Cisco Broadband Market Expands Worldwide, According to Industry Analysts; Cisco Maintains Leadership and Growth in Broadband DSL Aggregation, Cable Headend and DSL Spaces.

Business Editors/Technology Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Sept. 28, 2000

Cisco Systems, Inc. (NASDAQ: CSCO), the worldwide leader in networking for the Internet, today announced that recent reports from industry analysts show Cisco continues to lead the broadband equipment market. For the second quarter of 2000, Cisco remained the clear market share leader in the broadband DSL aggregation market, maintained its position as one of the top two leaders in the worldwide DSL access concentrator market, and maintained the top market share position in the cable headend segment.

"Again, analyst firms show Cisco is leading with complete solutions in broadband," said Scott Marshall, group vice president of the Cisco Service Provider Access and Aggregation Group and New World Carrier Services Group. "Service providers can turn to Cisco, one company, for all their broadband requirements and for solutions that address their needs to deploy rapidly with products that will deliver value-added services and generate revenue. Our focus is on delivering complete solutions that allow service providers to grow their business and operate more efficiently. This is what our customers have asked for, and why we will continue to maintain our leadership position in the broadband space."

Broadband Aggregation Leadership

In independent research reports, Infonetics Research and Synergy Research show Cisco has remained the clear market share leader in the worldwide DSL aggregation market--for both total units shipped and revenue. According to the Infonetics report, Cisco ranked number one in both units shipped and total worldwide aggregation revenue for the second quarter of this year. In a separate report by Synergy Research, Cisco also ranked number one in worldwide broadband aggregation. The company reported Cisco with 50% total market share in units shipped and 36% market share in revenues.

DSL Leadership

Along with leadership in the broadband aggregation space, independent reports from Dell'Oro Group, Infonetics and Synergy show that for the second quarter of this year, Cisco continued to hold a strong position as one of the top two companies in the worldwide DSL access concentrator market in total units shipped. Infonetics reported that Cisco further strengthened its position with a gain of 6 market share points over the previous quarter in the ADSL segment. According to the report, this gain resulted from a 148% increase in Cisco ADSL port shipments over the first quarter. The Infonetics report also shows that with an overall growth in DSL port shipments of 87%, Cisco grew faster than the DSL market and twice as fast as the leading competitor, which had growth rates of 46% and 42%, respectively.

"Cisco's continued growth in the worldwide DSL market stems from our focus on addressing customer needs through both product innovation and our GlobalDSL strategy which helps service providers achieve the true market and service potential of DSL-based broadband access. This has led to a strong customer preference for the Cisco IP DSL Switch family which combines IP routing flexibility and scalability with a rich set of ATM controls," said Marshall. "Service providers see this feature set as a key buying criteria because it enables them to deliver revenue-generating, managed, multiservice offerings that ATM or frame-relay based `dumb' DSLAMs cannot provide."

Cable Leadership

For the second quarter of 2000, both Dell'Oro Group and Synergy Research show that Cisco continues to lead the global cable access concentrator market in revenue, number of units sold and number of ports shipped. Cisco's uBR7200 Series Universal Broadband Routers provides cable operators with a scalable, carrier-class interface between subscriber cable modems and the back-bone data network.

The Cisco IP-based uBR7200 Series enables cable operators to add communication, entertainment and commercial solutions to their service portfolio, enabling higher profits from the same network resources. In addition to the uBR7200 family of products, Cisco and its ecosystem partners offer cable operators a complete, end-to-end network infrastructure including solutions for the high-speed fiber backbone, headend, hub, data center, and home.

Cisco's uBR7246 was the first qualified Data-over-Cable Service Interface Specification (DOCSIS) cable modem termination system. Cisco also provides cable solutions that are compliant with EuroDOCSIS and Digital Video Broadcast / Digital Audio Video Council (DVB/DAVIC).

About Cisco Broadband Solutions

Cisco is the market leader in deployment of broadband solutions, delivering service-enabling infrastructures for cable, DSL and wireless customers. Cisco's multiservice broadband solutions enable service providers to rapidly deploy a breadth of revenue-generating services such as corporate Internet/Intranet access, secure Virtual Private Networks (VPNs), residential and business Voice-over-IP services, and entertainment services such as digital video or streaming media. With Cisco's multiservice broadband solutions, service providers also gain access to world-class professional services, business programs and the New World Ecosystem of best-of-breed partners.

Cisco Systems

Cisco Systems, Inc. (Nasdaq: CSCO) is the worldwide leader in networking for the Internet. News and information are available at http://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.