SAN JOSE, Calif. -- Cisco Systems, Inc., today announced a definitive agreement to acquire privately-held Allegro Systems, Inc. of Milpitas, California. Allegro Systems is developer of Virtual Private Network (VPN) acceleration technologies designed to enhance the performance and functionality of secure networking platforms. The acquisition of Allegro Systems enhances Cisco's existing VPN and security solutions with added performance capabilities to meet the growing security requirements of organizations connecting remote offices, employees and customers to corporate networks and the Internet. Under the terms of the agreement, Cisco common stock worth a gross aggregate value of up to $181 million will be exchanged for all outstanding shares and options of Allegro Systems. Cisco currently holds a minority investment in Allegro Systems. This acquisition will be accounted for as a purchase and is expected to close in the first quarter of Cisco's fiscal year 2002. In connection with the acquisition, Cisco expects a one-time charge for purchased in-process research and development expenses not to exceed $0.01 per share. The acquisition has been approved by the board of directors of each company and is subject to various closing conditions including approval under the Hart Scott Rodino Antitrust Improvements Act. Cisco Systems Inc.