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This Prospectus Sticker dated October 25,
2000 Pursuant to Rule 424(b)(3)
supplements Registration Statement No.
333-38332 dated June 29, 2000
Recent Developments
On October 19, 2000, we agreed to sell the broadband subscriber management
software business of our subsidiary Cais Software Solutions ("CaisSoft") to
Cisco Systems, Inc. ("Cisco") in exchange for gross cash proceeds to us of $147
million, of which approximately 27% will be placed in escrow. Both parties hope
to close this transaction prior to calendar year-end 2000.
The assets sold to Cisco include our IPORT technology. We will retain a five-
year, royalty-free license to use IPORT in our existing hotel and multi-family
environments. We intend on negotiating a royalty-based license to use IPORT
beyond the five-year term. We will continue to focus on our core competencies
in high-speed public internet access. For more information concerning this
transaction, see our Form 8-K, as filed with the SEC on October 20, 2000.
In addition, the San Diego Foundation has been added as a selling stockholder
of 9,000 shares as a result of a gift of shares from two selling stockholders,
Neil R. Senturia and Barbara Bry. Due to this gift and unrelated sales of our
stock, Mr. Senturia's and Ms. Bry's total shares registered for resale are
adjusted to 213,070 and 35,072, respectively.
