<SUBMISSION>
<ACCESSION-NUMBER>0000950149-01-501469
<TYPE>DEF 14A
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20011113
<FILING-DATE>20011001
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>CISCO SYSTEMS INC
<CIK>0000858877
<ASSIGNED-SIC>3576
<IRS-NUMBER>770059951
<STATE-OF-INCORPORATION>CA
<FISCAL-YEAR-END>0731
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>DEF 14A
<ACT>34
<FILE-NUMBER>000-18225
<FILM-NUMBER>1749090
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>170 WEST TASMAN DR
<CITY>SAN JOSE
<STATE>CA
<ZIP>95134-1706
<PHONE>4085264000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>225 WEST TASMAN DR
<CITY>SAN JOSE
<STATE>CA
<ZIP>95134-1706
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>f75518adef14a.htm
<DESCRIPTION>DEFINITIVE PROXY STATEMENT - CISCO SYSTEMS, INC.
<TEXT>
<HTML>
<HEAD>
<TITLE>Definitive Proxy Statement - CISCO Systems, Inc.</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<P align="center"><FONT size="2"><B>SCHEDULE 14A INFORMATION</B></FONT>

<P align="center"><FONT size="2"><B>PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934</B></FONT>

<P><FONT size="2">Filed by the Registrant &#091;X&#093;
</FONT>
<P><FONT size="2">Filed by a Party other than the Registrant &#091;&nbsp;&nbsp;&nbsp;&#093;
</FONT>
<P><FONT size="2">Check the appropriate box:
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="2%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="95%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&#091;&nbsp;&nbsp;&nbsp;&#093;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Preliminary Proxy Statement</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&#091;X&#093;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Definitive Proxy Statement</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&#091;&nbsp;&nbsp;&nbsp;&#093;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Confidential, for Use of the Commission Only (as permitted by Rule&nbsp;14a-6(e)(2))</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&#091;&nbsp;&nbsp;&nbsp;&#093;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Definitive Additional Materials</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&#091;&nbsp;&nbsp;&nbsp;&#093;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Soliciting Material Pursuant to sec. 240.14a-11(c) or sec. 240.14a-12</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P>&nbsp;</P>
<P>


<P align="center"><FONT size="2">CISCO SYSTEMS, INC.</FONT>
<HR size="1" noshade>
<DIV align="center"><FONT size="2"><B>(Name of Registrant as Specified In Its Charter)</B></FONT></DIV>

<P>&nbsp;</P>
<P>


<P align="center"><FONT size="2">&nbsp;</FONT>
<HR size="1" noshade>
<DIV align="center"><FONT size="2"><B>(Name of Person(s) Filing Proxy Statement, if other than the Registrant)</B></FONT></DIV>

<P><FONT size="2">Payment of Filing Fee (Check the appropriate box):
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="2%">&nbsp;</TD>
        <TD width="93%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&#091;X&#093;</FONT></TD>
        <TD align="left" valign="top" colspan="4"><FONT size="2">&nbsp;&nbsp;Fee not required.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&#091;&nbsp;&nbsp;&nbsp;&#093;</FONT></TD>
        <TD align="left" valign="top" colspan="4"><FONT size="2">&nbsp;&nbsp;Fee computed on table below per Exchange Act Rules&nbsp;14a-6(i)(4) and 0-11.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
(1)
</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top" colspan="2"><FONT size="2">Title of each class of securities to which transaction applies:<BR><BR>
        <HR size="1" noshade></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
(2)
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">Aggregate number of securities to which transaction applies:<BR><BR>
        <HR size="1" noshade></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
(3)
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">Per unit price or other underlying value of transaction
computed pursuant to Exchange Act Rule&nbsp;0-11 (set forth the
amount on which the filing fee is calculated and state how it
was determined):<BR><BR>
        <HR size="1" noshade></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
(4)
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">Proposed maximum aggregate value of transaction:<BR><BR>
        <HR size="1" noshade></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
(5)
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">Total fee paid:<BR><BR>
        <HR size="1" noshade></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&#091;&nbsp;&nbsp;&nbsp;&#093;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top" colspan="3"><FONT size="2">Fee paid previously with preliminary materials.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&#091;&nbsp;&nbsp;&nbsp;&#093;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top" colspan="3"><FONT size="2">Check box if any part of the fee is offset as provided by Exchange Act Rule&nbsp;0-11(a)(2) and identify the
filing for which the offsetting fee was paid previously. Identify the previous filing by registration
statement number, or the Form or Schedule and the date of its filing.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
(1)
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">Amount Previously Paid:<BR><BR>
        <HR size="1" noshade></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
(2)
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">Form, Schedule or Registration Statement No.:<BR><BR>
        <HR size="1" noshade></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
(3)
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">Filing Party:<BR><BR>
        <HR size="1" noshade></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
(4)
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">Date Filed:<BR><BR>
        <HR size="1" noshade></FONT></TD>
</TR>
</TABLE>
</CENTER>

<P align="center"><FONT size="2"></FONT>


<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="center">
<B><FONT size="4">CISCO SYSTEMS, INC.</FONT></B>

<P align="center">
September&nbsp;28, 2001

<P align="left">
DEAR CISCO SYSTEMS SHAREHOLDER:

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You are cordially invited to attend the Annual Meeting of
Shareholders (the &#147;Annual Meeting&#148;) of Cisco Systems,
Inc., which will be held at Paramount&#146;s Great America in
the Paramount Theater, located at 1&nbsp;Great America Parkway,
Santa Clara, California 95054 on Tuesday, November&nbsp;13,
2001, at 10:00&nbsp;a.m. You will find a map with directions to
the meeting on the outside back cover of the Proxy Statement.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Details of the business to be conducted at the Annual Meeting
are given in the attached Notice of Annual Meeting of
Shareholders and the attached Proxy Statement.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If you do not plan to attend the Annual Meeting, please
complete, sign, date, and return the enclosed proxy promptly in
the accompanying reply envelope. Shareholders who elected to
access the 2001 Proxy Statement and Annual Report over the
Internet and vote their proxy online will not be receiving a
paper proxy card. If you decide to attend the Annual Meeting and
wish to change your proxy vote, you may do so automatically by
voting in person at the Annual Meeting.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We look forward to seeing you at the Annual Meeting.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="38%"></TD>
	<TD width="62%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	/s/ John T. Chambers</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	John T. Chambers</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	<I>President and Chief Executive Officer</I></TD>
</TR>

</TABLE>

<P align="left">
San Jose, California

<P align="center">
<B>YOUR VOTE IS IMPORTANT</B>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
order to assure your representation at the Annual Meeting, you
are requested to complete, sign, and date the enclosed proxy as
promptly as possible and return it in the enclosed envelope (to
which no postage need be affixed if mailed in the United
States). Please reference the &#147;Voting Electronically via
the Internet or by Telephone&#148; section on page&nbsp;1 of the
Proxy Statement for alternative voting methods.

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="center">
<B><FONT size="4">CISCO SYSTEMS, INC.</FONT></B>

<DIV align="center">
<B>170 W. Tasman Drive</B>
</DIV>

<DIV align="center">
<B>San Jose, California 95134-1706</B>
</DIV>

<P align="center">
<B>NOTICE OF ANNUAL MEETING OF SHAREHOLDERS</B>

<DIV align="center">
<B>To Be Held November&nbsp;13, 2001</B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Annual Meeting of Shareholders (the &#147;Annual
Meeting&#148;) of Cisco Systems, Inc. (the &#147;Company&#148;)
will be held at Paramount&#146;s Great America in the Paramount
Theater, located at 1&nbsp;Great America Parkway, Santa Clara,
California 95054, on Tuesday, November&nbsp;13, 2001, at
10:00&nbsp;a.m. for the following purposes:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="97%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	1.&nbsp;To elect eleven members of the Board of Directors of the
	Company to serve until the next Annual Meeting of Shareholders
	and until their successors have been elected and qualified;</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	2.&nbsp;To ratify the appointment of PricewaterhouseCoopers LLP
	as the Company&#146;s independent accountants for the fiscal
	year ending July&nbsp;27, 2002; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	3.&nbsp;To act upon such other matters as may properly come
	before the meeting or any adjournments or postponements thereof.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The foregoing items of business are more fully described in the
Proxy Statement accompanying this Notice. The record date for
determining those shareholders who will be entitled to notice
of, and to vote at, the Annual Meeting and at any adjournments
thereof is September&nbsp;13, 2001. The stock transfer books
will not be closed between the record date and the date of the
Annual Meeting. A list of shareholders entitled to vote at the
Annual Meeting will be available for inspection at the principal
executive offices of the Company.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Whether or not you plan to attend the Annual Meeting, please
complete, sign, date and return the enclosed proxy promptly in
the accompanying reply envelope. If you elected to receive the
2001 Proxy Statement and Annual Report electronically over the
Internet you will not receive a paper proxy card and should vote
online, unless you cancel your enrollment. If your shares are
held in a bank or brokerage account and you did not elect to
receive the materials through the Internet, you may be eligible
to vote your proxy electronically or by telephone. Please refer
to the enclosed proxy card for instructions. You may revoke your
proxy vote at any time prior to the Annual Meeting. If you
decide to attend the Annual Meeting and wish to change your
proxy vote, you may do so automatically by voting in person at
the Annual Meeting.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="38%"></TD>
	<TD width="62%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	BY ORDER OF THE BOARD OF DIRECTORS</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	/s/ Larry R. Carter</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	Larry R. Carter</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	<I>Secretary</I></TD>
</TR>

