Exhibit 99.1

Press Contact:	Investor Relations Contact:
Robyn Jenkins-Blum	Blair Christie
Cisco Systems, Inc.	Cisco Systems, Inc.
(408) 853-9848	(408) 525-4856
rojenkin@cisco.com	blchrist@cisco.com

CISCO SYSTEMS REPORTS FIRST QUARTER EARNINGS

Company Also Announces $10 Billion Increase in Stock Repurchase Program

• Q1 Net Sales: $6.0 billion (17.1% increase year over year; 0.8% increase quarter over quarter)

• Q1 GAAP Net Income: $1.4 billion (28.5% increase year over year; 1.2% increase quarter over quarter)

• Q1 Earnings Per Share: $0.21 GAAP; $0.21 pro forma

SAN JOSE, Calif. — November 9, 2004 — Cisco Systems, Inc., the worldwide leader in networking for the Internet, today reported its first quarter results for the period ended October 30, 2004.

Net sales for the first quarter of fiscal 2005 were $6.0 billion, compared with $5.1 billion for the first quarter of fiscal 2004, an increase of 17.1 percent, and compared with $5.9 billion for the fourth quarter of fiscal 2004, an increase of 0.8 percent.

Net income for the first quarter of fiscal 2005, on a generally accepted accounting principles (GAAP) basis, was $1.4 billion or $0.21 per share, compared with $1.1 billion or $0.15 per share for the first quarter of fiscal 2004, and compared with $1.4 billion or $0.20 per share for the fourth quarter of fiscal 2004. Pro forma net income for the first quarter of fiscal 2005 was $1.5 billion or $0.21 per share, compared with $1.2 billion or $0.17 per share for the first quarter of fiscal 2004, and compared with $1.5 billion or $0.21 per share for the fourth quarter of fiscal 2004. A reconciliation between net income on a GAAP basis and pro forma net income is provided in a table immediately following the Pro Forma Consolidated Statements of Operations.

During the first quarter of fiscal 2005, Cisco completed the acquisition of Actona Technologies, Inc. for a purchase price of $90 million; the acquisition of dynamicsoft, Inc. for a purchase price of $69 million; the acquisition of Parc Technologies Limited for a purchase price of $14 million; the acquisition of P-Cube Inc. for a purchase price of $213 million; and the purchase of certain assets of Procket Networks, Inc. for a purchase price of $92 million.

“Cisco started the fiscal year with solid results across nearly all of our key financial metrics, highlighted by a record-breaking quarter in terms of GAAP net income and earnings per share, and our sixth consecutive quarter of sequential revenue growth,” said John Chambers, president and CEO, Cisco Systems. “Our execution also remained solid across our key product categories, industry segments, advanced technologies and geographies.”

Chambers continued, “As customers integrate data, voice and video across a combination of networks, they are asking for a common technology architecture to deliver networked applications and services in a way that is transparent to the end user. And, as Cisco approaches its 20^th anniversary, we believe we are uniquely positioned,

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based on our strategy of investing across customer markets, emerging geographic markets, as well as in both technology and business architectures, to address the future evolution of networking - the Intelligent Information Network.”

Cisco will discuss first quarter 2005 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.

Stock Repurchase Program Expanded

Cisco today also announced that on November 8, 2004 its board of directors authorized up to $10 billion in additional repurchases of its common stock. Cisco’s board had previously authorized up to $25 billion in stock repurchases. There is no fixed termination date for the repurchase program. The remaining authorized amount for stock repurchases under this program, including the additional authorization, is approximately $15 billion.

Financial Highlights

• Cash flows from operations were $1.5 billion for the first quarter of fiscal 2005, compared with $1.0 billion for the first quarter of fiscal 2004, and compared with $2.1 billion for the fourth quarter of fiscal 2004.

• Cash and cash equivalents and total investments were $17.7 billion at the end of the first quarter of fiscal 2005, compared with $19.3 billion at the end of the fourth quarter of fiscal 2004.

• During the first quarter of fiscal 2005, Cisco repurchased 156 million shares of common stock at an average price of $19.24 per share for an aggregate purchase price of $3.0 billion. As of October 30, 2004, Cisco had repurchased and retired 1.1 billion shares of Cisco common stock at an average price of $17.92 per share for an aggregate purchase price of approximately $20 billion since the inception of the stock repurchase program.

• Days sales outstanding (DSO) in accounts receivable at the end of the first quarter of fiscal 2005 were 27 days, compared with 28 days at the end of the fourth quarter of fiscal 2004.

