News Release

Updated Cisco Comment on the Situation in Brazil

We understand that questions have been expressed about the
Oct 19, 2007

We understand that questions have been expressed about the recent Policia Federal investigation, subsequent allegations and how they may pertain to Cisco.

Cisco and its Brazilian leadership have participated from the very beginning in building the Internet in Brazil. Cisco is proud of its contribution to the Brazilian economy through its support of critical internet networks, and of our active participation in the drive toward meaningful digital inclusion in Brasil. Our ethics, integrity and compliance with the law are core to who we are as a company.

Right now, we are working hard to better understand the details of this situation. Of the 44 warrants issued by the Brazilian authorities, based on the information we have only 4 were issued to Cisco employees. Our foremost concern and focus is with our four detained employees and their families, as well as for the welfare of all our hundreds of hard-working employees who live and work throughout Brazil and the hundreds of others who help support our customers. We are doing all we can to support them through these difficult times.

In the review of the facts that we've been able to undertake, we do not believe Cisco has acted inappropriately. Key to our evaluation, we would note that Cisco does not import products directly into Brazil, but relies on resellers. We are fully cooperating with the authorities and are conducting a thorough internal review as well to understand these troubling allegations. The only appropriate response to a challenge such as this is to be open and transparent.

Until the facts are known, it would be premature and irresponsible on our part to speculate about the situation. While we work to understand the facts, we are giving full attention to the business of working closely with our partners to support and service our thousands of loyal customers in Brazil.

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