Cisco Capital Financing Partners Add $2 Billion of Short-Term Inventory Financing to Fuel Growth in Emerging Markets

As part of Cisco's continued investment in emerging countries,
Cisco(R) Capital has expanded its financing capabilities through
agreements, announced today, with Citibank, GE Capital Solutions and
Standard Chartered Bank. The three Cisco Capital financing partners
have agreed to provide $2 billion of short-term inventory financing
capacity on an annual basis to Cisco channel partners in the Middle
East, Africa, Latin America, Russia and the Commonwealth of
Independent States, and Central and Eastern Europe. This additional
financing is enabled in part by the $500 million short-term growth
capital fund Cisco announced last year. Cisco Capital also announced
expanded coverage of its end-user leasing programs in emerging
markets.

To address the needs of customers in emerging markets, especially
small to medium-sized businesses (SMBs), Cisco has created an
infrastructure to accelerate the adoption of Cisco technology in
emerging markets. In the past 12 months, Cisco has added seven
specialty distributors focused on expanding regional coverage in
emerging markets, and increased its base of certified channel partners
in the theatre by approximately 20 percent. In many of the emerging
market regions, working capital is not readily available, and channel
partners face long order-to-cash cycles due to a variety of factors,
including isolated geography and government regulations. To help grow
Cisco's business in these regions, Cisco Capital has established
strong relationships with its emerging market financing partners to
help enable greater access to working capital, the lack of which has
until today been a key constraint in achieving growth potential in
these markets. Cisco Capital works closely with its financing partners
to implement the channel financing and to support the channel partners
throughout the entire order-to-cash cycle.

"The financing announced today provides the liquidity and working
capital necessary to help our emerging market channel partners grow
significantly, which is key to Cisco's Emerging Markets strategy,"
said David Rogan, president of Cisco Systems Capital Corporation. "Our
financing partners provide both local presence and cross-border
capabilities as well as an in-depth understanding of our Emerging
Markets theatre. With nearly $10 billion in third-party
inventory-financing capability today, Cisco Capital has created and
implemented a global banking infrastructure, providing significant
competitive advantage for Cisco with limited financial risk to the
company."

Cisco created the Emerging Markets theatre last year to address
the specific local market requirements and unique needs of emerging
countries. These regions are undergoing major transformation as they
grow and diversify their economies, improve government efficiency, and
educate their citizens. By focusing resources and investment in these
regions now, Cisco intends to shape demand and accelerate growth for
years to come.

"Although many countries in the emerging markets are undergoing
major social and economic transformation by implementing the most
advanced technology, the lack of capital remains a formidable
barrier," said Paul Mountford, president, Emerging Markets Theatre,
Cisco. "The breadth of financing solutions offered by Cisco Capital
and its financing partners puts Cisco technology within the reach of
our channel partners and will bring clear benefits, to both the end
customer and the people and businesses they affect."

Cisco Capital has also expanded its end-user financing
capabilities in emerging markets and now offers loan and leasing
products to Cisco customers in 15 countries. Cisco Capital recently
implemented leasing programs in South Africa, Russia, Brazil, Mexico
and Colombia. Along with its regional finance partners, Cisco Capital
plans to offer SMB financing capabilities in 14 new countries in FY07,
including those in Central America and the Caribbean, plus Saudi
Arabia, Turkey, Poland, Argentina and Chile. Cisco entered the
commercial/SMB market with the introduction of Easy Lease, a leasing
platform that provides competitive financing solutions to complement
Cisco's SMB growth initiatives. This program supplies Cisco channel
partners with a valuable tool to capture leasing opportunities in the
rapidly growing commercial/SMB market.

By utilizing Cisco Capital's short-term growth capital through
third-party financiers, Cisco can expand more rapidly and quickly help
channel partners meet their inventory-financing and cash-flow needs in
longer project payment cycles. In FY2006, more than 750 partners in 46
countries took advantage of extended terms financing.

About Cisco Capital

Cisco Systems Capital(R), a wholly-owned subsidiary of Cisco
Systems, Inc., specializes in financing networks by providing
innovative, flexible financial programs to Cisco customers and channel
partners worldwide. Cisco Capital offers attractive, flexible and
short-term financing solutions that make it possible for customers to
obtain higher credit lines and longer and more flexible terms that
ultimately help them build stronger and healthier businesses. For more
information, visit www.cisco.com/go/ciscocapitalpartners/us.

About Cisco Systems

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