News Release

Cisco to Acquire NetSift

SAN JOSE, Calif., June 27, 2005 -- Cisco Systems® today
Jun 27, 2005

SAN JOSE, Calif., June 27, 2005 -- Cisco Systems® today announced a definitive agreement to acquire privately-held NetSift, Inc. of San Diego, Calif. The NetSift acquisition will help Cisco to accelerate the integration of additional packet processing capabilities into future core Cisco platforms, such as modular switching. NetSift provides Cisco with a unique solution to deep packet processing challenges, valuable intellectual property, and a core team with a long history of algorithmic innovations supporting high-speed packet processing.

Under the terms of the agreement, Cisco will pay approximately $30 million in cash and options for NetSift. The acquisition is subject to various standard closing conditions, including applicable regulatory approvals, and is expected to close in the fourth quarter of Cisco's fiscal year 2005 ending July 30, 2005.

Upon close of the transaction, NetSift will become part of Cisco's Internet Systems Business Unit (ISBU) led by vice president and general manager Tom Edsall. NetSift was founded in June 2004 and has 15 employees.