• Inventory turns were 6.5 in the first quarter of fiscal 2005, compared with 6.4 in the fourth quarter of fiscal 2004.

“Cisco continues to execute well across several key operational metrics,” said Dennis Powell, chief financial officer, Cisco Systems. “For the tenth consecutive quarter, Cisco’s pro forma net income exceeded $1 billion, cash flow from operations remained strong and productivity, driven by operating expense management, continued to improve.”

Business Highlights

• Continuing the focus on the Network Admission Control (NAC) program, Cisco announced collaborations with IBM, Microsoft and Computer Associates. The NAC initiative is designed to reduce the damage and disruption that viruses, worms and other security vulnerabilities can cause networked businesses.

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• Cisco announced that Bank of America is deploying 180,000 Cisco Internet Protocol (IP) telephones at 5,800 locations throughout the United States, and Ford Motor Company plans to install 50,000 Cisco IP phones in 110 offices throughout Michigan.

• Linksys, a division of Cisco, announced a new line of consumer voice-over-IP (VoIP) products, including a broadband router and telephone adapter. Linksys also announced it is working with AT&T, Vonage and Verizon to deliver VoIP products to consumers.

• Cisco introduced a new line of integrated services routers, designed to deliver secure, wire-speed data, voice and video and other advanced services to small and medium-sized businesses, enterprise branch offices, and service providers for managed network services offerings.

• Cisco introduced a new line of Cisco Catalyst® switching products and services specifically designed and priced for small and medium-sized businesses.

• Cisco announced the intent to open a research and development center in Shanghai, China. The new facility will represent an initial $32 million investment over the next five years.

• Qatar Telecom commissioned the construction of a new IT data center, the first large-scale data center of its kind in the Qatar region, with a networking infrastructure based around a Cisco integrated systems approach.

• Germany’s Media-Saturn is expected to implement the Cisco Intelligent Retail network framework, including 40,000 IP phones and wireless access points, in almost 500 stores within 11 European countries.

Editor’s Note:

• Q1 FY’05 conference call to discuss Cisco’s results along with its outlook for Q2 FY’05 to be held at 1:30 p.m. Pacific Time on Tuesday, November 9, 2004. Conference call number is 800-369-1706 (United States); 773-756-4817 (international).

• Conference call replay will be available from 4:30 p.m. Pacific Time on November 9, 2004 to 4:30 p.m. Pacific Time on November 16, 2004 at 866-391-4974 (United States); 203-369-0426 (international). The replay is also available from November 9, 2004 through January 21, 2005 on the Cisco Investor Relations Website at http://www.cisco.com/go/investors.

• Additional information regarding Cisco’s financials and corresponding Webcast with visuals designed to guide participants through the call will also be available at 1:30 p.m. Pacific Time. Prepared remarks will be available approximately 24 hours after 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 www.cisco.com/go/investors.

• Additional information regarding Cisco’s Q1 FY’05 results, including executive Q&A, will be available at http://newsroom.cisco.com.

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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, please go to 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 Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding future events and the future financial performance of Cisco that involve risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including: business and economic conditions and growth trends in the networking industry and in various geographic regions; global economic conditions and uncertainties in the geopolitical environment; overall information technology spending; the growth of the Internet and levels of capital spending on Internet-based systems; variations in customer demand for products and services, including sales to the service provider market; the timing of orders and manufacturing lead times; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; variability of component costs; variations in sales channels, product costs or mix of products sold; the ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired businesses and technologies; increased competition in the networking industry; dependence on the introduction and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks; product defects and returns; litigation involving patents, intellectual property, antitrust, shareholder and other matters; the ability to recruit and retain key personnel; our ability to manage financial risk; currency fluctuations and other international factors; potential volatility in operating results and other factors listed in Cisco’s most recent reports on Form 10-K, 10-Q and 8-K. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in Cisco’s most recent reports on Form 10-K and Form 10-Q, each as it may be amended from time to time. Cisco’s results of operations for the three months ended October 30, 2004 are not necessarily indicative of Cisco’s operating results for any future periods. Any projections in this release are based on limited information currently available to Cisco, which is subject to change. Although any such projections and the factors influencing them will likely change, Cisco will not necessarily update the information, since Cisco will only provide guidance at certain points during the year. Such information speaks only as of the date of this release.

