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EXHIBIT 99.1
PRESS CONTACT: INVESTOR RELATIONS CONTACT:
Robyn Jenkins Roberta DeTata
Cisco Systems, Inc. Cisco Systems, Inc.
(408) 853-9848 (408) 527-6388
[email protected] [email protected]
INDUSTRY ANALYST RELATIONS CONTACT:
Dora Ferrell
Cisco Systems, Inc.
(408) 527-4202
[email protected]
CISCO SYSTEMS TO ACQUIRE EXIO COMMUNICATIONS, INC.
Expanding Standards-based Wireless Communications with Voice-over-IP
SAN JOSE, Calif., December 14, 2000 -- Cisco Systems, Inc., today announced
a definitive agreement to acquire privately-held ExiO Communications, Inc. of
San Jose, Calif. ExiO is a leading developer of in-building, wireless
technologies for corporate networks based on standard, Code Division Multiple
Access (CDMA) technologies. The acquisition of ExiO enhances Cisco's New World
strategy for addressing the in-building wireless market that requires a solution
based on next-generation CDMA technologies. In addition, ExiO's wireless
telephony solution builds on Cisco's existing wireless technology that enables
enterprise customers to add the convenience of mobility to voice-over-IP
(Internet Protocol) services.
Under the terms of the agreement, Cisco common stock worth an aggregate
value of approximately $155 million will be exchanged for all outstanding shares
and options of ExiO. This acquisition will be accounted for as a purchase and is
expected to be complete in the third quarter of Cisco's fiscal year 2001. In
connection with the acquisition, Cisco expects a one-time charge of
approximately $.01 per share on an after-tax basis for purchased in-process
research and development expenses. The acquisition has been approved by the
board of directors of each company and is subject to various closing conditions.
The Mobile Wireless Internet is expected to be a large and fast growing
market, serving more than one billion subscribers by 2004. Third-generation
wireless networks, known as 3G networks, will be based on the Internet Protocol
and seamlessly merge with the Internet that exists today. The acquisition of
ExiO further strengthens Cisco's commitment to the development of a fully
converged network, which supports multiple wireless standards, including GSM and
CDMA for integrated mobile voice and data services.
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Founded in October 1999, ExiO Communications has 38 employees, of which 28
are based in San Jose, CA and 10 in Seoul, Korea. The 38 employees will be led
by ExiO CEO, Ki Hyun Joo. ExiO will become part of Cisco's Enterprise Wireless
Telephony Business Unit (EWTBU) headed by Dave McClure, director and general
manager. EWTBU is a part of the new Mobile Wireless Group in Cisco's Service
Provider Line of Business.
ABOUT CISCO SYSTEMS
Cisco Systems, Inc. (NASDAQ: CSCO) is the worldwide leader in networking
for the Internet. News and information are available at www.cisco.com.
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Cisco, Cisco Systems, and the Cisco Systems logo are registered trademarks of
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their respective owners.
This report may contain projections or other forward-looking statements
regarding future events or the future financial performance of Cisco that
involve risks and uncertainties. Readers are cautioned that these
forward-looking statements are only predictions and may differ materially from
actual future events or results. Readers are referred to the documents filed by
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10-Q, each as it may be amended from time to time, which identify important risk
factors that could cause actual results to differ from those contained in the
forward-looking statements, including risks associated with acquisition
strategy, dependence on new product offerings, competition, patents,
intellectual property and licensing, future growth, rapid technological and
market change, manufacturing and sourcing risks, Internet infrastructure and
regulation, international operations, volatility of stock price, financial risk
management, and potential volatility in operating results, among others.
