Cisco Systems to Acquire CAIS Software Solutions; Technology Enhances Cisco's Broadband Connectivity Solutions for Hotels, Apartments and Other Multi-Unit Buildings.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 20, 2000

Cisco Systems, Inc. (Nasdaq:CSCO), today announced it has entered into a definitive agreement to acquire the broadband subscriber management software business of CAIS Software Solutions (CAISsoft), a wholly owned subsidiary of publicly traded CAIS Internet, Inc. (Nasdaq:CAIS) of Washington, D.C. CAIS Software Solutions, previously known as ATCOM/INFO, was acquired by CAIS Internet in 1999 and is based in San Diego, Calif. CAISsoft offers software applications that enable service providers to more easily provision and manage high-speed, broadband Internet services in hotels, apartments, airports and office buildings. The acquisition enhances Cisco's strategy of offering complete broadband connectivity solutions for service providers addressing the multi-unit building market.

Under the terms of the agreement, cash and Cisco common stock worth an aggregate value of approximately $170 million (U.S.) will be exchanged for the stock options and assets of the broadband subscriber management software business of CAISsoft. This acquisition will be accounted for as a purchase and is expected to be complete 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 $0.01 per share. The acquisition has been approved by the board of directors of each company and is subject to various closing conditions.

CAISsoft's suite of server-based software applications complements Cisco's existing in-building DSL, Ethernet, cable and wireless network solutions by enabling broadband Service Providers to effectively deploy, market and operate services for the multi-family, multi-tenant and hospitality markets. CAISsoft's application, the IPORT Broadband Provisioning System, provides security, accounting, authorization, reporting, policy, and management functionality in a multi-user location.

65 CAISsoft employees will report to Larry Birenbaum, vice president and general manager, Desktop Switching Business Unit, Cisco's Small and Medium Line of Business.

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