Cisco Systems to Acquire dynamicsoft; Acquisition Strengthens Cisco's Position in Service Provider Voice Market.

SAN JOSE, Calif. -- Cisco Systems, Inc., today announced a definitive agreement to acquire privately held dynamicsoft of Parsippany, N.J. dynamicsoft is a leading developer of Session Initiation Protocol (SIP)-based solutions that allow telecommunications service providers to deliver advanced Internet Protocol (IP) voice, data and multimedia services. With this acquisition, Cisco strengthens its solutions portfolio for the broadband communications market, including elements of wireless/wireline convergence, enabling service providers to build "subscriber aware" networks capable of delivering the next generation of Voice over IP (VoIP) applications and services.

Under the terms of the agreement, Cisco will pay approximately $55 million in cash, which includes the assumption of outstanding debt in the amount of $3.8 million, as well as working capital.

"Broadband service providers are rapidly transforming their networks into service-delivery platforms, with intelligent endpoints, to fuel a new generation of IP-based communications services," said Charles Giancarlo, senior vice president and chief technology officer, Cisco Systems. "dynamicsoft's portfolio of carrier-class infrastructure products, combined with Cisco's softswitch capabilities, will allow service providers to quickly develop and deploy highly scalable 'subscriber-aware' IP communications services using voice, video, messaging, presence, and other real-time capabilities. SIP-based, intelligent IP networks represent the future of networking and will have a profound impact on the way we communicate, both at work and at home."

Cisco's acquisition of dynamicsoft further emphasizes the company's commitment to the service provider market by enabling network operators to pursue new premium, revenue-generating services delivered over broadband access networks. SIP-based applications provide integrated communications services -- telephone, mobile phone, e-mail and instant messaging -- that enable users to be reached through the device of their choice.

Upon close of the acquisition, the dynamicsoft organization will report to Don Proctor, vice president and general manager of Cisco's voice technology group. dynamicsoft was founded in 1998 and has 104 employees.

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