SAN JOSE, Calif. -- June 18, 1998 -- Cisco Systems, Inc. today announced it has completed the acquisition of CLASS Data Systems of Ra'anana, Israel and Cupertino, California.

On May 4, 1998, Cisco Systems announced a definitive agreement to acquire privately-held CLASS Data. CLASS Data's software solutions enable policy-based quality of service in Internet Protocol (IP) networks that mix data, voice and video over a single network.

Under the terms of the acquisition, cash and shares of Cisco common stock options were exchanged for all outstanding shares and options of CLASS Data. In connection with the acquisition, Cisco expects a one-time charge against after-tax earnings of between $.02 and $.04 cents per share in the fourth fiscal quarter of 1998.

Cisco Systems

Cisco Systems, Inc. (NASDAQ:CSCO) is the worldwide leader in networking for the Internet. News and information areavailable at http://www.cisco.com.

For more information visit Cisco PR Contacts

###

Cisco, Cisco Systems, and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. in the U.S. and certain other countries. All other trademarks mentioned in this document are the property of their respective owners.

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