<PAGE> 1
EXHIBIT 20.1
PRESS RELEASE
PRESS CONTACT: INVESTOR RELATIONS CONTACT:
Jeanette Gibson Mary Thurber
Cisco Systems, Inc. Cisco Systems, Inc.
(408) 525-8965 (408) 526-8893
[email protected] [email protected]
ANALYST RELATIONS CONTACT:
Dora Ferrell
Cisco Systems, Inc.
(408) 527-4202
[email protected]
CISCO SYSTEMS TO ACQUIRE KOMODO TECHNOLOGY, INC.
DRIVING RESIDENTIAL IP TELEPHONE SERVICE
SAN JOSE, Calif.--(BUSINESS WIRE)--July 25, 2000--Cisco Systems, Inc.,
(Nasdaq:CSCO - news) today announced a definitive agreement to acquire
privately-held Komodo Technology, Inc. of Los Gatos, California. Komodo
Technology is a leading developer of Voice-over-IP (VoIP) devices that allow
analog telephones to place calls over IP-based networks.
This acquisition supports Cisco's New World strategy to offer service
providers an end-to-end solution for providing integrated data, voice and video
services over a single Internet-based network.
Under the terms of the agreement, Cisco common stock worth an aggregate
value of approximately $175 million will be exchanged for all outstanding shares
and options of Komodo Technology. This transaction includes a 10.5% minority
investment made by Cisco in March 2000. This acquisition will be accounted for
as a purchase and is expected to be completed in the first quarter of Cisco's
fiscal year 2001. In connection with the acquisition, Cisco expects a one-time
charge of up to $.02 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
including approval under the Hart Scott Rodino Antitrust Improvements Act.
This acquisition strengthens Cisco's service provider solutions by offering
a smooth transition path from traditional circuit-switched networks to new
packet-based networks. Komodo's VoIP devices are cost-effective solutions that
will help service providers meet the growing demand for IP telephone services by
supporting customers with analog telephones. An analog phone can be connected
directly to Komodo's product, which connects via an internal modem to a standard
telephone line or via an Ethernet jack to a broadband (DSL, cable or wireless)
access device.
<PAGE> 2
Komodo Technology, Inc. was founded in 1999. The 25 employees will be led
by Komodo CEO Jan Fandriato and will join the Packet Telephony Division in
Cisco's Service Provider Line of Business led by Senior Vice President Kevin
Kennedy.
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.
# # #
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.