</TABLE>

<P align="left">
San Jose, California

<DIV align="left">
September&nbsp;28, 2001
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="center">
<B>TABLE OF CONTENTS</B>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="87%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Page</FONT></B></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">VOTING RIGHTS AND SOLICITATION
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Voting
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Voting Electronically via the Internet or by
	Telephone
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Proxies
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Solicitation of Proxies
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">PROPOSAL NO. 1&nbsp;&#151; ELECTION OF DIRECTORS
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">General
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Business Experience of Nominees
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Board Committees and Meetings
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Director Compensation
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Recommendation of the Board of Directors
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">PROPOSAL NO. 2&nbsp;&#151; RATIFICATION OF
	INDEPENDENT ACCOUNTANTS
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">General
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Audit Fees
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Financial Information Systems Design and
	Implementation Fees
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">All Other Fees
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Recommendation of the Board of Directors
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD colspan="6"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">OWNERSHIP OF SECURITIES
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Compliance with SEC Reporting Requirements
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">EXECUTIVE COMPENSATION AND RELATED INFORMATION
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Compensation/ Stock Option Committee Report
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Compensation Committee Interlocks and Insider
	Participation
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Summary of Cash and Certain Other Compensation
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Stock Options
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">14</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Option Exercises and Holdings
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Employment Contracts, Termination of Employment,
	and Change in Control Agreements
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Certain Relationships and Related Transactions
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">AUDIT COMMITTEE REPORT
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">16</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">STOCK PERFORMANCE GRAPH
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">17</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">SHAREHOLDER PROPOSALS FOR 2002 PROXY STATEMENT
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">FORM 10-K
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">OTHER MATTERS
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">19</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">APPENDIX A&nbsp;&#151; CHARTER FOR THE AUDIT
	COMMITTEE OF THE<BR>
	BOARD OF DIRECTORS
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">A-1</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="6" align="left" valign="top">
	<FONT size="2">DIRECTIONS TO PARAMOUNT&#146;S GREAT AMERICA
	&nbsp;See Outside Back Cover
	</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">i

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="center">
<B><FONT size="4">CISCO SYSTEMS, INC.</FONT></B>

<DIV align="center">
<B>170 W. Tasman Drive</B>
</DIV>

<DIV align="center">
<B>San Jose, California 95134-1706</B>
</DIV>

<P align="center">
<B>PROXY STATEMENT</B>

<DIV align="center">
<B>FOR</B>
</DIV>

<DIV align="center">
<B>ANNUAL MEETING OF SHAREHOLDERS</B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These proxy materials are furnished in connection with the
solicitation of proxies by the Board of Directors of Cisco
Systems, Inc., a California corporation (the
&#147;Company&#148;), for the Annual Meeting of Shareholders
(the &#147;Annual Meeting&#148;) to be held at 10:00&nbsp;a.m.
on November&nbsp;13, 2001, at Paramount&#146;s Great America in
the Paramount Theater, located at 1 Great America Parkway, Santa
Clara, California 95054, and at any adjournments or
postponements of the Annual Meeting. These proxy materials were
first mailed on or about September 28, 2001 to all shareholders
entitled to vote at the Annual Meeting.

<P align="center">
<B>PURPOSE OF MEETING</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The specific proposals to be considered and acted upon at the
Annual Meeting are summarized in the accompanying Notice of
Annual Meeting of Shareholders. Each proposal is described in
more detail in this Proxy Statement.

<P align="center">
<B>VOTING RIGHTS AND SOLICITATION</B>

<P align="left">
<B>Voting</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders of the Company&#146;s common stock (&#147;Common
Stock&#148;) are the only securityholders of the Company
entitled to vote at the Annual Meeting. On September&nbsp;13,
2001, the record date for determination of shareholders entitled
to vote at the Annual Meeting, there were 7,334,019,051 shares
of Common Stock outstanding. Each shareholder of record on
September&nbsp;13, 2001 is entitled to one vote for each share
of Common Stock held by such shareholder on that date. Holders
of a majority of the outstanding shares of Common Stock must be
present or represented at the Annual Meeting in order to have a
quorum. Abstentions and broker non-votes will be treated as
shares present for the purpose of determining the presence of a
quorum for the transaction of business at the Annual Meeting. In
the election of directors, the eleven nominees receiving the
highest number of affirmative votes will be elected. Proposal
No.&nbsp;2 requires the approval of the affirmative vote of a
majority of the shares of Common Stock present or represented
and voting at the Annual Meeting, together with the affirmative
vote of a majority of the required quorum. Abstentions and
broker non-votes can have the effect of preventing approval of a
proposal where the number of affirmative votes, though a
majority of the votes cast, does not constitute a majority of
the required quorum. If the persons present or represented by
proxy at the Annual Meeting constitute the holders of less than
a majority of the outstanding shares of Common Stock as of the
record date, the Annual Meeting may be adjourned to a subsequent
date for the purpose of obtaining a quorum. All votes will be
tabulated by the inspector of election appointed for the Annual
Meeting, who will separately tabulate affirmative and negative
votes, abstentions and broker non-votes.

<P align="left">
<B>Voting Electronically via the Internet or by Telephone</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Shareholders whose shares are registered in their own names may
vote either via the Internet or by telephone. Specific
instructions to be followed by any registered shareholder
interested in voting via Internet or by telephone are set forth
on the enclosed proxy card. The Internet and telephone voting
procedures are designed to authenticate the shareholder&#146;s
identity and to allow shareholders to vote their shares and
confirm that their voting instructions have been properly
recorded.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If your shares are registered in the name of a bank or brokerage
firm and you have not elected to receive your Proxy Statement
over the Internet, you may be eligible to vote your shares
electronically over the

<P align="center">

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV align="left">
Internet or by telephone. A large number of banks and brokerage
firms are participating in the ADP Investor Communication
Services online program. This program provides eligible
shareholders who receive a paper copy of this Proxy Statement
the opportunity to vote via the Internet or by telephone. If
your bank or brokerage firm is participating in ADP&#146;s
program, your proxy card will provide instructions. If your
proxy card does not reference Internet or telephone information,
please complete and return the proxy card in the self-addressed,
postage paid envelope provided. Shareholders who elected to
receive the 2001 Proxy Statement and Annual Report over the
Internet will be receiving an e-mail on or about September 28,
2001 with information on how to access shareholder information
and instructions for voting.
</DIV>

<P align="left">
<B>Proxies</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Whether or not you are able to attend the Annual Meeting, you
are urged to submit your proxy, which is solicited by the
Company&#146;s Board of Directors (the &#147;Board of
Directors&#148; or the &#147;Board&#148;) and which when
properly completed will be voted as you direct. In the event no
directions are specified, such proxies will be voted FOR each of
the nominees of the Board of Directors (Proposal No. 1), FOR the
ratification of the appointment of PricewaterhouseCoopers LLP as
the Company&#146;s independent accountants for the
Company&#146;s fiscal year ending July 27, 2002 (Proposal
No.&nbsp;2), and in the discretion of the proxy holders as to
any other matters that may properly come before the Annual
Meeting. You may revoke or change your proxy vote at any time
before the Annual Meeting by sending a written notice of
revocation or submitting another proxy with a later date to the
Secretary of the Company at the Company&#146;s principal
executive offices before the beginning of the Annual Meeting.
You may also revoke your proxy vote by attending the Annual
Meeting and voting in person.

<P align="left">
<B>Solicitation of Proxies</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company will bear the entire cost of this solicitation of
proxies, including the preparation, assembly, printing, and
mailing of this Proxy Statement, the proxy, and any additional
solicitation material furnished to shareholders by the Company.
Copies of solicitation material will be furnished to brokerage
houses, fiduciaries, and custodians holding shares in their
names that are beneficially owned by others so that they may
forward the solicitation material to such beneficial owners. In
addition, the Company has retained Georgeson Shareholder
Communications Inc. to act as a proxy solicitor in conjunction
with the Annual Meeting. Under the terms of an agreement dated
September&nbsp;10, 2001, the Company has agreed to pay $10,000,
plus reasonable out of pocket expenses, to Georgeson Shareholder
Communications Inc. for proxy solicitation services. The
original solicitation of proxies by mail may be supplemented by
solicitation by telephone, telegram and other means by
directors, officers, and/or employees of the Company. No
additional compensation will be paid to these individuals for
any such services. Except as described above, the Company does
not presently intend to solicit proxies otherwise than by mail
and via the Internet.

<P align="center">2

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="center">
<B>PROPOSAL NO. 1</B>

<P align="center">
<B>ELECTION OF DIRECTORS</B>

<P align="left">
<B>General</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The names of persons who are nominees for director and their
positions and offices with the Company are set forth in the
table below. The proxy holders intend to vote all proxies
received by them for the nominees listed below unless otherwise
instructed. In the event any nominee is unable or declines to
serve as a director at the time of the Annual Meeting, the
proxies will be voted for any nominee who may be designated by
the Board of Directors to fill the vacancy. As of the date of
this Proxy Statement, the Board of Directors is not aware of any
nominee who is unable or will decline to serve as a director.
The eleven nominees receiving the highest number of affirmative
votes of the shares entitled to vote at the Annual Meeting will
be elected directors of the Company to serve until the next
Annual Meeting of Shareholders and until their successors have
been elected and qualified. Shareholders may not cumulate votes
in the election of directors.

