Cisco Systems Sets Board Succession Plan; John Chambers Designated to Serve as CEO and Chairman of the Board of Directors; Current Chairman John Morgridge to Become Chairman Emeritus

"Today's unanimous decision by the board of directors underscoresour high level of confidence in John Chambers' leadership over his15-year tenure at Cisco, and his ability to shape the future directionof the company," said John Morgridge, chairman of the board, CiscoSystems. "John's model for leadership evolution at Cisco has resultedin a world-class executive team with an unequaled industry trackrecord and proven ability to achieve sustained profitable growth."

Also commenting on the succession plan, Lead Independent DirectorCarol Bartz said, "Serving at the discretion of shareholders, Cisco'sboard of directors consists of individuals of significant characterand credibility, selected for their acumen and ability to challengeand add value to management. Throughout his tenure as president andCEO, John has served shareholders well, successfully navigating Ciscothrough both strong and challenging economic and industry climates.This experience, combined with Cisco's diverse, independent boardcontinues the solid management and oversight of the company."

John Morgridge has served Cisco for over approximately 18 years,initially as CEO, and appointed to chairman of board in 1995. Hesteered the company through multiple corporate milestones, includingits initial public filing in 1990, and helped set the culture ofCisco; one of innovation, empowerment, frugality and giving back.Throughout his tenure, Morgridge has been a champion of Cisco'scharitable giving efforts and Network Academies. As chairman emeritus,his focus will center on the Cisco Foundation and the company'slong-term commitment to basic human needs, responsible citizenship andaccess to education.

John Chambers has been president and CEO of Cisco Systems sinceJanuary 1995. Since that time, Chambers has grown the company fromapproximately $1.2 billion in annual revenues to approximately $24.8billion for fiscal year 2005, with market cap growth fromapproximately $10.4 billion in 1995 to approximately $121 billiontoday. Chambers joined Cisco in 1991 as senior vice president,Worldwide Sales and Operations. Prior to joining Cisco, he spent eightyears at Wang Laboratories and six years with IBM. He holds a lawdegree and a bachelor of science/bachelor of arts degree in businessfrom West Virginia University. He later received a masters of businessadministration degree in finance and management from IndianaUniversity.

"I will be honored to serve Cisco's shareholders, customers,partners and employees as CEO and Chairman," said Chambers. "Thisdecision reflects as much on me as it does on the leadership team atCisco and our board of directors. We're building a management team forthe 21st century that emphasizes collaborative leadership built onteamwork that drives innovation and speed of execution -- I couldn'tbe more proud of what Cisco has accomplished as a team."

Cisco's board of directors currently consists of 12 members, nineof whom are independent. Carol A. Bartz, Executive Chairman, Autodesk,Inc. has been a member of the board since November 1996, and wasappointed Lead Independent Director in November 2005. Other boardmembers include: M. Michele Burns, Executive Vice President and ChiefFinancial Officer, Marsh & McLennan Companies, Inc.; Michael D.Capellas, former president and CEO, MCI; Larry R. Carter, senior vicepresident, Cisco Systems, Inc.; John T. Chambers, current presidentand CEO, Cisco Systems, Inc.; John L. Hennessy, Ph.D., president,Stanford University; Richard M. Kovacevich, chairman and CEO, WellsFargo & Company; Roderick C. McGeary, chairman, Bearing Point, Inc.;James C. Morgan, chairman, Applied Materials, Inc.; John P. Morgridge,current chairman of the board, Cisco Systems, Inc.; Steven M. West,founder and partner, Emerging Company Partners; and Jerry Yang,co-founder, chief Yahoo! and director, Yahoo! Inc.

To learn more about Cisco's board and corporate governancepractices, please visit the Corporate Governance section atinvestor.cisco.com.

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