SAN JOSE, Calif., October 31, 2008 - Cisco announced today that it will acquire an increased equity stake in VMware.

Cisco will purchase 500,000 shares of VMware Class A common stock currently held by Intel Corporation for approximately $13.3M. Upon closing of the investment, Cisco will own approximately 1.7% percent of VMware's total outstanding common stock.

Cisco's purchase is intended to build on the strong inter-company collaboration between Cisco and VMware in the adoption of the companies' virtualization products and solutions that address the intersection of virtualization and networking technologies.

In September, 2008, Cisco and VMware announced several joint initiatives in the data center virtualization market including the launch of the The Cisco Nexus® 1000V distributed virtual software switch, enhanced professional services and reseller certification training at: http://newsroom.cisco.com/dlls/2008/prod_091608e.html