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="48%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="49%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap><B><FONT size="2">Nominees</FONT></B></TD>
	<TD></TD>
	<TD align="center" nowrap><B><FONT size="2">Positions and Offices Held With the Company</FONT></B></TD>
</TR>

<TR>
	<TD align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Carol A. Bartz
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Director
	</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Larry R. Carter
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Senior Vice President, Finance and
	Administration, Chief Financial Officer, Secretary,
	and&nbsp;Director
	</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">John T. Chambers
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">President, Chief Executive Officer, and Director
	</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Carleton S. Fiorina
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Director
	</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Dr. James F. Gibbons
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Director
	</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">James C. Morgan
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Director
	</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">John P. Morgridge
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Chairman of the Board
	</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Arun Sarin
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Director
	</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Donald T. Valentine
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Vice Chairman of the Board
	</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Steven M. West
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Director
	</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Jerry Yang
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Director
	</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<B>Business Experience of Nominees</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Ms.&nbsp;Bartz, 53, has been a member of the Board of Directors
since November 1996. From April&nbsp;1992 to present she has
served as Chairman of the Board and Chief Executive Officer of
Autodesk, Inc. From April 1992 to September 1996 she was
Chairman, Chief Executive Officer and President of Autodesk,
Inc. Prior to that, she was with Sun Microsystems from August
1983 to April 1992 most recently as Vice President of Worldwide
Field Operations. Ms.&nbsp;Bartz also currently serves on the
Boards of Directors of BEA&nbsp;Systems, Inc., Network
Appliance, Inc. and VA&nbsp;Linux Systems, Inc.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Carter, 58, was elected to the Board of Directors in
July 2000. He joined the Company in January&nbsp;1995 as Vice
President, Finance and Administration, Chief Financial Officer
and Secretary. In July 1997 he became the Senior Vice President,
Finance and Administration, Chief Financial Officer and
Secretary. Prior to his services at the Company he was with
Advanced Micro Devices, Inc. as the Vice President and Corporate
Controller. Mr.&nbsp;Carter currently serves on the Board of
Directors of eSpeed, Inc., Network Appliance, Inc., QLogic
Corporation and Transmeta Corporation.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Chambers, 52, has been a member of the Board of
Directors since November 1993. He joined the Company as Senior
Vice President in January 1991 and became Executive Vice
President in June 1994. Mr.&nbsp;Chambers became President and
Chief Executive Officer of the Company as of January&nbsp;31,
1995. Prior to his services at the Company, he was with Wang
Laboratories for eight years, most recently as Senior Vice
President of U.S. Operations. Mr.&nbsp;Chambers currently serves
on the Board of Directors of Wal-Mart Stores, Inc.

<P align="center">3

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Ms.&nbsp;Fiorina, 46, has been a member of the Board of
Directors since January 2001. From July 1999 to present she has
been the President and Chief Executive Officer of
Hewlett-Packard Company and a member of its Board of Directors.
Since September 2000, she has also served as Chairman of the
Board of Directors of Hewlett-Packard Company. From January 1996
to July 1999, she was with Lucent Technologies, Inc., most
recently as Group President of the Global Service Provider
Business.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Dr.&nbsp;Gibbons, 70, has been a member of the Board of
Directors since May 1992. He is a Reid Weaver Dennis Professor
of Electrical Engineering at Stanford University. He was Dean of
the Stanford University School of Engineering from 1984 to 1996.
Dr.&nbsp;Gibbons also currently serves on the Boards of
Directors of Lockheed Martin Corporation and El&nbsp;Paso
Natural Gas Company.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Morgan, 63, has been a member of the Board of Directors
since February 1998. He has been Chief Executive Officer of
Applied Materials, Inc. since 1977 and also Chairman of the
Board since 1987. He was President of Applied Materials, Inc.
from 1976 to 1987. He was previously a senior partner with
West&nbsp;Ven Management, a private venture capital partnership
affiliated with Bank of America Corporation.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Morgridge, 68, joined the Company as President and
Chief Executive Officer and was elected to the Board of
Directors in October&nbsp;1988. Mr.&nbsp;Morgridge became
Chairman of the Board on January&nbsp;31, 1995, upon his
retirement from the positions of President and Chief Executive
Officer of the Company. From 1986 to 1988 he was President and
Chief Operating Officer at GRiD Systems, a manufacturer of
laptop computer systems.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Sarin, 46, has been a member of the Board of Directors
since September 1998. From July 2001 to present he has been the
Chief Executive Officer of Accel-KKR Telecom. He was the Chief
Executive Officer of InfoSpace, Inc., and a member of its Board
of Directors from April 2000 to January 2001. He was the Chief
Executive Officer of the USA/Asia Pacific Region for Vodafone
AirTouch, Plc from July 1999 to April 2000. From February 1997
to July 1999 he was the President and Chief Operating Officer of
AirTouch Communications, Inc., a wireless telecommunications
services company. He served as President and Chief Executive
Officer of AirTouch International from April 1994 to February
1997. Mr.&nbsp;Sarin joined AirTouch Communications, Inc. in
1984 and held a variety of positions, including Vice President
and General Manager, Vice President, Chief Financial Officer and
Controller, and Vice President of Corporate Strategy.
Mr.&nbsp;Sarin currently serves on the Boards of Directors of
GAP,&nbsp;Inc., Vodafone&nbsp;Plc and Charles Schwab Corporation.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Valentine, 69, has been a member of the Board of
Directors of the Company since December 1987 and was elected
Chairman of the Board of Directors in December 1988. He became
Vice Chairman of the Board on January&nbsp;31, 1995. He has been
a general partner of Sequoia Capital since 1974.
Mr.&nbsp;Valentine currently serves as Chairman of the Board of
Directors of Network Appliance, Inc.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;West, 46, has been a member of the Board of Directors
since April 1996. He was the President and Chief Executive
Officer of Entera, Inc. from September 1999 to January 2001.
From January 1999 to August 1999 he was the President of the
Services Business Unit at Electronic Data Systems Corporation.
He was the President and Chief Executive Officer of Hitachi Data
Systems, a joint venture computer hardware services company
owned by Hitachi, Ltd. and Electronic Data Systems Corporation,
from June 1996 to January 1999. Prior to that, Mr.&nbsp;West was
at Electronic Data Systems Corporation from November 1984 to
June of 1996, most recently as President of Electronic Data
Systems Corporation Infotainment Business Unit.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Yang, 32, has been a member of the Board of Directors
since July 2000. He is a founder of Yahoo!&nbsp;Inc., and since
March 1995 has been an executive of Yahoo!&nbsp;Inc. and has
served as a member of its Board of Directors.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Neither Ms.&nbsp;Mary&nbsp;Cirillo nor
Mr.&nbsp;Edward&nbsp;Kozel, each of whom is currently a member
of the Board of Directors, is standing for re-election at the
Annual Meeting.

<P align="left">
<B>Board Committees and Meetings</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the Company&#146;s fiscal year that ended on
July&nbsp;28, 2001, the Board of Directors held six meetings.
During this period, all of the directors attended or
participated in more than 75% of the aggregate of (i)&nbsp;the

<P align="center">4

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<P><HR noshade><P>

<DIV align="left">
total number of meetings of the Board of Directors and
(ii)&nbsp;the total number of meetings held by all Committees of
the Board on which each such director served except Edward Kozel
who attended 62% of such meetings.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company has eight standing Committees: the Acquisition
Committee; the Special Acquisition Committee; the Audit
Committee; the Compensation/ Stock Option Committee; the
Executive Committee; the Investment/ Finance Committee; the
Nomination Committee; and the Special Stock Option Committee.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Acquisition Committee reviews acquisition strategies and
candidates with the Company&#146;s management, approves
acquisitions valued below a specified dollar threshold and also
makes recommendations to the Board of Directors. This Committee
met on two separate occasions during the last fiscal year. This
Committee currently consists of Messrs.&nbsp;Valentine,
Chambers, Morgridge and Sarin and Ms.&nbsp;Bartz.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Special Acquisition Committee reviews acquisition strategies
and candidates with the Company&#146;s management, approves
acquisitions valued below a specified dollar threshold and also
makes recommendations to the Board of Directors. This committee
held four meetings during the last fiscal year. The Committee
currently consists of Messrs.&nbsp;Chambers and Kozel and
Ms.&nbsp;Bartz.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee is responsible for reviewing the accounting
principles, policies and practices followed by the Company in
accounting for and reporting its financial results of operations
and for selecting and meeting with the Company&#146;s
independent accountants. This Committee meets from time to time
with members of the Company&#146;s internal audit staff and
also, among other things, reviews the financial, investment and
risk management policies followed by the Company in conducting
its business activities; the Company&#146;s annual financial
statements; the Company&#146;s internal financial controls; and
the performance of the Company&#146;s independent accountants.
The Audit Committee operates under a written Audit Committee
Charter adopted by the Board, a copy of which is attached hereto
as Appendix&nbsp;A. This Committee held seven meetings during
the last fiscal year. This Committee currently consists of
Ms.&nbsp;Cirillo and Messrs.&nbsp;Sarin and West. The Board has
determined that each of the members of the Audit Committee is an
&#147;independent director&#148; as defined in Rule&nbsp;4200 of
the listing standards of the National Association of Securities
Dealers, Inc.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Compensation/ Stock Option Committee is responsible for
reviewing the compensation arrangements in effect for the
Company&#146;s executive officers and for administering all of
the Company&#146;s employee benefit plans, including the 1996
Stock Incentive Plan. This Committee acted by unanimous written
consent on fourteen separate occasions and met four times during
the last fiscal year. This Committee currently consists of
Messrs.&nbsp;Gibbons and Morgan and Ms.&nbsp;Bartz.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Executive Committee is authorized to exercise all power and
authority of the Board in the oversight of the management of the
business and affairs of the Company, otherwise than in
connection with matters specified by law to be reserved for the
full Board. This Committee held no meetings during the last
fiscal year. This Committee currently consists of
Messrs.&nbsp;Morgridge, Chambers and Valentine.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Investment/ Finance Committee reviews and approves the
Company&#146;s investment policy, real estate acquisitions and
leasing, and the Company&#146;s currency, interest rate and
equity risk management policies. This Committee also reviews the
Company&#146;s minority investments, fixed income assets and its
insurance management policies and programs. This Committee held
three meetings during the last fiscal year. This Committee
currently consists of Messrs.&nbsp;Morgridge, Carter, Kozel and
Valentine and Ms.&nbsp;Cirillo.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Nomination Committee is responsible for nominating new
members to be considered for the Board of Directors. This
Committee held no meetings during the last fiscal year. This
Committee currently consists of Messrs.&nbsp;Chambers and
Gibbons and Ms.&nbsp;Bartz.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Special Stock Option Committee has concurrent authorization
with the Compensation/ Stock Option Committee to make option
grants under the 1996 Stock Incentive Plan to eligible
individuals other than executive officers of the Company. This
Committee held no meetings during the last fiscal year with
respect to the approval of such option grants. This Committee
currently consists of Messrs.&nbsp;Chambers and Morgridge and
Ms.&nbsp;Bartz.

