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Exhibit 99.1
[LOGO CAIS INTERNET] NEWS RELEASE
www.cais.com
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FOR IMMEDIATE RELEASE
Contact: Emil Hill, Manning, Selvage & Lee/CAIS Internet
202.261.2866
Sonora Cummings, CAIS Internet
202.715.1712
CAIS SELLS CERTAIN CAISSoft ASSETS TO CISCO SYSTEMS
WASINGTON, DC -(October, 20, 2000)- CAIS Internet Inc. (Nasdaq "CAIS") today
announced it has entered into a definitive agreement with Cisco Systems, Inc. to
sell the broadband subscriber management software business of CAIS Software
Solutions (CAISSoft), a wholly owned software development subsidiary.
CAIS Software Solutions, previously known as ATCOM/INFO, was acquired by CAIS
Internet in 1999 and is based in San Diego, Calif. CAIS Software Solutions
offers software applications that enable service providers to more easily
provision and manage high-speed, broadband Internet services in hotels,
apartments, airports and office buildings. The sale of CAISSoft enhances CAIS'
strategy to focus its core competencies in high-speed public Internet access.
Under the terms of the agreement, cash and Cisco common stock worth an
aggregate value of approximately $170 million (US) will be exchanged for the
stock options and assets of the broadband subscriber management software
business of CAISSoft. The acquisition has been approved by the board of
directors of each company and is subject to various closing conditions. Gross
cash proceeds to CAIS will be approximately $147 million, of which approximately
27% will be placed in escrow.
"We believe this transaction is a benefit to our company and will allow the
innovative CAISsoft products to be offered through a premier global industry
leader," said Ulysses G. Auger II, CEO of CAIS
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Internet. "This transaction clearly narrows the focus of CAIS to our core
broadband services business. This is the first step in a process of modifying
our business model to focus on profitability and prudent preservation of
capital."
CAISSoft's suite of server-based software applications complements Cisco's
existing in-building DSL, Ethernet, cable and wireless network solutions by
enabling broadband service providers to effectively deploy, market and operate
services for the multi-family, multi-tenant and hospitality markets. CAISsoft's
software product, the IPORT Broadband Provisioning System, provides security,
accounting, authorization, reporting, policy, and management functionality in a
multi-user location.
About CAIS Internet
CAIS Internet, Inc. (Nasdaq: CAIS) is a leading broadband access solutions
company. News and information are available at www.cais.com.
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CAIS provides the mobile workforce with comprehensive high speed Internet
solutions while at home in apartments, at work during the day in small-to-medium
businesses, or on-the-go at airports, travel plazas, cruise ships, retail
stores, and in hotel guest and meeting rooms.
Whether creating a low cost in-building network and content service for multiple
users with proprietary and patented technologies, providing a public area
Internet kiosk, or giving businesses daytime connectivity with DSL & leased-line
dedicated access, the company delivers a cost-effective, easy and convenient
Internet experience for customers. The customer experience is the result of a
one-stop, integrated solutions package of innovative CAIS network access and
technologies, IPORT software, customer support, portal content and systems.
CAIS Internet currently is the designated Internet access solution for more than
1.3 million hotel rooms, or 9,800 properties, which will also carry CAIS meeting
room and IPORT kiosk access solutions. CAIS is also the leader in agreements to
deliver Internet solutions to more than 700 apartment communities, or more than
215,000 residences.
CAIS Internet is headquartered in Washington, DC, with two subsidiaries in
California, CAIS Software Solutions and Business Anywhere. CAIS Internet
operates a Cisco-Powered, clear-channel Internet and ATM Network, and peers with
public and private partners, and at national exchange points.
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About CAIS Software Solutions
Based in San Diego, California, CAIS Software Solutions develops the award-
winning IPORT(TM) family of products for automated Internet Everywhere(TM)
access. IPORT enables service providers, e-commerce merchants, and information-
based organizations to effectively offer new and enhanced Internet based
services. IPORT solutions are installed in hotels, cruise ships, airports,
central offices, and cable head-ends worldwide.
Formerly known as ATCOM/INFO, the company is a wholly owned subsidiary of CAIS
Internet (NASDAQ: CAIS), a Washington, D.C-based broadband solutions provider.
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