Networking/Synchronous DigitalHierarchy (SONET/SDH) technology. Under the terms of the acquisition, approximately 1 millionshares of Cisco common stock worth nearly $66.5 million (based upon Cisco's June 9 closingprice of $66.50) and $22.6 million cash were exchanged for all outstanding shares, warrants andoptions of Skystone. In connection with the acquisition, Cisco expects a one-time chargeagainst after-tax earnings of between 8 and 13 cents per share in the fourth fiscal quarter of1997.

On June 24, Cisco Systems, Inc. announced a definitive agreement to acquire privately-heldArdent Communications Corp. Previously, Cisco and Sequoia Capital held minority equity stakesin Ardent. San Jose-based Ardent is a pioneer in designing combined communications support forcompressed voice, LAN, data and video traffic across public and private Frame Relay and ATMnetworks. Under the terms of the acquisition agreement, shares of Cisco common stock worthapproximately $156 million were exchanged for the outstanding shares and options of Ardent. Inconnection with the acquisition, Cisco expects a one-time charge against after-tax earnings of23 cents per share in the fourth fiscal quarter of 1997.

On June 24, Cisco Systems, Inc. announced a definitive agreement to acquire Global InternetSoftware Group, a wholly owned subsidiary of Global Internet.Com Inc. based in Palo Alto, CA.Cisco also took an undisclosed minority equity interest in Global Internet.Com. GlobalInternet Software is a pioneer in the Windows NT network security marketplace. Under the termsof this acquisition, approximately $40.25 million cash was exchanged for all outstanding sharesof Global Internet Software. In connection with the acquisition, Cisco expects a one-timecharge against after-tax earnings of between 2 and 3 cents per share in the fourth fiscalquarter of 1997.

Cisco Systems

Cisco Systems, Inc. (NASDAQ: CSCO) is theworldwide leader in networking for the Internet. at

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Cisco, Cisco Systems, and the Cisco Systems logo are registered trademarks of CiscoSystems, Inc. in the U.S. and certain other countries. Microsoft is a registered trademark andWindows NT is a trademark of Microsoft Corporation. All other trademarks mentioned in thisdocument are the property of their respective owners.

This release may contain forward-looking statements that involve risks and uncertainties. Thesestatements may differ materially from actual future events or results. Readers are referred tothe documents filed by Cisco with the SEC, specifically the most recent reports on Form 10-Kand 10-Q, which identify important risk factors that could cause actual results to differ fromthose contained in the forward-looking statements, including potential fluctuations inquarterly results, dependence on new product development, rapid technological and marketchange, acquisition strategy, manufacturing risks, risks associated with the Internetinfrastructure, volatility of stock price, financial risk management and future growth subjectto risks.