Good Citizenship Benefits Corporate Bottom Line

Cisco’s First “Citizenship Report” Describes Social Responsibility Initiatives, Details Millions of Dollars in Annual Energy Savings

SAN JOSE, Calif., November 7, 2005 - Cisco Systems today released its first annual Citizenship Report, a summary of the company’s responsible business practices and social investment programs for the fiscal years 2004 and 2005. The report underscores that a focus on social responsibility and social investment is not only is the right thing to do, it also benefits Cisco’s bottom line.

The report can be viewed and downloaded online at www.cisco.com/go/citizenship.

“I believe that those corporations that are most successful have an obligation to give back to the communities in which they operate. ,” said Cisco president and CEO John Chambers. “Cisco is committed to being a good corporate citizen. It is not just the right thing to do-it is also good for business.”

The Cisco Citizenship Report affirms the company’s commitment to its employees, the environment, and multi-cultural societies around the world. Highlights of the report include the following:

* Energy and environment: Decreased energy consumption has saved Cisco and its shareholders more than $6 million a year and reduced annual greenhouse gas emissions by 23,000 tons. In San Jose, 9.5 percent of the energy consumed by Cisco comes from renewable sources, representing approximately 35,000,000KWh each year. This translates to the elimination of some 12,700 metric tons of carbon dioxide which is the equivalent of removing 3,000 cars from the road.


* Education and economic development: In partnership with the World Health Organization, the Cisco Health Academy -- operating in 24 schools in Egypt and 21 in Jordan thus far -- is using the Internet to provide health and wellness information to inhabitants of remote and underserved areas. Cisco’s Jordan Education Initiative, in 100 schools to date, is providing information, communication equipment and expertise in support of the country’s goal to create a knowledge economy through education reform.


* Corporate volunteerism: More than 40 percent of Cisco employees volunteered their time in community service during the past year, contributing a total of 235,000 hours. The company has challenged itself to increase volunteerism hours by 10 percent in FY 2006. In response to the Asian tsunami and Hurricane Katrina, Cisco and its employees contributed time and technical expertise, along with millions of dollars in cash and in-kind donations to aid those in need.


* Philanthropy: In FY 2005, the Cisco Systems Foundation awarded $10.5 million to nonprofits for projects around the world, part of a total corporate donation of over $65 million in cash and in-kind contributions. Cisco’s focus is on impact, leveraging its strategic portfolio of social investments and effectively utilizing the company’s human resources, technology and cash.


* Cisco and Citizenship: Other facets of corporate citizenship assessed in the report include diversity, product and workplace accessibility, employee development and work-life balance, supply chain management and diversity, corporate governance, human rights, executive compensation, and public policy and political contributions.

“I truly believe that technology can be an equalizing force in the global economy,” Chambers said. “Our corporate citizenship practices help improve the communities in which we operate, build trust, celebrate our employees, and encourage innovation.”

Cisco has consistently been named one of the “100 Best Companies to Work For” by Working Mother and Computer World magazines and one of the “50 Best Companies” by Latina Style. On FORTUNE magazine’s list of the “100 Best Large Companies to Work for in America” Cisco ranked fourth in 2005, marking the company’s eighth consecutive year in the rankings.

Cisco’s first annual Corporate Citizenship report shows the evolution of our ideas and the progress the company has made in recent activities and initiatives. We will continue to report annually on the progress we make with our Corporate Citizenship initiatives.

“Good corporate citizenship is not a destination, but a long- term commitment for Cisco,” said Tae Yoo, Vice President for Corporate Affairs. “We will continue to listen and learn from our employees, customers, partners, shareholders, and community, and we welcome their input as we continually strive to improve our company practices.”

Questions, comments, and inquiries about the Cisco Citizenship Report or any aspect of Cisco’s corporate citizenship can be e-mailed to: citizenship@cisco.com.

About Cisco Systems

Cisco Systems, Inc (NASDAQ:CSCO) the worldwide leader in networking for the Internet, this year celebrates 20 years of commitment to technology innovation, industry leadership and corporate social responsibility. Information on Cisco can be found at http://www.cisco.com. For ongoing news, go to http://newsroom.cisco.com

Contact Information

Abby Smith

Press Contact

Cisco Systems, Inc.

Contact via E-mail