SOURCE: Cisco Systems, Inc.

November 01, 2007 02:30 ET

Cisco Announces Strategic Initiative With China Development Bank to Promote Sustainable Economic Growth in China

Innovative Strategy to Invest in High-Growth Chinese Companies Across Multiple Sectors

BEIJING--(Marketwire - November 1, 2007) - Cisco® (NASDAQ: CSCO) announced today that it intends to collaborate with China Development Bank (CDB) to invest in innovative Chinese companies leading the country's sustainable economic development. The program was announced today at a press conference after a memorandum of understanding signing ceremony attended by Gao Jian, vice governor of the CDB and John Chambers, chairman and CEO of Cisco.

The joint initiative will focus on Chinese companies with strong growth potential who are deploying innovative technologies in a range of market segments, including information technology and communications, green technology, education and healthcare, and other priority areas that underpin China's long-term sustainable growth.

To manage the program, Cisco and CDB will establish a standing steering committee to oversee collaboration and decisions between the parties. Designated representatives of CDB and Cisco will hold regular meetings to review and facilitate potential opportunities and existing collaboration projects.

"Cisco has a long track record of driving IT market growth through investment in the innovation economy," said Cisco Chairman and CEO, John Chambers. "By collaborating with the CBD -- the key policy bank driving China's market-led and balanced development initiatives -- we believe we can make a meaningful impact to support high growth companies in China that are supporting sustainable long-term development."

Cisco's contribution to the strategic initiative adds to the company's already sizable investments in China. Over the last several years, Cisco has invested over USD $700 million in both direct and in-direct venture and private equity investments in China. These investments are in addition to Cisco's normal business operations in R&D, sales, service, capital financing, and supply chain sourcing in China, which the company estimates in excess of USD $8.5 billion during the last five years.

About China Development Bank (CDB)

China Development Bank (www.cdb.com.cn), founded in March 1994, is under the direct jurisdiction of the State Council. At present it has 32 branches and 4 representative offices across the country. CDB has been a major player in long-term financing for key projects in infrastructure, basic industries and pillar industries, which are vital to the development of the national economy. During the recent years, CDB has enhanced its support to the bottleneck sectors and development areas, including SMEs, technology and innovation, energy saving and emission reduction, environmental protection, and the development of New Rural Communities, etc., in order to promote a harmonious society.

About Cisco Systems

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