<P align="center">5

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<P><HR noshade><P>

<P align="left">
<B>Director Compensation</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Non-employee directors were each paid a $32,000 annual retainer
fee for serving on the Board during the 2001 fiscal year, except
that the fee paid to Mr.&nbsp;Yang was increased to $40,000 to
compensate him for his period of Board service in July 2000
prior to the start of the Company&#146;s 2001 fiscal year and
the fee paid to Ms.&nbsp;Fiorina was pro-rated to $26,667
because her period of Board service did not commence until
January 2001. During such fiscal year, non-employee directors
were also eligible to participate in the Discretionary Option
Grant Program in effect under the 1996 Stock Incentive Plan and
to receive periodic option grants under the Automatic Option
Grant Program in effect under the 1996 Stock Incentive Plan.
Directors who are also employees of the Company are eligible to
receive options under the Company&#146;s 1996 Stock Incentive
Plan and to participate in the Company&#146;s 1989 Employee
Stock Purchase Plan, the Company&#146;s 401(k)&nbsp;Plan, and
the Company&#146;s Management Incentive Plan.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At the Annual Meeting of Shareholders held on November&nbsp;14,
2000, each of the following non-employee directors re-elected to
the Board received an option grant under the Automatic Option
Grant Program for 15,000 shares of Common Stock with an exercise
price of $53.125 per share: Mses.&nbsp;Bartz and Cirillo and
Messrs.&nbsp;Gibbons, Morgan, Sarin, Valentine and West.
Ms.&nbsp;Fiorina received an initial automatic option grant
under the Automatic Option Grant Program for 30,000 shares on
January&nbsp;9, 2001 when she was first elected to the Board,
with an exercise price of $37.125 per share. The exercise price
in effect for each option is equal to the fair market value per
share of Common Stock on the grant date. Each option has a
maximum term of nine years measured from the grant date, subject
to earlier termination following the optionee&#146;s cessation
of Board service. The shares subject to each 15,000-share grant
will vest in two equal annual installments upon the
optionee&#146;s completion of each year of Board service over
the two year period beginning on the grant date. The shares
subject to the 30,000-share grant made to Ms.&nbsp;Fiorina will
vest in four successive equal annual installments upon the
completion of each year of Board service over the four year
period beginning on the grant date. Each option is immediately
exercisable for all of the shares underlying the option;
however, any shares purchased under the option will be subject
to the Company&#146;s right to repurchase any then unvested
shares, at the option exercise price paid per share, upon the
optionee&#146;s cessation of Board service. Lastly, the vesting
of the shares underlying the options immediately accelerate in
full upon certain changes in control or ownership of the Company
or upon the optionee&#146;s death or disability while a Board
member.

<P align="left">
<B>Recommendation of the Board of Directors</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board of Directors recommends that the shareholders vote
<B>FOR </B>the election of each of the nominees listed herein.

<P align="center">
<B>PROPOSAL NO. 2</B>

<P align="center">
<B>RATIFICATION OF INDEPENDENT ACCOUNTANTS</B>

<P align="left">
<B>General</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company is asking the shareholders to ratify the Board of
Director&#146;s appointment of PricewaterhouseCoopers LLP as the
Company&#146;s independent accountants for the fiscal year
ending July&nbsp;27, 2002. The affirmative vote of a majority of
the shares of Common Stock present or represented and voting at
the Annual Meeting, together with the affirmative vote of a
majority of the required quorum, is required to ratify such
appointment.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the event the shareholders fail to ratify the appointment,
the Board of Directors will reconsider its selection. Even if
the appointment is ratified, the Board of Directors, in its
discretion, may direct the appointment of a different
independent accounting firm at any time during the year if the
Board of Directors determines that such a change would be in the
Company&#146;s and its shareholders&#146; best interests.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PricewaterhouseCoopers LLP has audited the Company&#146;s
financial statements annually since the Company&#146;s 1988
fiscal year. Representatives of PricewaterhouseCoopers LLP are
expected to be present at

<P align="center">6

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<P><HR noshade><P>

<DIV align="left">
the Annual Meeting and will have the opportunity to make a
statement if they desire to do so. It is also expected that they
will be available to respond to appropriate questions.
</DIV>

<P align="left">
<B>Audit Fees</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PricewaterhouseCoopers LLP has billed the Company $1,830,000, in
the aggregate, for professional services rendered by
PricewaterhouseCoopers LLP for the audit of the Company&#146;s
annual financial statements for the Company&#146;s 2001 fiscal
year and the reviews of the interim financial statements
included in the Company&#146;s Quarterly Reports on
Form&nbsp;10-Q for the Company&#146;s 2001 fiscal year.

<P align="left">
<B>Financial Information Systems Design and Implementation
Fees</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PricewaterhouseCoopers LLP has billed the Company $3,670,000, in
the aggregate, for professional services related to financial
information systems design and implementation as described in
Paragraph (c)(4)(ii) of Rule&nbsp;2-01 of Regulation&nbsp;S-X.

<P align="left">
<B>All Other Fees</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PricewaterhouseCoopers LLP has billed the Company $13,126,000,
in the aggregate, for professional services rendered by
PricewaterhouseCoopers LLP for all services other than those
services covered in the sections captioned &#147;Audit
Fees&#148; and &#147;Financial Information Systems Design and
Implementation Fees&#148; for the Company&#146;s 2001 fiscal
year. These other services include (i)&nbsp;tax planning and
assistance with the preparation of returns, (ii)&nbsp;services
rendered in connection with acquisitions made by the Company,
(iii)&nbsp;assistance with regulatory filings, and
(iv)&nbsp;consultations on the effects of various accounting
issues and changes in professional standards.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In making its recommendation to ratify the appointment of
PricewaterhouseCoopers LLP as the Company&#146;s independent
accountants for the fiscal year ending July&nbsp;27, 2002, the
Audit Committee has considered whether the non-audit services
provided by PricewaterhouseCoopers LLP are compatible with
maintaining the independence of PricewaterhouseCoopers LLP.

<P align="left">
<B>Recommendation of the Board of Directors</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board of Directors recommends that the shareholders vote
<B>FOR </B>the ratification of the appointment of
PricewaterhouseCoopers LLP to serve as the Company&#146;s
independent accountants for the fiscal year ending July&nbsp;27,
2002.

<P align="center">7

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="center">
<B>OWNERSHIP OF SECURITIES</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth certain information known to the
Company with respect to beneficial ownership of Common Stock as
of July&nbsp;28, 2001 for (i)&nbsp;all persons who are
beneficial owners of five percent or more of the outstanding
shares of Common Stock as of July&nbsp;28, 2001, (ii)&nbsp;each
director and nominee for director of the Company, (iii)&nbsp;the
Company&#146;s Chief Executive Officer and the other executive
officers named in the Summary Compensation Table below, and
(iv)&nbsp;all executive officers and directors as a group as of
July&nbsp;28, 2001:

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="71%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Number</FONT></B></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">of Shares</FONT></B></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Beneficially</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Percent</FONT></B></TD>
</TR>

<TR>
	<TD align="center" nowrap><B><FONT size="2">Name</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Owned(1)</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Owned(2)</FONT></B></TD>
</TR>

<TR>
	<TD align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Carol A. Bartz(3)
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">297,928</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Larry R. Carter(4)
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,438,081</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">John T. Chambers(5)
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">21,385,667</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Mary A. Cirillo(6)
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">220,717</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Carleton Fiorina
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">30,450</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">James F. Gibbons
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">135,920</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Richard J. Justice(7)
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,615,751</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Edward R. Kozel(8)
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,148,889</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">James C. Morgan(9)
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">214,300</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">John P. Morgridge(10)
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">84,127,513</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1.1</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">James Richardson
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,629,551</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Arun Sarin
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">128,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Donald T. Valentine(11)
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,014,983</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Michelangelo Volpi(12)
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,801,768</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Steven M. West(13)
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">140,400</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Jerry Yang(14)
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">69,721</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">All executive officers and directors as a group
	(19 Persons)
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">133,230,159</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1.8</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="18%" align="left" noshade>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="1%"></TD>
	<TD width="4%"></TD>
	<TD width="95%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&nbsp; *</TD>
	<TD align="left">
	Less than one percent.</TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="5%"></TD>
	<TD width="95%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp; (1)&nbsp;</TD>
	<TD align="left">
	Except as indicated in the footnotes to this table and pursuant
	to applicable community property laws, the persons named in the
	table have sole voting and investment power with respect to all
	shares of Common Stock. The number of shares beneficially owned
	by each person or group as of July&nbsp;28, 2001 includes shares
	of Common Stock that such person or group had the right to
	acquire on or within 60&nbsp;days after July&nbsp;28, 2001,
	including, but not limited to, upon the exercise of options.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp; (2)&nbsp;</TD>
	<TD align="left">
	For each individual and group included in the table, percentage
	ownership is calculated by dividing the number of shares
	beneficially owned by such person or group as described above by
	the sum of the 7,324,134,100 shares of Common Stock outstanding
	on July&nbsp;28, 2001 and the number of shares of Common Stock
	that such person or group had the right to acquire on or within
	60&nbsp;days of July&nbsp;28, 2001, including, but not limited
	to, upon the exercise of options.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp; (3)&nbsp;</TD>
	<TD align="left">
	Includes 2,928 shares held by Carol Bartz&#146;s spouse, Bill
	Marr.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp; (4)&nbsp;</TD>
	<TD align="left">
	Includes 27,596 shares held by the Carter Revocable Trust dated
	October&nbsp;18, 1994.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp; (5)&nbsp;</TD>
	<TD align="left">
	Includes 35,928 shares held by the Sequoia Capital&nbsp;VII
	Partnership, in which John&nbsp;Chambers holds an economic
	interest. Mr.&nbsp; Chambers disclaims beneficial ownership of
	shares of Common Stock held by the Sequoia Capital&nbsp;VII
	Partnership, except to the extent of his pecuniary interest
	therein.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp; (6)&nbsp;</TD>
	<TD align="left">
	Includes 13,500 shares held by Mary Cirillo&#146;s spouse, Jay
	Goldberg.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp; (7)&nbsp;</TD>
	<TD align="left">
	Includes 21,836 shares held by the 1990 Justice Family Trust.</TD>
</TR>

