List:       abacus-announce
Subject:    [Announce] RE: Cisco Systems to Acquire Psionic Software
From:       "Stephen Burke" <sburke () psionic ! com>
Date:       2002-10-22 16:32:13
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Press Contacts:						Investor Relations Contact:
Robyn Jenkins							Blair Christie
Cisco Systems, Inc.						Cisco Systems, Inc.
(408) 853-9848						(408) 525-4856
rojenkin@cisco.com						blchrist@cisco.com

Rob Barlow
Cisco Systems, Inc.
(408) 527-5018
rbarlow@cisco.com



Cisco Systems to Acquire Psionic Software
Software Reduces Network Security False Alarms, Improving Business
Productivity and Lowering Costs


	SAN JOSE, Calif., Oct. 22, 2002 –– Cisco Systems, Inc., today announced a
definitive agreement to acquire privately-held Psionic Software, Inc. of
Austin, Texas.  Psionic develops network security software that increases
the efficiency of intrusion detection systems (IDS) by reducing false alarms
by up to 95 percent.  Psionic’s software will allow Cisco security customers
to increase productivity and lower the costs associated with network-based
intrusion detection systems (NIDS) by enabling businesses to focus manpower
and attention on legitimate attacks against their networks.
	Psionic’s software addresses the number one problem associated with current
IDS security technology by reducing false alarms and quickly validating
potential security breaches.  Integrating Psionic’s software with Cisco IDS
products, which utilize multiple modes to identify malicious network
security activity, will provide enterprise customers with high-performance
security attack identification and suppression across a range of network
environments, offering a more comprehensive approach to security while
minimizing operational costs. This integration also provides the basis for
future in-line IDS architectures where today, the high rate of
mis-identified attacks often leads to the termination of legitimate network
traffic.
	Under the terms of the agreement, Cisco common stock worth an aggregate
value of up to $12 million will be exchanged for all outstanding shares and
options of Psionic Software. In connection with the acquisition, Cisco
expects a nominal one-time charge for purchased in-process research and
development expenses. The acquisition of Psionic is expected to close in the
second 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.
	Psionic’s intrusion response technology goes beyond the alarm consolidation
and correlation products on the market today by using patented adaptive
scanning techniques to rapidly validate IDS events, escalate legitimate
attacks and remediate costly intrusions. With Psionic’s unique technology,
only those qualified attacks that have the highest damage potential against
vulnerable systems will be terminated, thus ensuring maximum network
protection.
	The acquisition of Psionic Software enhances Cisco's existing network
security portfolio consisting of VPN gateways and concentrators, firewalls,
IDS and security management applications.  Cisco delivered the security
industry's first commercial network intrusion detection system in 1995.  The
acquisition of Psionic further illustrates Cisco's commitment and focus on
continued innovation and leadership in the IDS market.
	Psionic Software was founded in January 2000. Psionic’s eight employees
will join the Cisco VPN and Security Services (VSEC) business unit under the
direction of Richard Palmer, VSEC vice president and general manager.

About Cisco Systems
Cisco Systems, Inc. (NASDAQ: CSCO) is the worldwide leader in networking for
the Internet. News and information are available at www.cisco.com.

# # #

Cisco, Cisco Systems, and the Cisco Systems logo are registered trademarks
of Cisco Systems, Inc. and/or its affiliates in the U.S. and certain other
countries. All other trademarks mentioned in this document are the property
of their respective owners.

Stephen Burke
Director of Marketing
Psionic Technologies
sburke@psionic.com
(512) 681-3970 - phone
(512) 681-3951 - fax
www.psionic.com


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