Innovation and Balance of Product Families, Customers and Geographies are Key to "Network of Networks," John Chambers and Cisco Executives Tell Annual Analyst Conference

SAN JOSE, Calif., December 4, 2000 - In a keynote presentation to kick off Cisco's Worldwide Analyst 2000 Conference, President and CEO John Chambers today will discuss the state of the New Economy and announce the "Internet is the Network of Networks" strategy to align enterprise networks and service provider networks around a single Internet-based network.

Chambers outlines how a "Network of Networks" will enable businesses, telecommunications companies and large enterprises to more quickly and easily deploy services to remain competitive as the Internet reshapes business models and revenue opportunities in all industries and sectors.

"The Internet is causing rapid change and creating disruptive market transitions in not only the communications industry but nearly every sector of the economy," said Chambers. "We believe that the Internet is a historic economic change agent and that Cisco's Internet expertise will enable our customers to successfully navigate through the market transition and come out stronger than before."

The entire conference will be broadcast live over the Internet at www.cisco.com/go/investors.

Chambers' keynote address on Monday morning sets the stage for two days of presentations to 500 industry and financial analyst about all facets of Cisco's business operations:

• How Enterprise Line of Business' has taken advantage of the competition's departure from the market to solidify its leadership role in part due to its success in Voice over Internet services.

• What the Commercial Line of Business is doing to create a new market of services that enable business professionals to access their company's network while on the move (such as in airport terminals and hotels), at home and at work.

• How the Service Provider Line of Business is driving the change to data-centric networks and helping service providers make the transition from offering only voice to converged services.

• The growing importance of the Internet Business Solutions Group - a consulting arm that provides customers breakaway Internet business strategies and helps them maximize their use of the Internet - to differentiate Cisco from competitors.

"Cisco is fortunate to be at the center of an economic revolution that is reshaping not only the economy, but all facets of the society. As the most advanced user of the Internet, Cisco has developed unique relationships with customers seeking to understand how they too can leverage the Internet to achieve the "Network Effect" of increased productivity, competition and growth," said Chambers.

Cisco's Worldwide Analyst Conference is being held four weeks after Cisco reported first quarter earnings for fiscal year 2001 of $6.52 billion, a 66 percent increase over the first quarter of fiscal 2000. During its earnings call, CEO Chambers discussed the importance of product, customer and geographic balance that enables the networking leader to execute during market transitions:

• Cisco currently has twelve product families that are at or above billion-dollar run rates (Catalyst 6000; 5000 Series switches; 4000 Series switches; 7000 Series routers; Low-end routers; Catalyst 2900 switch; Catalyst 3500; GSR12000; 2600 Series routers; 3600 Series; ONS 15454; and, broadband product families).

• Each of the regional theaters (Europe, Middle East and Africa; Asia Pacific; Latin America; the United States; and, Japan) grew bookings in the double digits sequentially and grew over 50 percent year over year in the first quarter of fiscal year 2001.

Chambers also took time out of the Analyst Conference to recognize some of the innovators at the company that have made Cisco the most dynamic driver of technology change in the industry:

• Carson Chen, vice president and general manager of the Cable and Wireless Division. Carson spearheaded the effort in 1996 to marry the Internet and cable systems that has led to dynamic change in the cable industry and services now offered to consumers.

• Joe Bass, vice president and general manager of the Wavelength Routing Business Unit. Since joining Cisco after the Monterey acquisition, Joe has driven revolutionary technology that will dramatically change the way optical networks are built.

• Scott Nellenbach, manager of engineering in the Enterprise Line of Business. Scott and his team of innovators have developed cutting-edge networking processing at the heart of routers and switches.

"The efforts by Carson, Joe and Scott - and of course the talented innovators on their teams - are classic examples of how Cisco drives change in the networking industry. The amazing technology innovations they have achieved are truly changing the landscape of the networking industry," said Chambers.