--  Q1 Net Sales: $10.3 billion (increase of 8% year over year)      --  Q1 Net Income: $2.2 billion GAAP; $2.5 billion non-GAAP      --  Q1 Earnings per Share: $0.37 GAAP (increase of 6% year over year);     $0.42 non-GAAP (increase of 5% year over year)      --  Total Cash, Cash Equivalents and Investments: $26.8 billion      

Cisco (NASDAQ: CSCO), the worldwide leader in networking that transforms how people connect, communicate and collaborate, today reported its first quarter results for the period ended October 25, 2008. Cisco reported first quarter net sales of $10.3 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.2 billion or $0.37 per share, and non-GAAP net income of $2.5 billion or $0.42 per share.

"Cisco delivered solid revenue and earnings growth in what is clearly a very challenging global economy," said John Chambers, chairman and CEO, Cisco. "Our strategy and focus for managing the business through this market transition is clear -- we will manage and prioritize our resources, invest in innovation, and build even stronger relationships with our customers to help enable their success."

Chambers continued, "The essential role that the network plays in driving business productivity and competitive advantage is more relevant than ever in this current macro-economic environment. Just as we helped our customers tap the productivity and competitive advantages afforded by the first wave of the Internet, once again we are leading the transition in this second wave to create new business models built for speed, scale, flexibility and productivity, enabled by the network."

                                    GAAP Results                       Q1 2009            Q1 2008            Vs. Q1 2008                       -------------      ------------       ----------- Net Sales             $10.3 billion      $9.6 billion       +8.1% Net Income            $2.2 billion       $2.2 billion       -0.2% Earnings per Share    $0.37              $0.35              +5.7%                                    Non-GAAP Results                       Q1 2009            Q1 2008            Vs. Q1 2008                       -------------      ------------       ----------- Net Income            $2.5 billion       $2.5 billion       -0.2% Earnings per Share    $0.42              $0.40              +5.0% 

As previously disclosed, a tax benefit of $162 million or approximately $0.03 per share relating to a settlement of certain U.S. income tax matters was included in both the GAAP and non-GAAP results for the first quarter of the prior fiscal year. A reconciliation between net income on a GAAP basis and non-GAAP net income is provided in the table on page 6.

Cisco will discuss first quarter results and business outlook on a conference call and webcast at 1:30 p.m. Pacific Time today. Call information and related charts are available at http://investor.cisco.com.

Other Financial Highlights

 --  Cash flows from operations were $2.7 billion for the first quarter of     fiscal 2009, compared with $3.1 billion for the first quarter of fiscal     2008, and compared with $3.5 billion for the fourth quarter of fiscal 2008.      --  Cash and cash equivalents and investments were $26.8 billion at the     end of the first quarter of fiscal 2009, compared with $26.2 billion at the     end of fiscal 2008.      --  During the first quarter of fiscal 2009, Cisco repurchased 46 million     shares of common stock at an average price of $21.95 per share for an     aggregate purchase price of $1.0 billion.  As of October 25, 2008, Cisco     had repurchased and retired 2.6 billion shares of Cisco common stock at an     average price of $20.62 per share for an aggregate purchase price of     approximately $54.6 billion since the inception of the stock repurchase     program.  The remaining authorized repurchase amount as of October 25, 2008     was $7.4 billion with no termination date.      --  Days sales outstanding in accounts receivable (DSO) at the end of the     first quarter of fiscal 2009 were 29 days, compared with 34 days at the end     of the fourth quarter of fiscal 2008, and compared with 33 days at the end     of the first quarter of fiscal 2008.      --  Inventory turns on a GAAP basis were 11.9 in the first quarter of     fiscal 2009, compared with 11.9 in the fourth quarter of fiscal 2008, and     compared with 10.4 in the first quarter of fiscal 2008.  Non-GAAP inventory     turns were 11.6 in the first quarter of fiscal 2009, compared with 11.6 in     the fourth quarter of fiscal 2008, and compared with 10.1 in the first     quarter of fiscal 2008.      

"Cisco's solid financial performance this quarter reflected our ability to maintain profitability during a period of uncertainty," said Frank Calderoni, chief financial officer, Cisco. "With a focus on making calculated investments in strategic areas, continued prudent expense management, and a historical strength of effectively managing our financial position, we believe Cisco is well positioned to manage our business model going forward."

Select Business Highlights

 --  Announced the winner of the global Cisco I-Prize innovation     competition designed to help identify a major new business opportunity for     Cisco.      --  Launched a branch of the Global Talent Acceleration Program (GTAP) in     India, while the first cohort of GTAP students from Middle East and North     Africa Levant graduated with flying colors.      --  Evolved Cisco's small and medium-sized business (SMB) go-to-market     strategy by incorporating the Linksys(R) Small-Business Channel Partner     Program services and assets into the award-winning Cisco(R) Channel Partner     Program.      

