Cisco Capital Builds on SMB Momentum With Low Financing Rate for Award-Winning Cisco Support

SAN JOSE, CA -- (MARKET WIRE) -- May 9, 2007 -- Cisco® (NASDAQ: CSCO) and Cisco Capital™ today introduced a low 4.25 percent financing rate on multiyear maintenance services contracts for small and medium-sized business (SMBs) and midmarket businesses. Customers can now purchase SMARTnet® and other subscription-based technical support services from Cisco channel partners on monthly payment terms up to 36 months (60 months for Cisco Unified Communications solutions). Cisco Capital has also simplified the quoting process for service-contract financing.

Cisco maintenance services contracts extend and enhance the operational lifetime of a Cisco networking device and Cisco IOS® Software, helping organizations to maximize the availability of, and minimize the risks for, systems running mission-critical applications. Multiyear contracts provide the most convenience, locking in prices and eliminating the inconvenience of renewing on an annual basis. The below-market 4.25 percent rate was previously available only to enterprise customers purchasing multiyear services contracts. This successful program has now been expanded to cover Cisco's fast-growing SMB and midmarket segments.

"Our channel partners tell us that their SMB customers want the protection that comes with a multiyear services contract, but few have the cash to pay for it upfront," said Maryann Von Seggern, director of worldwide channel development, Cisco Systems Capital Corp. "This competitive 4.25 percent financing rate is aimed at helping channel partners increase the adoption of multiyear Cisco services contracts and generating additional revenue. The financing program provides an incentive for channel partners to offer a multiyear service agreement with every sale and offers a compelling value proposition for the customer."

Cisco Capital has also simplified the quoting and documentation process for renewing services contracts. Channel partners can now receive a multiyear financing quote with each contract renewal quote from Cisco. This information makes it easier for channel partners to bring financing to more Cisco SMB transactions. Customers may request monthly or quarterly payments for services financing.

"SMB customers are more often taking a long-term managed approach to their network as they realize the importance of continuity and total life cycle to the health of a business," said Cyndi Privett, vice president of research with Viewpoint Research. "Financing is an increasingly important sales tool for partners to sell services into the SMB market segment. By offering low financing on multiyear contracts to its SMBs, Cisco has made it possible for these customers to receive the same optimal maintenance services benefits that enterprises have enjoyed for years. This offering gives Cisco partners another tool to make it affordable for SMBs to have the technology and services they need to be competitive."

"This low financing rate gives us a tremendous opportunity to drive multiyear service contracts sales and make them part of every solution package we bring to our SMB customers," said Bob Stall, director of leasing, Insight Enterprises. "Clients can lock in maintenance costs and spread them over convenient monthly payments. As a result, we expect to grow our volume of maintenance contracts this year."

Over the past three years, Cisco has invested billions in the SMB voice and networking market, a segment that is growing more than 20 percent annually, according to some industry analysts. Cisco Capital's financing tools and programs are fully integrated with Cisco's SMB partner strategy, specifically designed to help partners who sell to SMBs and midmarket businesses increase their competitive advantage and drive more business within this rapidly growing customer segment. For more information about Cisco Capital and services financing, see www.cisco.com/go/ciscocapitalpartners/us.

Program Requirements

Services finance offerings are available from Cisco Capital to end users purchasing eligible multiyear Cisco services in the United States and Canada. Cisco subscription-based services (including Advanced Services) with a fixed contract price are eligible. All offers are subject to credit approval. There is no minimum purchase price for multiyear service contract financing.

About Cisco Capital

Cisco Systems Capital Corporation, 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

Cisco (NASDAQ: CSCO) is the worldwide leader in networking that transforms how people connect, communicate and collaborate. Information about Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com.

Cisco, the Cisco logo, Cisco Capital, Cisco Systems, IOS and SMARTnet are registered trademarks or trademarks of Cisco Systems, Inc. and/or its affiliates in the United States and certain other countries. All other trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.

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Contact Information: Press Contact: Ron Schmidt Cisco 408 525-6088 ronschm@cisco.com Analyst Relations Contact: Ron Davis Cisco 408 526-8803 ronadavi@cisco.com