</TABLE>

<P align="center">8

<!-- PAGEBREAK -->
<P><HR noshade><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="5%"></TD>
	<TD width="95%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp; (8)&nbsp;</TD>
	<TD align="left">
	Includes 12,500 shares held by Edward&nbsp;R. and Sara&nbsp;T.
	Kozel, Trustees for the Kozel Revocable Trust dated
	December&nbsp;27, 1994.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp; (9)&nbsp;</TD>
	<TD align="left">
	Includes 9,300 shares held by James Morgan&#146;s spouse,
	Rebecca&nbsp;Q. Morgan.</TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="5%"></TD>
	<TD width="95%"></TD>
</TR>

<TR valign="top">
	<TD>(10)&nbsp;</TD>
	<TD align="left">
	Includes 78,020,191 shares held by John&nbsp;P. Morgridge and
	Tashia&nbsp;F. Morgridge as Trustees of the Morgridge Family
	Trust (UTA DTD 6/30/88), 96,238 shares held by John
	Morgridge&#146;s spouse, Tashia&nbsp;F. Morgridge, and 4,652,222
	shares held in the Morgridge Family Foundation.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(11)&nbsp;</TD>
	<TD align="left">
	Includes 1,963,214 shares held by the Donald&nbsp;T. Valentine
	Family Trust Under Agreement dated April&nbsp;29, 1967. Also
	includes 1,426,769 shares held in total by the following
	partnerships in which Mr.&nbsp;Valentine holds a partnership or
	other economic interest: 506,782 shares held by Sequioa
	Capital&nbsp;IX, 93,541 shares held by Sequoia Capital&nbsp;IX
	Principles Fund, 78,008 shares held by Sequoia Capital
	Entrepreneurs Fund, 179,006 shares held by Sequoia Capital Seed
	Fund, 19,858 shares held by Sequoia Technology
	Partners&nbsp;VII, 454,232 shares held by Sequoia
	Capital&nbsp;VII, 7,924 shares held by Sequoia International
	Partners, 66,214 shares held by Sequoia Capital&nbsp;VIII, 4,384
	shares held by Sequoia International Partners&nbsp;VIII&nbsp;Q,
	840&nbsp; shares held by Sequoia International Technology
	Partners&nbsp;VIII, 5,328 shares held by Sequoia 1997, 9,192
	shares held by SQP 1997 and 1,460 shares held by CMS Partners
	(collectively the &#147;Sequoia Entities&#148;).
	Mr.&nbsp;Valentine disclaims beneficial ownership of shares of
	Common Stock held by the Sequoia Entities, except to the extent
	of his pecuniary interest therein.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(12)&nbsp;</TD>
	<TD align="left">
	Includes 74&nbsp;shares held by Michelangelo Volpi&#146;s son,
	Marco Volpi.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(13)&nbsp;</TD>
	<TD align="left">
	Includes 400 shares held by Steven West&#146;s spouse, Donna
	Karam.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(14)&nbsp;</TD>
	<TD align="left">
	Includes 2,388 shares held in the Red Husley Foundation, 34,145
	shares held in the Jerry Yang Charitable Trust and 3,188 shares
	held in the Jerry Yang Revocable Trust.</TD>
</TR>

</TABLE>

<P align="left">
<B>Compliance with SEC Reporting Requirements</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under Section&nbsp;16(a) of the Securities Exchange Act of 1934,
as amended (the &#147;Exchange Act&#148;), the Company&#146;s
directors, executive officers and any persons holding more than
ten percent of the outstanding Common Stock are required to
report their initial ownership of Common Stock and any
subsequent changes in their ownership to the Securities and
Exchange Commission (&#147;SEC&#148;). Specific due dates have
been established by the SEC, and the Company is required to
disclose in this Proxy Statement any failure to file by those
dates. Based solely of its review of (i)&nbsp;copies of
Section&nbsp;16(a) reports that the Company received from such
persons for their transactions during the Company&#146;s 2001
fiscal year and (ii)&nbsp;written representations received from
one or more of such persons that no annual Form&nbsp;5 reports
were required to be filed for them for the Company&#146;s 2001
fiscal year, the Company believes that all reports required to
be filed under Section&nbsp;16(a) have been filed on a timely
basis by the foregoing persons for the Company&#146;s 2001
fiscal year, except as follows. Ms.&nbsp;Cirillo, a member of
the Board of Directors, filed a late Form&nbsp;5 report for the
Company&#146;s 2000 fiscal year and failed to timely file
Form&nbsp;4 reports with respect to (i)&nbsp;seven purchase
transactions that occurred over a twenty-two month period
beginning in December&nbsp;1998 and covered a total of 1,920
shares of Common Stock and (ii)&nbsp;five sale transactions that
occurred over a twelve month period beginning in
January&nbsp;2000 and covered a total of 205&nbsp;shares of
Common Stock. These transactions were subsequently reported by
Ms.&nbsp;Cirillo in May 2001 as follows: a late Form&nbsp;4 for
October&nbsp;2000 in which one of the late purchase transactions
was reported; an amendment to a previously filed Form&nbsp;4 for
December&nbsp;2000 in which one of the late sale transactions
was reported; and an amendment to the Form&nbsp;5 filed for the
Company&#146;s 2000 fiscal year in which the remaining six late
purchase transactions and four late sale transactions were
reported. Mr.&nbsp;Morgan, a member of the Board of Directors,
filed an amended Form&nbsp;3 in September 2001 in which he
reported 300 shares of Common Stock owned by his spouse which he
failed to report on his original Form&nbsp;3.
Mr.&nbsp;Morgridge, a member of the Board of Directors, filed a
late Form&nbsp;4 on March&nbsp;8, 2001 with respect to
346&nbsp;shares of Common Stock distributed to him in October
2000 from a partnership in which he held a limited partnership
interest. In addition, Mr.&nbsp;Richardson, one of the
Company&#146;s Senior Vice Presidents, filed an amended
Form&nbsp;3 in September 2001 in which he reported an additional
445 shares of Common Stock

<P align="center">9

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV align="left">
purchased under the Company&#146;s Employee Stock Purchase Plan
which he failed to include in his Common Stock holdings reported
on his original Form&nbsp;3.
</DIV>

<P align="center">
<B>EXECUTIVE COMPENSATION AND RELATED INFORMATION</B>

<P align="left">
<B>Compensation/ Stock Option Committee Report</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Compensation/ Stock Option Committee (the
&#147;Committee&#148;) of the Board of Directors sets the
compensation of the Chief Executive Officer, reviews the design,
administration and effectiveness of compensation programs for
other key executives, and approves stock option grants for all
executive officers. The Committee, serving under a charter
adopted by the Board of Directors, is composed entirely of
outside directors who have never served as officers of the
Company.

<P align="left">
Compensation Philosophy and Objectives

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company operates in the extremely competitive and rapidly
changing high technology industry. The Committee believes that
the compensation programs for the executive officers should be
designed to attract, motivate and retain talented executives
responsible for the success of the Company and should be
determined within a framework and based on the achievement of
designated financial targets, individual contribution, customer
satisfaction and financial performance relative to that of the
Company&#146;s competitors. Within this overall philosophy, the
Committee&#146;s objectives are to:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="1%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	Offer a total compensation program that takes into consideration
	the compensation practices of a group of specifically identified
	peer companies (the &#147;Peer Companies&#148;) and other
	selected companies with which the Company competes for executive
	talent.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	Provide annual variable incentive awards that take into account
	the Company&#146;s overall financial performance in terms of
	designated corporate objectives and the relative performance of
	the Peer Companies as well as individual contributions and a
	measure of customer satisfaction.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	Align the financial interests of executive officers with those
	of shareholders by providing significant equity-based, long-term
	incentives.</TD>
</TR>

</TABLE>

<P align="left">
Compensation Components and Process

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The three major components of the Company&#146;s executive
officer compensation are: (i)&nbsp;base salary,
(ii)&nbsp;variable incentive awards, and (iii)&nbsp;long-term,
equity-based incentive awards.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Committee determines the compensation levels for the
executive officers with the assistance of the Company&#146;s
Human Resources Department, which works with an independent
consulting firm that furnishes the Committee with executive
compensation data drawn from a nationally recognized survey of
similarly sized technology companies which have been identified
as the Peer Companies. A significant number of the Peer
Companies are listed in the Hambrecht &#38; Quist Technology
Index, which is included in the Stock Performance Graph for this
Proxy Statement. Certain companies not included in this Index
were considered Peer Companies because the Company competes for
executive talent with those companies. However, some
organizations in the Hambrecht &#38; Quist Technology Index were
excluded from the Peer Company list because they were not
considered competitors for executive talent or because
compensation information was not available.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The positions of the Company&#146;s CEO and executive officers
were compared with those of their counterparts at the Peer
Companies, and the market compensation levels for comparable
positions were examined to determine base salary, target
incentives and total cash compensation. In addition, the
practices of the Peer Companies concerning stock option grants
were reviewed and compared.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Base Salary. </I>The base salary for each executive officer
is determined at levels considered appropriate for comparable
positions at the Peer Companies. The Company&#146;s policy is to
target base salary levels between the 25th and 50th percentile
of compensation practices at Peer Companies.