Acquisitions and Investments

 --  In South Africa, Cisco announced a USD $27 million investment in the     Cisco Innovation Hub Technology Centre.      --  Announced Cisco's intent to acquire Denver-based Jabber, Inc., a     provider of presence and messaging software.  Jabber is expected to enhance     the existing presence and messaging functions of Cisco's collaboration     portfolio.      --  Completed the acquisition of Mountain View, Calif.-based PostPath,     Inc., a provider of innovative email and calendaring software. PostPath is     expected to enhance the existing email and calendaring capabilities of the     Cisco WebEx(R) Connect collaboration platform.      --  Completed the acquisition of Seattle-based Pure Networks, Inc., a     leader in home-networking-management software and tools. Pure Networks'     solutions are designed to allow users to easily set up and manage a home     network and connect a range of devices, applications and services.      

New Products

 --  A new collaboration portfolio that consists of Cisco Unified     Communications, Cisco TelePresence(TM) systems and a new Web 2.0     application platform, to help enable people to connect, communicate and     collaborate from any application, device and workspace.      --  The Cisco Nexus(TM) 1000V distributed virtual software switch designed     to simplify the operations of both physical and virtual networking     infrastructures, which is expected to be an integrated option in VMware     Infrastructure.      --  Cisco Virtual Office, a highly secure solution that is designed to     allow businesses to extend their enterprises by "bringing the office" to     employees who regularly work in remote settings.      --  Network Magic 5.0, a suite of network management software designed to     allow consumers to easily set up, manage, and secure their networks.      --  Cisco launched eco-friendlier packaging and announced that it has     received the ENERGY STAR certification for its power adapters that are     included in more than 30 of its Linksys by Cisco products.      

Select Customer Announcements

 --  NBC delivered coverage of the 2008 Beijing Olympic Games by providing     the Olympic experience on an anywhere, anyplace and anytime basis to     multiple delivery platforms with Cisco IP video technology.      --  BT announced the availability of BT Global Video Exchange, a service     that enables Cisco TelePresence connections between companies. With this     new service, companies can now connect to external business partners that     have Cisco TelePresence systems.      --  Amtrak deployed Cisco IP-based video surveillance to help protect     maintenance facilities.      --  HSBC opened Cisco TelePresence rooms for an 'in-person' experience at     six worldwide locations: London, Chicago, Hong Kong, Mexico City, New York     and Dubai.      --  Thailand's TT&T is deploying the first Cisco WiMAX network in Asia     Pacific, at Mae Fah Luang University.      --  Procter & Gamble deployed Cisco TelePresence systems across Latin     America to reduce employee travel and increase collaboration.      --  Residents of Russia's eastern region of Khabarovsk are to have access     to high-definition digital TV, video on demand and other multimedia     services with service provider Redcom through a metro multiservice     transport network based on Cisco technology.      --  Mobile operator Kyivstar in Ukraine upgraded its optical backbone     network with Cisco's dense wavelength-division multiplexing solution.      --  Cisco TelePresence systems now support the next-generation network     (NGN) commercial services of Japan's Nippon Telegraph and Telephone East     Corp. and Nippon Telegraph and Telephone West Corp.      --  Verizon is teaming with Cisco to offer new productivity-enhancing     managed services using the Cisco collaboration portfolio.      

Editor's Note:

 --  Q1 FY 2009 conference call to discuss Cisco's results along with its     business outlook will be held at 1:30 p.m. Pacific Time, Wednesday,     November 5, 2008.  Conference call number is 888-848-6507 (United States)     or 212-519-0847 (international).      --  Conference call replay will be available from 4:30 p.m. Pacific Time,     November 5, 2008 to 4:30 p.m. Pacific Time, November 12, 2008 at 866-357-     4205 (United States) or 203-369-0122 (international).  The replay also will     be available via webcast from November 5, 2008 through January 16, 2009 on     the Cisco Investor Relations website at http://www.cisco.com/go/investors.      --  Additional information regarding Cisco's financials, as well as a     webcast of the conference call with visuals designed to guide participants     through the call, will be available at 1:30 p.m. Pacific Time, November 5,     2008.  Text of the conference call's prepared remarks will be available     within 24 hours of completion of the call.  The webcast will include both     the prepared remarks and the question-and-answer session.  This     information, along with GAAP reconciliation information, will be available     on the Cisco Investor Relations Website at     http://www.cisco.com/go/investors.      --  A Q&A with Cisco's Chairman and CEO John Chambers and CFO Frank     Calderoni about Q1 FY 2009 results will be available at     http://newsroom.cisco.com.      --  To view a video of Cisco's CFO discussing Q1 FY2009 results, visit     Cisco's blog site, The Platform, at http://blogs.cisco.com      

About Cisco

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, visit http://newsroom.cisco.com.

This release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding future events (such as our strategy and focus for managing the business, our leadership in the transition in the second wave of the Internet, our focus on making calculated investments in strategic areas, our continued prudent expense management, and our positioning to manage our business model going forward) and the future financial performance of Cisco that involve risks and uncertainties.