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PRESS CONTACT: INVESTOR RELATIONS CONTACT:
Jeanette Gibson Roberta DeTata
Cisco Systems, Inc. Cisco Systems, Inc.
(408) 525-8965 (408) 527-6388
[email protected] [email protected]
Terry Alberstein
Cisco Systems, Inc.
(61) 417-213-905
[email protected]
INDUSTRY ANALYST RELATIONS CONTACT:
Art Rangel
Cisco Systems, Inc.
(408) 853-5705
[email protected]
CISCO SYSTEMS TO ACQUIRE RADIATA, INC.
PIONEERING HIGH PERFORMANCE WIRELESS NETWORKS
SAN JOSE and SYDNEY, Nov. 13, 2000 -- Cisco Systems, Inc., today
announced a definitive agreement to acquire privately held Radiata, Inc. of San
Jose, California and Sydney, Australia. Radiata is a leading supplier of
chipsets for high-speed wireless networks. This acquisition strengthens Cisco's
New World strategy by expanding its ability to deliver next generation wireless
networks using the IEEE 802.11a standard for faster data rates.
Under the terms of the agreement, Cisco common stock worth an aggregate
gross value of approximately $295 million will be exchanged for all outstanding
shares and options of Radiata. Cisco has an existing 11% investment in Radiata.
This acquisition will be accounted for as a purchase and is expected to close in
the second quarter of Cisco's fiscal year 2001. In connection with the
acquisition, Cisco expects a one-time charge for purchased in-process research
and development expenses not to exceed $0.02 per share. The acquisition has been
approved by the board of directors of each company and is subject to various
closing conditions. Radiata provides Cisco with leading semiconductor technology
and extensive radio and modem systems expertise for developing next-generation
wireless networks based on the IEEE 802.11a standard. Next-generation wireless
networks, which will operate in the unlicensed 5 GHz frequency range, will
enable wireless communications between devices at speeds up to 54Mbps, which has
previously only been possible with wired connections.
Radiata's product portfolio includes Baseband Processor and Radio chips,
both of which will be integrated into Cisco's industry leading family of Aironet
wireless LAN products including access points, adapters and bridges. The
currently shipping Aironet 340 Series line of products are based on the IEEE
802.11b wireless standard, which operate in the unlicensed 2.4 GHz frequency
range at speeds up to 11Mbps. These products will continue to offer customers
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the most cost-effective wireless LAN solution and the broadest choice of
wireless-enabled mobile clients such as notebooks, handhelds and PDAs.
Radiata, Inc. was founded in 1997 in Sydney, Australia and developed its
technology on the basis of research conducted by CSIRO (Commonwealth Scientific
and Industrial Research Organization), an Australian government research agency
and Macquarie University in Sydney. The 53 employees will join a newly formed
business unit, the Wireless Networking Business Unit of the Ethernet Access
Group, in Cisco's Commercial Line of Business.
CISCO SYSTEMS
CISCO SYSTEMS, INC. (NASDAQ:CSCO) is the worldwide leader in networking for the
Internet. News and information are available at the Cisco Press Room.
# # #
Cisco, Cisco Systems, and the Cisco Systems logo are registered trademarks of
Cisco Systems, Inc. and/or its affiliates in the U.S. and certain other
countries. All other trademarks mentioned in this document are the property of
their respective owners.
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