<P align="center">10

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Variable Incentive Awards. </I>To reinforce the attainment of
Company goals, the Committee believes that a substantial portion
of the annual compensation of each executive officer should be
in the form of variable incentive pay. The annual incentive pool
for executive officers is determined on the basis of the
Company&#146;s achievement of the financial performance targets
established at the beginning of the fiscal year and also
includes a range for the executive&#146;s contribution, a
measure of customer satisfaction and a strategic component tied
to the Company&#146;s performance relative to a select group of
competitors. The incentive plan sets a threshold level of
Company performance based on both revenue and profit before
interest and taxes that must be attained before any incentives
are awarded. Once the fiscal year&#146;s threshold is reached,
specific formulas are in place to calculate the actual incentive
payment for each officer. A target is set for each executive
officer based on targets for comparable positions at the Peer
Companies and is stated in terms of an escalating percentage of
the officer&#146;s base salary for the year. In fiscal year
2001, the Company failed to achieve its corporate financial
performance targets. As a result, despite exceeding both the
strategic target tied to revenue performance relative to the
selected competitor group and the corporate target for customer
satisfaction, and in accordance with the variable incentive
award formula, no variable incentive awards were paid to the
executive officers.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Long-Term, Equity-Based Incentive Awards. </I>The goal of the
Company&#146;s long-term, equity-based incentive awards is to
align the interests of executive officers with shareholders and
to provide each executive officer with a significant incentive
to manage the Company from the perspective of an owner with an
equity stake in the business. The Committee determines the size
of the long-term, equity-based incentives according to each
executive&#146;s position within the Company and sets a level it
considers appropriate to create a meaningful opportunity for
stock ownership. In addition, the Committee takes into account
an individual&#146;s recent performance, his or her potential
for future responsibility and promotion, comparable awards made
to individuals in similar positions with the Peer Companies, and
the number of unvested options held by each individual at the
time of the new grant. The relative weight given to each of
these factors varies among individuals at the Committee&#146;s
discretion.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During fiscal year 2001, the Committee made option grants to
Messrs.&nbsp;Carter, Chambers, Justice, Richardson and Volpi
under the Company&#146;s 1996 Stock Incentive Plan. Each grant
allows the officer to acquire shares of the Company&#146;s
Common Stock at a fixed price per share (the market price on the
grant date) over a specified period of time. Options granted to
this group of individuals in November 2000 and in May 2001 vest
in periodic installments over a five year period, contingent
upon the executive officer&#146;s continued employment with the
Company. Accordingly, the option grants will provide a return
only if the officer remains with the Company and only if the
market price appreciates over the option term.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>CEO Compensation. </I>The annual base salary for
Mr.&nbsp;Chambers was established by the Committee on
July&nbsp;27, 2000, for the period July&nbsp;30, 2000 to
July&nbsp;28, 2001. The Committee&#146;s decision was based on
both Mr.&nbsp;Chambers&#146; personal performance of his duties
and the salary levels paid to chief executive officers of the
Peer Companies, but set below the 25th percentile of the
surveyed data in order to have a substantial portion of his
total compensation, in the form of variable incentive awards and
stock option grants, tied to Company performance and stock price
appreciation. On April&nbsp;1, 2001, Mr. Chambers requested that
his base salary be lowered to a rate of $1.00 annually. On
May&nbsp;11, 2001, the Committee agreed to honor this request
until such a time as the Committee deems it appropriate to
return Mr.&nbsp;Chambers&#146; base salary to a market
competitive level. The Committee continues to assess the market
data for chief executive officers&#146; salary levels at the
Peer Companies to ensure that, when reinstated,
Mr.&nbsp;Chambers&#146; compensation is consistent with
Cisco&#146;s stated compensation objectives relative to base
salary.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Chambers&#146; 2001 fiscal year incentive compensation
was based on the actual financial performance of the Company in
failing to achieve designated corporate financial objectives
despite attaining a strategic revenue objective measured against
competitor performance and a customer satisfaction rating in
excess of target. Mr.&nbsp;Chambers did not receive an incentive
award for fiscal year 2001 in accordance with the formula for
the incentive plan used for all executive officers. The option
grant made to Mr.&nbsp;Chambers during the 2001 fiscal year was
awarded at the same time the Committee granted stock options to
other employees under the Company&#146;s broad-based stock
option program. The option grant made to Mr.&nbsp;Chambers was
based upon his performance and leadership with the Company and
placed a significant portion of his total compensation at

<P align="center">11

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<P><HR noshade><P>

<DIV align="left">
risk, since the value of the option grant depends upon the
appreciation of the Company&#146;s Common Stock over the option
term.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Compliance with Internal Revenue Code Section&nbsp;162(m).
</I>Section&nbsp;162(m) of the Internal Revenue Code disallows a
Federal income tax deduction to publicly held companies for
compensation paid to certain of their executive officers, to the
extent that compensation exceeds $1&nbsp;million per covered
officer in any fiscal year. This limitation applies only to
compensation which is not considered to be performance based.
The Company&#146;s 1996 Stock Incentive Plan has been structured
so that any compensation deemed paid in connection with the
exercise of option grants made under that plan will qualify as
performance-based compensation which will not be subject to the
$1&nbsp;million limitation. Non-performance based compensation
paid to the Company&#146;s executive officers for the 2001
fiscal year did not exceeded the $1&nbsp;million limit per
officer for any of the Named Officers subject to
Section&nbsp;162(m). The Committee has decided that it is not
appropriate at this time to take any action to limit the
Company&#146;s discretion to design the cash compensation
packages payable to the Company&#146;s executive officers.

<P align="center">
<B>Submitted by the Compensation/ Stock Option Committee</B>

<P align="center">
Carol Bartz, <I>Chairman</I>

<DIV align="center">
James F. Gibbons
</DIV>

<DIV align="center">
James C. Morgan
</DIV>

<P align="left">
<B>Compensation Committee Interlocks and Insider
Participation</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The members of the Compensation/ Stock Option Committee of the
Company&#146;s Board of Directors for the Company&#146;s 2001
fiscal year were those named above in the Compensation/ Stock
Option Committee Report. No member of this Committee was at any
time during the Company&#146;s 2001 fiscal year or at any other
time an officer or employee of the Company.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No executive officer of the Company has served on the board of
directors or compensation committee of any other entity that has
or has had one or more executive officers serving as a member of
the Board of Directors.

<P align="center">12

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="left">
<B>Summary of Cash and Certain Other Compensation</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth the compensation earned, by the
Company&#146;s Chief Executive Officer and the four other
highest-paid executive officers whose salary and bonus for the
Company&#146;s 2001 fiscal year were in excess of $100,000, for
services rendered in all capacities to the Company and its
subsidiaries for each of the last three or fewer fiscal years
during which such individuals served as executive officers of
the Company. No executive officer who would have otherwise been
includable in such table on the basis of salary and bonus earned
for the Company&#146;s 2001 fiscal year has been excluded by
reason of his or her termination of employment or change in
executive status during that fiscal year. The individuals
included in the following table are collectively referred to as
the &#147;Named Officers.&#148;

<P align="center">
<B>SUMMARY COMPENSATION TABLE</B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="30%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="15"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="15" align="center" nowrap><B><FONT size="2">Compensation</FONT></B></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="15" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="11"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Long-Term</FONT></B></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="11" align="center" nowrap><B><FONT size="2">Annual Compensation</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Other Annual</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Compensation</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">All Other</FONT></B></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Compensation</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Awards</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Compensation</FONT></B></TD>
</TR>

<TR>
	<TD colspan="2" align="center" nowrap><B><FONT size="2">Name and Principal Position</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Year</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Salary($)</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Bonus($)(1)</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">($)(2)</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Options(#)</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">($)(3)</FONT></B></TD>
</TR>

<TR>
	<TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">John T. Chambers
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2001</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">268,131</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,000,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,500</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">President, Chief Executive
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">323,319</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,000,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,000,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,500</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Officer, Director
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1999</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">305,915</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">637,184</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,000,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,500</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Larry R. Carter
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2001</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">424,212</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">600,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,500</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Senior Vice President,
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">386,262</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">861,750</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">850,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,500</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Finance and Administration,
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1999</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">367,063</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">612,131</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13,085</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">640,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,500</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Chief Financial Officer,<BR>
	Secretary and Director
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Richard J. Justice(4)
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2001</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">384,462</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">600,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,500</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Senior Vice President,
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">335,241</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">748,186</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">17,134</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">900,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,500</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Worldwide Field Operations
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">James Richardson(4)
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2001</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">383,108</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">587,500</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,500</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Senior Vice President,
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">277,907</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">580,458</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">650,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,500</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Enterprise Line of Business
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Michelangelo Volpi(4)
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2001</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">380,346</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">600,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,500</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Senior Vice President,
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">317,885</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">710,331</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">900,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,500</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Chief Strategy Officer
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="18%" align="left" noshade>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="4%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>(1)&nbsp;</TD>
	<TD align="left">
	The amounts shown under the Bonus column represent cash bonuses
	earned for the indicated fiscal years.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(2)&nbsp;</TD>
	<TD align="left">
	The amounts reported consist of reimbursement for the payment of
	taxes attributable to imputed interest income on certain loans
	made by the Company to the Named Officer.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(3)&nbsp;</TD>
	<TD align="left">
	Represents the matching contribution which the Company made on
	behalf of each Named Officer to the Company&#146;s 401(k) Plan.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(4)&nbsp;</TD>
	<TD align="left">
	Appointed an executive officer on April&nbsp;17, 2000. Effective
	August&nbsp;23, 2001, Messrs. Richardson and Volpi assumed the
	positions of Senior Vice President, Chief Marketing Officer and
	Senior Vice President, Internet Switching and Services,
	respectively.</TD>
</TR>

</TABLE>

<P align="center">13

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="left">
<B>Stock Options</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table provides information with respect to the
stock option grants made during the Company&#146;s 2001 fiscal
year under the Company&#146;s 1996 Stock Incentive Plan to the
Named Officers. No stock appreciation rights were granted to the
Named Officers during the fiscal year.

