News Release

Cisco Systems to Acquire Internet Engineering Group, L.L.C.

Advanced Software for High-End Routers
Dec 17, 1999

SAN JOSE, Calif., Dec. 17, 1999 - Cisco Systems, Inc. today announced the acquisition of privately-held Internet Engineering Group, L.L.C. (IEng) of Ann Arbor, Michigan. IEng is a leading developer of high-performance software. This acquisition strengthens Cisco's optical internetworking strategy to enable service providers to build next-generation high-speed networks.

Under the terms of the acquisition, Cisco will pay approximately $25 million to acquire the outstanding equity of IEng. The acquisition will be accounted for as a purchase and has closed in the second quarter of Cisco's fiscal 2000. The acquisition has been approved by Cisco's board of directors and the members of IEng.

IEng's software resides in the core of the service providers' network. Their open, standards-based software suite can be easily integrated with Cisco's existing network software offering to bring more functionality, flexibility and scalability to optical internetworks. IEng's expertise complements Cisco's existing optical internetworking team and advances Cisco's New World optical strategy for its service provider customers.

IEng was founded in 1996. The 13 employees will become part of the Optical Internetworking Business Unit 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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