SAN JOSE, Calif. -- Cisco Systems Inc., today announced a definitive agreement to acquire privately-held Okena, Inc. of Waltham, Mass. Okena's next-generation network security software provides threat protection for desktop and server computing systems, also known as "endpoints," by identifying and preventing malicious behavior before it causes harm. With the addition of Okena's endpoint security software, Cisco will offer its customers the most comprehensive network security threat protection portfolios for securing large corporate networks. The acquisition of Okena enhances Cisco's leadership in the rapidly growing market segment for networking security. Under the terms of the agreement, Cisco common stock worth an aggregate value of approximately $154 million will be exchanged for all outstanding shares and options of Okena. In connection with the acquisition of Okena, Cisco expects a one-time charge for purchased in-process research and development expenses not to exceed $0.01 per share. The acquisition of Okena is expected to close in the third quarter of Cisco's fiscal year 2003. The acquisition has been approved by the board of directors of each company and is subject to various closing conditions. "The acquisition of Okena reinforces Cisco's commitment to leadership in the network security market and is part of a significant initiative to more tightly integrate network and endpoint security," said Richard Palmer, vice president and general manager, Cisco Virtual Private Network and Security (VSEC) Business Unit. "By removing endpoint vulnerabilities, Okena's preventive software solution enhances the overall security, availability and integrity of corporate networks." Okena was founded in 1999. Okena's 52 employees will join the Cisco Virtual Private Network and Security Business Unit under the direction of Richard Palmer. Cisco Systems Inc.