Cisco Systems and the Irvine Company Reach Agreement On Additional 480,000 Square Feet in Silicon Valley.

Business Editors

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--July 12, 2000

Networking Giant Becomes Irvine Co.'s Largest Tenant, Occupying

More Than 1 Million Square Feet in Milpitas

Just 90 days after Cisco Systems Inc. signed a deal to occupy 10 buildings at The Irvine Company's McCarthy Center in Milpitas, the two companies have reached an agreement for Cisco to occupy an additional nine buildings for a total of more than one million square feet. With this transaction, Cisco will become The Irvine Company's largest single tenant.

The McCarthy Center is located in the City of Milpitas just north of San Jose at the intersection of the 880 Nimitz and 237 freeways. In April, Cisco signed a lease to occupy the first 572,000 square feet in 10 two-story buildings in McCarthy Center. This week, Cisco agreed to lease the remaining 480,000 square feet in 9 additional buildings. Cisco will begin to occupy the first four buildings this summer. All 19 buildings are expected to be completed by Summer 2001.

"When we began to plan McCarthy Center, we hoped it would be an attractive campus for large, rapidly-expanding companies and we were thrilled to have Cisco sign on as our first tenant," said Bill Halford, president of the Irvine Office Company, a division of The Irvine Company's Investment Properties Group. "Cisco's decision to occupy the entire complex is even more exciting and really speaks to the growing demand in this area for flexible, high tech office space."

In addition to leasing space at McCarthy Center, Cisco is a tenant of The Irvine Company's University Research Park next to UC Irvine, where companies collaborate with the university as a condition of locating at the park. Cisco also leases space from The Irvine Company in West Los Angeles.

The Irvine Company is a privately held real estate investment firm based in Newport Beach. The company's growing portfolio of income-producing properties is approaching 45 million square feet of office, industrial, research and development buildings, retail centers and apartments in California. Its operations are based primarily in Orange County, but the company also has properties in Los Angeles, San Diego and the Silicon Valley. The company's holdings include two hotels, five marinas and three public golf courses.

The Irvine Company's Silicon Valley portfolio includes approximately 2 million square feet of office and R&D buildings and another 1.5 million square feet planned or under development. The company has 1,000 apartments either completed or under construction and will break ground on another 2,000 before the end of the year. For more information, refer to The Irvine Company's Web site at www.irvineco.com.