SHENZHEN, China -- Cisco, Huawei and 3Com filed a stipulation and order of dismissal with prejudice in the lawsuit filed by Cisco against Huawei in the United States District Court, Eastern District of Texas, Marshall Division. This fully and finally resolves the lawsuit brought by Cisco against Huawei. 3Com was not a party to the original action but intervened in the case because of its joint venture with Huawei.

As previously announced in a joint public statement regarding an agreement signed on September 30, 2003, the parties “agreed on a course of action that they expect[ed] – upon full implementation and pending completion of an independent expert review process – [would] lead to the end of the lawsuit.” Today’s filing concludes this review process.

Huawei is extremely pleased that the litigation between Cisco and Huawei is now ended, and looks forward to continuing to compete on the merits of the products from its joint venture with 3Com.

The order of dismissal with prejudice resolves all of the claims made by Cisco in its lawsuit against Huawei. “Dismissal with prejudice” is significant in that Cisco cannot bring another lawsuit against Huawei in the future asserting the same or substantially similar claims. The order of dismissal provides that each party will bear its own costs and attorney’s fees with respect to this dismissal.

Huawei Technologies Co. Ltd.

Cisco Systems Inc.