Cisco to Acquire AYR Networks

July 29, 2002 -- Internet networking technology developer Cisco Systems (Cisco.com) announced late last week that it has entered a definitive agreement to acquire privately-held networking services and routing software technology developer AYR Networks.

According to Cisco, AYR Networks’ technology and expertise will contribute to the evolution of Cisco IOS Software, the network systems software used by Cisco’s routing and switching platforms.

The potential acquisition of AYR Networks was previously described in Cisco’s Form 10-Q filings with the SEC for the second and third quarters of fiscal 2002.

Cisco says AYR networks’ technology and engineering techniques will enhance the company’s ability to integrate software from multiple sources, including the faster development of new features and functions.

According to the agreement, Cisco will exchange common stock worth $113 million for all outstanding shares and options of AYR Networks not already owned by Cisco, which currently holds a minority interest in AYR. Cisco says it expects a one-time combined charge for purchased in-process research and development expenses not to exceed $0.01 per share.

The acquisition, says Cisco, has received approval from both companies, and is subject to certain closing conditions. The companies expect the deal to close in the first quarter of Cisco’s fiscal year 2003.