SAN JOSE, Calif. -- Cisco Systems, Inc., today announced a definitive agreement to acquire publicly-held Latitude Communications, Inc. of Santa Clara, Calif. Latitude is a leading provider of enterprise conferencing products with its MeetingPlace audio and web conferencing solution. The acquisition advances Cisco's leadership in IP communications by adding rich-media conferencing, which combines voice, video and web conferencing, to Cisco's Architecture for Voice, Video and Integrated Data (AVVID) product portfolio.

Under the terms of the agreement, Cisco will pay $3.95 in cash for each outstanding share of Latitude, or approximately $80 million in the aggregate, and will convert outstanding Latitude options to Cisco options. The acquisition of Latitude is expected to close in the second quarter of Cisco's fiscal year 2004. In connection with the acquisition, Cisco expects a nominal one-time charge for purchased in-process research and development expenses. The acquisition is subject to Latitude stockholder approval, various standard closing conditions, and regulatory approvals.

"Bringing a leader in enterprise rich-media conferencing together with the leader in IP voice communications makes perfect sense," said Don Proctor, vice president and general manager, Cisco's Voice Technology Group. "This acquisition will enable Cisco to accelerate delivery of intelligent multimedia conferencing solutions which take advantage of dynamic network information -- such as presence and location data about network users -- to improve workplace productivity. Basing these products on industry standards, such as SIP, H.323 and XML, ensures solutions that seamlessly integrate voice and video conferencing, as well as emerging technologies such as instant messaging and data collaboration."

"We believe that Cisco's industry leadership position, strong customer focus, and commitment to technological excellence will provide the ideal combination to bring the benefits of rich-media conferencing to more customers than ever before," said Rick McConnell, chief executive officer, Latitude Communications. "Latitude is enthusiastically entering this new relationship and welcomes the opportunity to contribute to Cisco's strategic direction."

Cisco Systems Inc.

Latitude Communications, Inc.