News Release

Cisco Systems to Acquire Cocom A/S

Technology Enhances Cisco's Cable Internet and Digital Set Top Offering to Support International Standards
Sep 15, 1999

SAN JOSE, Calif. -- September 15, 1999 -- Cisco Systems, Inc. today announced a definitive agreement to acquire privately-held Cocom A/S of Copenhagen, Denmark. Cocom is a leading European developer of high-speed Internet access solutions over cable, satellite and wireless networks based on international standards. This acquisition broadens Cisco's strategy to deliver industry leading standards-based broadband access products by adding Digital Video Broadcasting (DVB) solutions to Cisco's cable portfolio.

Under the terms of the agreement, Cisco common stock worth $65.6 million will be exchanged for all outstanding shares and warrants of Cocom. The acquisition will be accounted for as a pooling of interests and is expected to close in the first quarter of Cisco's fiscal year 2000. This acquisition has been approved by the board of directors of each company and is subject to various closing conditions.

Complementing Cisco's existing standards-based cable product portfolio, Cocom's products are based on the Digital Video Broadcasting (DVB) standard. This standard is used in emerging digital set top box and broadband appliance infrastructures worldwide. Cocom's product portfolio includes head-end transmission and customer premise equipment. This acquisition will enable Cisco to offer a more complete, open standards-based cable access portfolio based on Cisco's industry leading uBR family and IOS technologies.

Cocom was founded in 1995. The 66 employees led by Cocom CEO Allan J. Vestergaard and founders Henrik Hvidtfeldt (President) and Gregers Kronborg (Executive Vice President) will continue to operate in Copenhagen, Denmark and will become part of the Cable Products and Solutions group within the Service Provider line of business.

Cisco Systems

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

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This release may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company that involve risks and uncertainties. Readers are cautioned that these statements are only predictions and 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 risks associated with acquisition strategy, dependence on new product offerings, competition, patents, intellectual property and licensing, future growth, rapid technological and market change, manufacturing and sourcing risks, Internet infrastructure and regulation, international operations, volatility of stock price, financial risk management and potential volatility in operating results, among others.

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