SAN JOSE, Calif., February 15, 2006 - Cisco Systems expanded its leadership position in the global voice market for large, small and medium-sized enterprises for the 2005 calendar year, based on the most recent report by the Synergy Research Group. The report names Cisco as the revenue leader in the worldwide enterprise voice market, including both Internet Protocol (IP) and traditional circuit-based systems, for both the fourth quarter of 2005 and for the entire calendar year.

In Synergy's "Q4 2005 Enterprise Voice Market Shares" report¹, Cisco IP Communications products again outsold both the legacy and hybrid voice solutions of each of its competitors. Cisco has been recognized as a leader in the IP telephony segment for many years, but this marks the first full year in which Cisco has sold more IP-based voice solutions than the combined IP, hybrid and time-division multiplexing (TDM)-based private branch exchange (PBX) and key systems from any other vendor.

"Cisco's worldwide shipments grew over 40 percent year-over-year," said Jeremy Duke, president and CEO of the Synergy Research Group. "Cisco continues to grow on a sustained and consistent basis in the enterprise voice business thanks to its early vision and continuing investment in IP telephony. As enterprise telephony solutions continue to transition to IP, Cisco finds itself uniquely positioned at the heart of both voice and data networks."

Cisco is demonstrating its leadership in the following ways:

• Cisco leads the deployment of Cisco IP phones, with over 7.5 million IP phones sold globally to date.
• Cisco is shipping more than twice as many IP phones as its nearest competitor.
• There are over 100 Cisco customers who have each deployed more than 5,000 Cisco IP phones.
• There are more than 30 customers have deployed over 10,000 Cisco IP phones.

At the same time, Cisco CallManager Express and new Cisco Hosted Small Business System (Linksys One®) and Linksys Voice System products offer IP-based voice solutions covering each segment of the small and mid-sized business markets. Cisco is also a leader in IP-based solutions for messaging and voicemail, audio and Web conferencing and call centers, demonstrating the power of voice as an integrated application and not just a phone call.

"The most recent market share data shows that more and more organizations around the world are choosing IP-based voice solutions, making Cisco both the market leader and still one of the fastest growing suppliers of business voice solutions," said Don Proctor, senior vice president of Cisco's Voice Technology Group. "As customers increasingly recognize the benefits of IP telephony, we are working hard, along with our partners, setting the stage for even more dramatic changes ahead and making communications of all kinds more effective, powerful and productive."