News Release

Cisco Systems to Acquire Maxcomm Technologies

New Internet Technology to Bring High-Speed Data and Voice Lines to Consumers
Aug 18, 1999

SAN JOSE, Calif. -- August 18, 1999 -- Cisco Systems, Inc. today announced a definitive agreement to acquire privately-held MaxComm Technologies, Inc. of Chelmsford, MA. MaxComm is a leading developer of broadband Internet technology that brings data and multiple voice lines to consumers. This acquisition furthers Cisco's strategy to collaborate with its service provider customers to accelerate the delivery of broadband access to the home.

Under the terms of the acquisition, shares of Cisco common stock with an aggregate value of approximately $143 million will be exchanged for all outstanding shares and options of MaxComm. In connection with the acquisition, Cisco expects a one-time charge against after-tax earnings of up to $.02 per share for purchased in-process research and development expenses in the first quarter of fiscal 2000. The acquisition has been approved by the board of directors of each company and is subject to various closing conditions.

Cisco's acquisition of MaxComm will allow service providers to offer additional voice lines and high-speed Internet access without installing new wiring in the home. MaxComm offers a hardware and software solution that uses broadband access technologies such as ADSL and cable to connect residential customers to public networks. This technology will give consumers more choices for combined data and voice services.

Using MaxComm's technology, service providers can decrease their investment in closed phone systems from traditional telecommunication companies, increase revenue by offering new data and voice services to consumers over high-speed networks and reduce the amount of time that consumers have to wait for these services. This acquisition strengthens Cisco's New World integrated data and voice strategy for service providers and their consumer customers.

MaxComm was founded in 1998. The 35 employees have been led by MaxComm President and CEO Dev Gupta.

"Today's successful xDSL market has fueled the need for service providers to offer multiple services into the home," said David Gudmundson, vice president of Cisco's DSL business unit. "Our acquisition of MaxComm underscores Cisco's commitment to the consumer marketplace by addressing the growing demand for xDSL services and the continuing need for second or third phones in the home," he added.

Cisco Systems

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

# # #

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.