Cisco Router Technology To Be Integrated With Compaq Platform; First Physically Integrated Solution Will Offer Improved Flexibility and Simplified Network Management on an Industry-Standard Platform

Business Wire, June 26, 1995

HOUSTON--(BUSINESS WIRE)--June 26, 1995 -- Compaq Computer Corporation (NYSE: CPQ) and Cisco Systems, Inc. (NASDAQ: CSCO) today announced an agreement to bring the computer industry's first integration of the leading internetworking technology into a value-oriented industry-standard computer platform. Under the agreement between the two industry leaders, Compaq will integrate the widely-used Cisco Internetwork Operating System software (Cisco IOS)(a) into a future networking product, based on industry standards, and bring it to market through the worldwide Compaq distributor and reseller channels.

This first marriage of router technology with an industry- standard architecture is intended to redefine the router marketplace by offering substantial price/performance benefits and other advantages to the network systems integrator and manager. The architecture of the new platform is intended to provide a range of scaleable solutions and will include simplified installation and configuration, and more effective network resource management.

The first Compaq product with integrated Cisco IOS is expected in the first half of 1996. Now, for the first time, customers will reap the benefits of the leading routing technology from Cisco on a cost-effective, scaleable industry- standard computing platform from Compaq. The Compaq/Cisco technology is intended to become a component of more extensive integrated systems.

A router is an intelligent networking device combining high performance hardware with sophisticated software. It serves as the "intersection" between any combination of PCs and workstations, their "local area networks" (LANs) and their long-distance or "wide area networks" (WANs).

"With Cisco as our partner, Compaq delivers on its vision of simplified network computing through innovative internetworking solutions that are tightly integrated with our client/server strategy," said Gary Stimac, senior vice president and general manager, Systems Division, Compaq Computer Corp. "By incorporating Cisco IOS into our products, our customers will for the first time have a Cisco network solution that is supported by Compaq and engineered with Compaq quality, reliability and ease of use."

John Chambers, president and CEO, Cisco Systems, Inc., said, "There is a critical need for effective network solutions in the dynamic markets for small and medium businesses and Fortune 1000 remote-office access. The leaders in PCs and internetworking have agreed to help users in these markets maximize their investments in innovative technologies while reducing total ownership costs. Cisco will continue to extend Cisco IOS throughout the enterprise to ensure networking interoperability."

As part of the agreement, Compaq is licensing the Cisco IOS, a sophisticated suite of networking software. Cisco IOS ensures robust, reliable internetworks by supporting both LAN and WAN protocols, optimizing WAN services, and controlling internetwork access. The software has previously been integrated into more than 30 other hub, switch, and internetworking products sold by Cisco partners. The agreement also calls for development of joint marketing, cooperative service and support programs, and use of the Cisco IOS logo. Customer support for future products emerging from the agreement will be provided by Compaq.

The agreement also calls for cooperative development of network management applications, incorporating both Compaq technology and the CiscoWorks set of applications. Background

Compaq Computer Corporation is the world's largest supplier of personal computers, offering desktop PCs, portable PCs, and servers. Founded in 1982, the company reported 1994 worldwide sales of $10.9 billion. Compaq products are sold and supported in more than 100 countries through a network of more than 38,000 Compaq marketing partners. Compaq also sells directly to customers through Compaq Direct Plus at 1-800-888- 5858. Compaq provides 24-hour customer support and can be reached through the Compaq forums on America Online, CompuServe, Internet, and Prodigy, or by calling 1-800-345-1518.

Cisco Systems, Inc. is the leading global supplier of enterprise networks, including routers, LAN and ATM switches, dial-up access servers and network management software. These products, integrated by the Cisco Internetworking Operating System (Cisco IOS), link geographically dispersed LANs, WANs and IBM networks. Cisco is headquartered in San Jose, California. -0-

(a) Cisco IOS is a trademark of Cisco Systems, Inc.

Compaq, Deskpro Registered U.S. Patent and Trademark Office. DirectPlus is a service mark of Compaq Computer Corporation. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies. Cisco Systems and Cisco IOS are trademarks of Cisco System, Inc.

CONTACT: Cisco Systems, Inc.

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408-526-7388

Robert Michelet

408-526-6636

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Compaq Computer Corporation

John Sweney, Yvonne Donaldson, Mike Berman,

Jerele Neeld Nora Hahn, Hedy Baker, Brian Temple,