Cisco provides pro forma net income and pro forma net income per share data as additional information to help investors better understand its operating results. These measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from pro forma measures used by other companies. Cisco believes that this presentation of pro forma net income and pro forma net income per share provides useful information to management and investors regarding certain additional financial and business trends relating to its financial condition and results of operations. Cisco believes when GAAP net income and GAAP net income per share are viewed in conjunction with pro forma net income and pro forma net income per share, investors are provided with a more meaningful understanding of Cisco’s ongoing operating performance. In addition, Cisco’s management uses these measures for reviewing the financial results of Cisco.

Copyright^© 2004 Cisco Systems, Inc. All rights reserved. Cisco, Cisco Systems, the Cisco Systems logo, Catalyst, and Linksys are registered trademarks or trademarks of Cisco Systems, Inc. and/or its affiliates in the U.S. and certain other countries. All other trademarks mentioned in this document or Website 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.

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Cisco Systems, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per-share amounts)

(Unaudited)

	Three Months Ended
	October 30, 2004		October 25, 2003
NET SALES:
Product	$	5,033	$	4,263
Service		938		838
Total net sales		5,971		5,101
COST OF SALES:
Product		1,646		1,316
Service		310		279
Total cost of sales		1,956		1,595
GROSS MARGIN		4,015		3,506
OPERATING EXPENSES:
Research and development		787		735
Sales and marketing		1,102		1,071
General and administrative		225		195
Payroll tax on stock option exercises		1		2
Amortization of deferred stock-based compensation		40		51
Amortization of purchased intangible assets		60		62
In-process research and development		12		—
Total operating expenses		2,227		2,116
OPERATING INCOME		1,788		1,390
Interest income		130		137
Other income, net		40		1
Interest and other income, net		170		138
INCOME BEFORE PROVISION FOR INCOME TAXES		1,958		1,528
Provision for income taxes		562		442
NET INCOME	$	1,396	$	1,086
Net income per share:
Basic	$	0.21	$	0.16
Diluted	$	0.21	$	0.15
Shares used in per-share calculation:
Basic		6,635		6,932
Diluted		6,773		7,110

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Cisco Systems, Inc.

PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per-share amounts)

(Unaudited)

	Three Months Ended
	October 30, 2004			October 25, 2003
NET SALES:
Product	$	5,033		$	4,263
Service		938			838
Total net sales		5,971			5,101
COST OF SALES:
Product		1,646			1,316
Service		310			279
Total cost of sales		1,956			1,595
GROSS MARGIN		4,015			3,506
OPERATING EXPENSES:
Research and development		787			735
Sales and marketing		1,102			1,071
General and administrative		225			195
Total operating expenses (a) (b) (c) (d)		2,114			2,001
OPERATING INCOME (a) (b) (c) (d)		1,901			1,505
Interest income		130			137
Other income (loss), net (e)		(13	)		1
Interest and other income (loss), net (e)		117			138
INCOME BEFORE PROVISION FOR INCOME TAXES (a) (b) (c) (d) (e)		2,018			1,643
Provision for income taxes (f)		565			460
NET INCOME	$	1,453		$	1,183
Net income per share:
Basic	$	0.22		$	0.17
Diluted	$	0.21		$	0.17
Shares used in per-share calculation:
Basic		6,635			6,932
Diluted		6,773			7,110
A reconciliation between net income on a GAAP basis and pro forma net income is as follows:
GAAP net income	$	1,396		$	1,086
(a) In-process research and development		12			—
(b) Payroll tax on stock option exercises		1			2
(c) Amortization of deferred stock-based compensation		40			51
(d) Amortization of purchased intangible assets		60			62
(e) Gain on publicly traded equity securities		(53	)		—
(f) Income tax effect		(3	)		(18	)
Pro forma net income	$	1,453		$	1,183

For the three month period ended July 31, 2004, pro forma net income and pro forma net income per share excluded the following items: payroll tax on stock option exercises of $4 million, amortization of deferred stock-based compensation of $56 million, amortization of purchased intangible assets of $60 million, and income tax effect of ($20) million.

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Cisco Systems, Inc.

CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

	October 30, 2004		July 31, 2004
ASSETS
Current assets:
Cash and cash equivalents	$	3,309	$	3,722
Short-term investments		3,489		4,947
Accounts receivable, net of allowance for doubtful accounts of $179 at October 30, 2004 and July 31, 2004		1,792		1,825
Inventories		1,210		1,207
Deferred tax assets		1,798		1,827
Prepaid expenses and other current assets		878		815
Total current assets		12,476		14,343
Investments		10,929		10,598
Property and equipment, net		3,279		3,290
Goodwill		4,535		4,198
Purchased intangible assets, net		399		325
Other assets		2,695		2,840
TOTAL ASSETS	$	34,313	$	35,594
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	680	$	657
Income taxes payable		1,161		963
Accrued compensation		1,187		1,466
Deferred revenue		3,291		3,527
Other accrued liabilities		2,307		2,090
Total current liabilities		8,626		8,703
Deferred revenue		970		975
Total liabilities		9,596		9,678
Minority interest		128		90
Shareholders’ equity		24,589		25,826
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	34,313	$	35,594

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Cisco Systems, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

	Three Months Ended
	October 30, 2004			October 25, 2003
Cash flows from operating activities:
Net income	$	1,396		$	1,086
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		291			397
Provision for doubtful accounts		—			7
Provision for inventory		62			35
Deferred income taxes		74			116
Tax benefits from employee stock option plans		48			62
In-process research and development		12			—
Net (gains) losses and impairment charges on investments		(44	)		1
Change in operating assets and liabilities:
Accounts receivable		37			(44	)
Inventories		(63	)		(37	)
Prepaid expenses and other current assets		(10	)		(39	)
Accounts payable		16			8
Income taxes payable		188			(16	)
Accrued compensation		(283	)		(286	)
Deferred revenue		(241	)		(101	)
Other accrued liabilities		28			(216	)
Net cash provided by operating activities		1,511			973
Cash flows from investing activities:
Purchases of short-term investments		(1,735	)		(2,969	)
Proceeds from sales and maturities of short-term investments		3,535			3,065
Purchases of investments		(3,437	)		(5,076	)
Proceeds from sales and maturities of investments		3,002			6,153
Acquisition of property and equipment		(159	)		(173	)
Acquisition of businesses, net of cash and cash equivalents		(229	)		—
Change in lease receivables, net		(52	)		4
Change in investments in privately held companies		(48	)		(14	)
Other		70			64
Net cash provided by investing activities		947			1,054
Cash flows from financing activities:
Issuance of common stock		96			173
Repurchase of common stock		(3,001	)		(1,998	)
Other		34			31
Net cash used in financing activities		(2,871	)		(1,794	)
Net (decrease) increase in cash and cash equivalents		(413	)		233
Cash and cash equivalents, beginning of period		3,722			3,925
Cash and cash equivalents, end of period	$	3,309		$	4,158

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Cisco Systems, Inc.

ADDITIONAL FINANCIAL INFORMATION

(In millions)

(Unaudited)

	October 30, 2004			July 31, 2004
CASH AND CASH EQUIVALENTS AND TOTAL INVESTMENTS
Cash and cash equivalents	$	3,309		$	3,722
Fixed income securities		13,174			14,411
Publicly traded equity securities		1,244			1,134
Total	$	17,727		$	19,267
INVENTORIES
Raw materials	$	60		$	58
Work in process		408			459
Finished goods:
Distributor inventory and deferred cost of sales		338			316
Manufacturing finished goods		235			206
Service-related spares		141			134
Total finished goods		714			656
Demonstration systems		28			34
Total	$	1,210		$	1,207
PROPERTY AND EQUIPMENT, NET
Land, buildings, and leasehold improvements	$	3,457		$	3,429
Computer equipment and related software		1,164			1,120
Production, engineering, and other equipment		2,737			2,643
Operating lease assets		101			94
Furniture and fixtures		359			356
		7,818			7,642
Less, accumulated depreciation and amortization		(4,539	)		(4,352	)
Total	$	3,279		$	3,290
LEASE RECEIVABLES, NET (a)
Current	$	236		$	215
Noncurrent		254			231
Total	$	490		$	446
OTHER ASSETS
Deferred tax assets	$	1,027		$	1,130
Investments in privately held companies		345			354
Income tax receivable		690			690
Lease receivables, net		254			231
Other		379			435
Total	$	2,695		$	2,840
DEFERRED REVENUE
Service	$	2,885		$	3,047
Product		1,376			1,455
Total	$	4,261		$	4,502
Reported as:
Current	$	3,291		$	3,527
Noncurrent		970			975
Total	$	4,261		$	4,502

(a) The current portion of lease receivables, net, is recorded in prepaid expenses and other current assets, and the noncurrent portion is recorded in other assets in the Consolidated Balance Sheets.

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