<P align="center">
<B>OPTION GRANTS IN LAST FISCAL YEAR</B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="26%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="15"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="15" align="center" nowrap><B><FONT size="2">Individual Grants</FONT></B></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="15" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Number of</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">% of Total</FONT></B></TD>
	<TD></TD>
	<TD colspan="7"></TD>
	<TD></TD>
	<TD colspan="7" align="center" nowrap><B><FONT size="2">Value of Assumed Annual</FONT></B></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Securities</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Options</FONT></B></TD>
	<TD></TD>
	<TD colspan="7"></TD>
	<TD></TD>
	<TD colspan="7" align="center" nowrap><B><FONT size="2">Rates of Stock</FONT></B></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Underlying</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Granted to</FONT></B></TD>
	<TD></TD>
	<TD colspan="7"></TD>
	<TD></TD>
	<TD colspan="7" align="center" nowrap><B><FONT size="2">Price Appreciation</FONT></B></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Options</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Employees</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Exercise</FONT></B></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7" align="center" nowrap><B><FONT size="2">for Option Term(3)</FONT></B></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Granted</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">in Fiscal</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Price</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Expiration</FONT></B></TD>
	<TD></TD>
	<TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
	<TD align="center" nowrap><B><FONT size="2">Name</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">(1)</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Year</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">($/Share)(2)</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Date</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">5%($)</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">10%($)</FONT></B></TD>
</TR>

<TR>
	<TD align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">John T. Chambers
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,000,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1.3429</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">50.3750</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11/13/09</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">111,092,636</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">273,626,460</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,000,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">.6715</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18.5700</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">05/14/10</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">20,476,330</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">50,434,177</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Larry R. Carter
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">400,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">.1343</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">50.3750</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11/13/09</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11,109,264</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">27,362,646</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">200,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">.0671</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18.5700</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">05/14/10</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,047,633</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,043,418</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Richard J. Justice
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">400,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">.1343</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">50.3750</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11/13/09</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11,109,264</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">27,362,646</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">200,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">.0671</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18.5700</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">05/14/10</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,047,633</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,043,418</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">James Richardson
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">400,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">.1343</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">50.3750</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11/13/09</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11,109,264</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">27,362,646</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">187,500</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">.0629</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18.5700</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">05/14/10</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,919,656</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,728,204</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Michelangelo Volpi
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">400,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">.1343</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">50.3750</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11/13/09</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11,109,264</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">27,362,646</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">200,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">.0671</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18.5700</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">05/14/10</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,047,633</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,043,418</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="18%" align="left" noshade>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="4%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>(1)&nbsp;</TD>
	<TD align="left">
	Options were granted on November&nbsp;13, 2000 and May&nbsp;14,
	2001 and have a maximum term of nine years measured from the
	applicable grant date, subject to earlier termination in the
	event of the optionee&#146;s cessation of service with the
	Company. Each of the options granted in November 2000 will
	become exercisable for 20% of the option shares upon the
	completion of one year of service measured from the grant date
	and will become exercisable for the remaining shares in equal
	monthly installments over the next 48&nbsp;months of service
	thereafter. Each of the options granted in May 2001 will become
	exercisable for the option shares in a series of successive
	equal monthly installments upon completion of each month of
	service over the 60-month period measured from the grant date.
	However, each of the November 2000 and May 2001 options will
	immediately become exercisable for all of the option shares in
	the event the Company is acquired by a merger or asset sale,
	unless the options are assumed by the acquiring entity, or in
	the event there is a hostile change in control or ownership of
	the Company.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(2)&nbsp;</TD>
	<TD align="left">
	The exercise price may be paid in cash or in shares of Common
	Stock valued at fair market value on the exercise date or may be
	paid with the proceeds from a same-day sale of the purchased
	shares. The Company also has the authority to finance the
	optionee&#146;s exercise of the option by loaning such
	individual on a full-recourse basis sufficient funds to cover
	the exercise price for the purchased shares, together with any
	federal and state withholding tax liability incurred by the
	optionee in connection with the option exercise.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(3)&nbsp;</TD>
	<TD align="left">
	There is no assurance provided to any executive officer or any
	other holder of the Company&#146;s securities that the actual
	stock price appreciation over the nine year option term will be
	at the assumed 5% or 10% annual rates of compounded stock price
	appreciation or at any other defined level. Unless the market
	price of the Common Stock appreciates over the option term, no
	value will be realized from the option grants made to the
	executive officers.</TD>
</TR>

</TABLE>

<P align="center">14

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="left">
<B>Option Exercises and Holdings</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The table below sets forth information with respect to the Named
Officers concerning their exercise of options during the
Company&#146;s 2001 fiscal year and the unexercised options held
by them as of the end of such year. No stock appreciation rights
were exercised during the fiscal year, and no stock appreciation
rights were outstanding at the end of the fiscal year.

<P align="center">
<B>AGGREGATED OPTION EXERCISES IN LAST FISCAL YEAR</B>

<DIV align="center">
<B>AND FISCAL YEAR-END OPTION VALUES</B>
</DIV>

<TABLE width="80%" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="31%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7" align="center" nowrap><B><FONT size="2">Number of Securities</FONT></B></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7" align="center" nowrap><B><FONT size="2">Underlying Unexercised</FONT></B></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Number of</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Value</FONT></B></TD>
	<TD></TD>
	<TD colspan="7" align="center" nowrap><B><FONT size="2">Options at July&nbsp;28, 2001</FONT></B></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Shares Acquired</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Realized</FONT></B></TD>
	<TD></TD>
	<TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
	<TD align="center" nowrap><B><FONT size="2">Name</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">on Exercise</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">($)(1)</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Exercisable</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Unexercisable</FONT></B></TD>
</TR>

<TR>
	<TD align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">John T. Chambers
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18,791,667</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12,608,333</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Larry R. Carter
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">500,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">29,009,200</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,311,125</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,743,875</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Richard J. Justice
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,516,959</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,729,291</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">James Richardson
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,391,979</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,632,083</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Michelangelo Volpi
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,187,312</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">30,412,046</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">916,250</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,583,750</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>

<P align="right">[Additional columns below]

<P>[Continued from above table, first column(s) repeated]

<TABLE width="50%" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="48%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="11%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="10%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="12%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="11%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="7"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="7" align="center" nowrap><B><FONT size="2">Value of Unexercised</FONT></B></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="7" align="center" nowrap><B><FONT size="2">In-the-Money Options</FONT></B></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="7" align="center" nowrap><B><FONT size="2">at July&nbsp;28, 2001($)(2)</FONT></B></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
	<TD align="center" nowrap><B><FONT size="2">Name</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Exercisable</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Unexercisable</FONT></B></TD>
</TR>

<TR>
	<TD align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">John T. Chambers
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">185,775,479</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">8,585,071</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Larry R. Carter
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">31,218,883</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,620,798</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Richard J. Justice
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10,575,554</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,124,164</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">James Richardson
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10,053,470</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,461,388</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Michelangelo Volpi
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,105,965</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">810,740</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>

<DIV align="left">
<HR size="1" width="18%" align="left" noshade>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="4%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>(1)&nbsp;</TD>
	<TD align="left">
	Based upon the market price of the purchased shares on the
	exercise date less the option exercise price paid for such
	shares.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(2)&nbsp;</TD>
	<TD align="left">
	Based upon the market price of $19.06 per share, which was the
	closing selling price per share of Common Stock on the Nasdaq
	National Market on the last day of the Company&#146;s 2001
	fiscal year, less the option exercise price payable per share.</TD>
</TR>

</TABLE>

<P align="left">
<B>Employment Contracts, Termination of Employment, and Change
in Control Agreements</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of the end of the Company&#146;s 2001 fiscal year, none of
the Company&#146;s executive officers had employment or
severance agreements with the Company, and their employment
could be terminated at any time at the discretion of the Board
of Directors.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each outstanding option under the Company&#146;s 1996 Stock
Incentive Plan will vest and become immediately exercisable for
all of the option shares at the time subject to that option in
the event there should occur a hostile take-over of the Company,
whether through a tender offer for more than thirty-five percent
of the Company&#146;s outstanding voting securities which the
Board does not recommend the shareholders to accept or a change
in the majority of the Board as a result of one or more
contested elections for Board membership.

<P align="left">
<B>Certain Relationships and Related Transactions</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
From time to time, the Company may provide loans to certain
officers of the Company in connection with their employment. On
December&nbsp;24, 2000, the Company loaned Kevin Kennedy, who at
the time was Senior Vice President, IOS Technologies and Service
Provider Line of Business, the amount of $3,800,000. The loan is
a full recourse obligation of Mr.&nbsp;Kennedy and bears
interest at the rate of 6.01% per year, compounded
semi-annually. The entire balance of the loan (principal and
accrued interest) is scheduled to become due and payable in one
lump sum on December&nbsp;26, 2002, subject to acceleration in
the event Mr.&nbsp;Kennedy should cease to remain in the
Company&#146;s service prior to that date. The loan documents
provide that Mr.&nbsp;Kennedy must at all times maintain
ownership of a sufficient number of vested stock options for the
Company&#146;s common stock such that the after-tax value of the
spread on those options (the excess of the fair market value of
the vested shares subject to those options over the exercise
price payable for those shares) is at least equal to the unpaid
balance of the loan. To the extent the after-tax value of the
spread on the vested options falls below the loan balance by
reason of one or more option exercises, Mr.&nbsp;Kennedy must
either pay down the loan balance or pledge vested shares of the
Company&#146;s common stock as collateral for the loan. As of
August&nbsp;31, 2001, the outstanding unpaid balance of
Mr.&nbsp;Kennedy&#146;s loan was approximately $3,958,000.

