News Release

Cisco Systems Benefits from Improved Economic Conditions in Asia Pacific Region

Internet Leader Highlights Growth in Service Provide Market; Strong growth in Australia, Korea, PRC and Taiwan
Feb 09, 2000

SYDNEY -- 9 February 2000 -- Cisco Systems, the worldwide leader in networking for the Internet, highlighted the performance of its business in the Asia Pacific region during the second quarter of its fiscal year 2000. For the second fiscal quarter that ended on 29 January 2000, Cisco's bookings in the Asia Pacific region were almost double a year ago, representing the sixth quarter of double digit sequential growth. The Asia Pacific region also increased its share of Cisco's worldwide revenue from 8 to 9% during the last quarter. The region also continued to be the fastest growing area in the world for the company.

Cisco's Asia Pacific region includes Australia, China, Hong Kong, India, Indonesia, Korea, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, Thailand and Vietnam and excludes Japan.

"We were particularly pleased with the results in several of our largest markets in the region including Australia, the P.R.C., Korea and Taiwan. We are seeing very strong growth in each of these markets, particularly in the service provider space." Said Richard Freemantle, Senior Vice President, Asia Pacific Theatre. "The Telecommunications and Internet Service Provider (ISP) markets are in a massive state of transition. The pace of deregulation is increasing as the impact of the Internet becomes more pervasive in Asia."

Said Freemantle, "Many countries in Asia Pacific are now well over the economic crisis and are investing heavily in Internet infrastructure. We are also seeing very strong deployment of broadband technologies - and many service providers are moving up deployment schedules to keep pace with consumer and business demand for high speed bandwidth."

The company also benefited from strong growth and increases in market share in its traditional local area networking market. According to the most recent quarterly data published by market researcher IDC, Cisco increased its share of the LAN market in Asia Pacific (including routers, LAN switches and hubs, and excluding NIC cards which the company does not produce) from 43% to 48%.

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