News Release

Cisco Systems, Inc. Announces Plans to Acquire Facility in New Hampshire for Proposed Manufacturing Site

674,000 Square Feet Marks the Newest Cisco Manufacturing
May 10, 2000

674,000 Square Feet Marks the Newest Cisco Manufacturing Site, Which is Expected to Grow Up to 2500 Employees

Chelmsford, MA., May 10, 2000 -- Cisco Systems, Inc., today announced that it has entered into an agreement to acquire approximately 110 acres of property in New Hampshire. The proposed New England Manufacturing Center will be located within the town limits of Salem, New Hampshire approximately 40 miles northwest of Boston. Cisco's newest manufacturing site is part of the company's plans for expansion and substantial growth in New England and is in addition to the recently announced New England Development Center in Massachusetts. This new facility consists of 674,000 square feet of office and manufacturing space, which will be converted into a state-of-the-art facility.

"The tremendous demand for Internet technology, specifically, the growth in optical network solutions has created the need for this most recent expansion in manufacturing", said Carl Redfield, senior vice president of manufacturing, Cisco Systems. "New England continues to be a source of great talent for Cisco and we are planning extensive recruitment in this region. Our five year history in New England has been very productive and we are taking responsible steps now to prepare for our future growth."

"Cisco is a well-known leader in the Internet world. Its decision to manufacture next generation Internet products in New Hampshire is a clear indication of the strength of our economy," said Governor Jeanne Shaheen. " I am pleased that state government was able to assist Cisco in its efforts."

New England Manufacturing Center
The new manufacturing center will be utilized for test and assembly, and distribution of Cisco products globally. For example, products such as next generation optics-based routers and networking solutions will be built in the new facility. These high-end optical products are used for high capacity movement of information, including data, voice, and video. Up to 2,500 new jobs will be created within the next five years to support the new manufacturing center. New jobs available will include, optical manufacturing technologists, component engineers, technicians, multiple levels of management, and production managers. Cisco's business is considered "clean industry," primarily providing high skill, high wage engineering and computer science jobs. Specific services have not yet been determined for the new facility. Existing Cisco campuses include on-site dining, ATM, health and fitness facilities, company store and other personal services and amenities. Cisco expects to provide a similar array of personal services on the new site for its employees.

The new Cisco manufacturing facility is comprised of 674,000 square feet of open office and manufacturing space. The facility is located on 110 acres of land at 9 Northeastern Boulevard, Salem, New Hampshire, adjacent to Exit 2, off of Route Interstate 93. Interior improvements will be performed to bring this facility to up to par with Cisco's state-of-the-art manufacturing standards.

Cisco in New England
Cisco in New England currently has several primary locations: Chelmsford, Lowell and Lexington Massachusetts. Currently, the 2200-person employee base represents Cisco's Service Provider Line of Business, and up to 20 other business organizations, including the software group. There have been eleven New England based acquisitions since 1994, in the total amount of $9.9 billion dollars. Cisco's recruitment efforts in New England have been substantial in the areas of software engineering, application consultants, hardware engineering and marketing.

Cisco Systems began in 1984 and today has $18 billion in annual sales and a market capitalization of over $435 billion. Cisco Systems employs approximately 29,000 employees worldwide. Cisco has a significant presence in strategic technology centers in San Jose, California, North Carolina's Research Triangle Park, Texas and Virginia in the United States.