News Release

Cisco and CEAC Sign Agreement on Product Imports

Los Angeles, California, April 6, 2006 - Cisco Systems® and
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Apr 06, 2006

Los Angeles, California, April 6, 2006 - Cisco Systems® and China Electronic Appliance Corporation (CEAC) announced today that Cisco has signed a new agreement designating CEAC as an importer of Cisco networking products into China. Under the agreement, Cisco's channel partners in China will be able to select CEAC as the import agent for Cisco equipments. The signing marks the continuation of the relationship between Cisco and CEAC, which first began in July of 2004. In 2005, the total import volume of Cisco products through CEAC exceeded US$200 million.

The demand for networking products has expanded in China as the major telecom operators construct the new 3G network infrastructure and end users increase their networking investment. According to IDC, the total market for networking equipment grew from RMB 10 billion, or approx. US$ 1.25 billion in 2000 to RMB 18.1 billion, or approx. US$ 2.25 billion in 2005.

With more than 10 year history in China, Cisco has played an active role in transforming the Internet into a commercially viable arena for Chinese enterprises and society. Through an enviable channel infrastructure, including 95 Gold and Silver Certified resellers, 362 Premier Certified resellers and more than 460 authorized resellers, Cisco provides end users with value-added networking solutions and around-the-clock support and services. CEAC, as one of the three largest electronics trading enterprises in China, provides import services for Cisco and many other global firms through its powerful national network of 13 subsidiary companies and 15 holding invested companies across China.

"With the new agreement, we not only anticipate continued growth in the total import volume of Cisco products in the coming year, but also expect it to provide us greater cost advantage and an increase in our market share," commented Mr. Gang Li, president of CEAC, "Our energetic supply network combined with our strategic relationship with Cisco enables us to bring first class services to our business partners and customers."

Under the agreement, CEAC will import for Cisco channel partners desired Cisco products as well as complete all related import services including customs, inspection, foreign exchange and anti-counterfeiting.

"Cisco's growth in China can be attributed in part to the generous support we have received from our business partners like CEAC," praised Thomas Lam, president, Cisco Systems China. "Cisco has forged a close relationship with CEAC, one of an important part of the supply channels for Cisco products in China, that benefits our mutual customers and which continues to enhance the informatization process of China as a whole."

About CEAC

Officially established in 1964, China Electronic Appliance Corporation (CEAC) is a subordinate body of China Electronics Corporation Group(CEC), serving as one of the three largest trading enterprises in the electronic industry in China. CEAC is mainly engaged in the business of electronic components distribution, Telecommunication business, imports and exports trade and exhibition services. It also has efficient business support system in the fields of logistics, public bidding, consultation, magazine media and realty management.