<P align="center">15

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="center">
<B>AUDIT COMMITTEE REPORT</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>The information contained in this report shall not be deemed
to be &#147;soliciting material&#148; or &#147;filed&#148; or
incorporated by reference in future filings with the SEC, or
subject to the liabilities of Section&nbsp;18 of the Exchange
Act, except to the extent that the Company specifically
incorporates it by reference into a document filed under the
Securities Act of 1933, as amended, or the Exchange Act.</I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee has reviewed and discussed with the
Company&#146;s management and PricewaterhouseCoopers LLP the
audited consolidated financial statements of the Company
contained in the Company&#146;s Annual Report on Form&nbsp;10-K
for the Company&#146;s 2001 fiscal year. The Audit Committee has
also discussed with PricewaterhouseCoopers LLP the matters
required to be discussed pursuant to SAS No.&nbsp;61
(Codification of Statements on Auditing Standards,
AU&nbsp;Section&nbsp;380), which includes, among other items,
matters related to the conduct of the audit of the
Company&#146;s consolidated financial statements.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee has received and reviewed the written
disclosures and the letter from PricewaterhouseCoopers LLP
required by Independence Standards Board Standard No.&nbsp;1
(Independence Discussions with Audit Committees), and has
discussed with PricewaterhouseCoopers LLP its independence from
the Company.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based on the review and discussions referred to above, the Audit
Committee recommended to the Board of Directors that the audited
consolidated financial statements be included in the
Company&#146;s Annual Report on Form&nbsp;10-K for its 2001
fiscal year for filing with the SEC.

<P align="center">
<B>Submitted by the Audit Committee</B>

<P align="center">
Steven M. West, <I>Chairman</I>

<DIV align="center">
Mary Cirillo
</DIV>

<DIV align="center">
Arun Sarin
</DIV>

<P align="center">16

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="center">
<B>STOCK PERFORMANCE GRAPH</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The graph depicted below shows a comparison of cumulative total
shareholder returns for the Company, the Standard&nbsp;&#38;
Poor 500 Stock Index and the Hambrecht&nbsp;&#38; Quist
Technology Index.

<P align="center">
<B>COMPARISON OF FIVE-YEAR CUMULATIVE TOTAL RETURN</B>

<P align="left">
<B>[PERFORMANCE GRAPH]</B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="37%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">HAMBRECHT &#38; QUIST</FONT></B></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">CISCO SYSTEMS, INC.</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">S&#38;P 500</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">TECHNOLOGY</FONT></B></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">7/26/96
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100.00</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100.00</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100.00</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">7/25/97
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">155.00</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">152.00</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">169.00</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">7/24/98
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">285.00</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">181.00</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">182.00</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">7/30/99
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">544.00</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">218.00</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">294.00</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">7/28/00
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1100.00</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">238.00</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">490.00</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">7/27/01
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">334.00</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">204.00</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">244.00</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="center">

</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="39%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD colspan="25"></TD>
</TR>

<TR>
	<TD colspan="25" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">7/26/96</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">7/25/97</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">7/24/98</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">7/30/99</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">7/28/00</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">7/27/01</FONT></B></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="25"></TD>
</TR>

<TR>
	<TD colspan="25" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">&nbsp;Cisco Systems, Inc.&nbsp;
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">155</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">285</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">544</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,100</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">334</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">&nbsp;Standard &#38; Poor 500 Stock Index
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">152</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">181</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">218</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">238</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">204</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">&nbsp;Hambrecht &#38; Quist Technology Index
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">169</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">182</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">294</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">490</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">244</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD colspan="25" align="left"><HR size="1" noshade></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Notwithstanding anything to the contrary set forth in any of the
Company&#146;s previous filings under the Securities Act of 1933
or the Exchange Act that might incorporate future filings made
by the Company under those statutes, the preceding Compensation/
Stock Option Committee Report and the Stock Performance Graph
will not be incorporated by reference into any of those prior
filings, nor will such report or graph be incorporated by
reference into any future filings made by the Company under
those statutes.

<P align="left">
<B>Notes</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(1)&nbsp; The graph covers the period from July&nbsp;26, 1996,
the last trading day before the Company&#146;s 1997 fiscal year,
to July&nbsp;27, 2001, the last trading day before the
Company&#146;s 2002 fiscal year.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(2)&nbsp; The graph assumes that $100 was invested in the
Company on July&nbsp;26, 1996, in Common Stock and in each
index, and that all dividends were reinvested. No cash dividends
have been declared on shares of Common Stock.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(3)&nbsp; Shareholder returns over the indicated period should
not be considered indicative of future shareholder returns.

<P align="center">17

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="center">
<B>SHAREHOLDER PROPOSALS FOR 2002 PROXY STATEMENT</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Shareholders of the Company may submit proposals on matters
appropriate for shareholder action at meetings of the
Company&#146;s shareholders in accordance with Rule&nbsp;14a-8
promulgated under the Exchange Act
(&#147;Rule&nbsp;14a-8&#148;). For such proposals to be included
in the Company&#146;s proxy materials relating to its Annual
Meeting of Shareholders to be held in 2002, all applicable
requirements of Rule&nbsp;14a-8 must be satisfied and such
proposals must be received by the Company no later than
May&nbsp;31, 2002. Such proposals should be delivered to Cisco
Systems, Inc., 170&nbsp;W.&nbsp;Tasman Drive, San Jose,
California 95134-1706, Attn: Secretary, with a copy to Cisco
Systems, Inc., 170&nbsp;W.&nbsp;Tasman Drive, San Jose,
California 95134-1706, Attn: Senior Vice President, Corporate
Affairs.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Except in the case of proposals made in accordance with
Rule&nbsp;14a-8, the Bylaws of the Company require that
shareholders intending to bring any business before an annual
meeting of shareholders deliver written notice thereof to the
Secretary of the Company not less than sixty nor more than
ninety days prior to the anniversary of the date on which the
Company first mailed its proxy materials for its immediately
preceding annual meeting of shareholders (as specified in the
Company&#146;s proxy materials for its immediately preceding
annual meeting of shareholders). However, in the event that the
annual meeting is called for a date which is not within thirty
days of the anniversary of the date on which the immediately
preceding annual meeting of shareholders was called, to be
timely, notice by the shareholder must be so received not later
than the close of business on the tenth day following the date
on which public announcement of the date of the annual meeting
is first made. In no event will the public announcement of an
adjournment of an annual meeting of shareholders commence a new
time period for the giving of a shareholder&#146;s notice as
provided above. The Bylaws of the Company further require, among
other things, that the notice by the shareholder set forth a
description of the business to be brought before the meeting and
certain information concerning the shareholder proposing such
business, including such shareholder&#146;s name and address,
the class and number of shares of the Company&#146;s capital
stock that are owned beneficially by such shareholder and any
material interest of such shareholder in the business proposed
to be brought before the meeting. The chairman of the meeting
may refuse to permit to be brought before the meeting any
shareholder proposal (other than a proposal made in accordance
with Rule&nbsp;14a-8) not made in compliance with these
requirements. Similar procedures prescribed by the Bylaws of the
Company are applicable to shareholders desiring to nominate
candidates for election as directors.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the proxy solicited by the Board of Directors for
the 2002 Annual Meeting of Shareholders will confer
discretionary authority to vote on any shareholder proposal
presented at that meeting, if the Company is not provided with
notice of such proposal on or prior to July&nbsp;30, 2002.

<P align="center">
<B>FORM 10-K</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
THE COMPANY WILL MAIL WITHOUT CHARGE, UPON WRITTEN REQUEST, A
COPY OF THE COMPANY&#146;S ANNUAL REPORT ON FORM&nbsp;10-K FOR
THE FISCAL YEAR ENDED JULY&nbsp;28, 2001, INCLUDING THE
FINANCIAL STATEMENTS, SCHEDULES AND LIST OF EXHIBITS. REQUESTS
SHOULD BE SENT TO CISCO SYSTEMS, INC., 170&nbsp;W.&nbsp;TASMAN
DRIVE, SAN JOSE, CALIFORNIA 95134-1706, ATTN: INVESTOR RELATIONS.

<P align="center">18

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="center">
<B>OTHER MATTERS</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board knows of no other matters to be presented for
shareholder action at the Annual Meeting. However, if other
matters do properly come before the Annual Meeting or any
adjournments or postponements thereof, the Board intends that
the persons named in the proxies will vote upon such matters in
accordance with their best judgment.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="38%"></TD>
	<TD width="62%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	BY ORDER OF THE BOARD OF DIRECTORS</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	/s/ LARRY R. CARTER</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	Larry R. Carter</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	<I>Secretary</I></TD>
</TR>

</TABLE>

<P align="left">
Dated: September&nbsp;28, 2001

<P align="center">19

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="right">
<B>APPENDIX A</B>

<P align="center">
<B>CISCO SYSTEMS, INC.</B>

<P align="center">
<B>CHARTER FOR THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS</B>

<P align="left">
<B>1. Purpose</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The primary function of the Audit Committee is to assist the
Board of Directors in fulfilling its oversight responsibilities
by reviewing the financial information which will be provided to
the shareholders and others, the systems of internal controls
which management and the Board of Directors have established,
and the Company&#146;s audit and financial reporting process.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The independent accountants&#146; ultimate responsibility is to
the Board of Directors and the Audit Committee, as
representatives of the shareholders. These representatives have
the ultimate authority to select, evaluate, and, where
appropriate, replace the independent accountants.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee will primarily fulfill these
responsibilities by carrying out the activities enumerated in
Section&nbsp;3 of the Charter. The Committee shall be given full
access to the Company&#146;s Internal Control Services group,
Board Chairman, Company executives and independent accountants
as necessary to carry out these responsibilities.

<P align="left">
<B>2. Composition of the Audit Committee</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee shall be comprised of three or more
directors, each of whom will be independent as defined by the
National Association of Securities Dealers, Inc. (NASD).

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All members of the Committee shall be able to read and
understand fundamental financial statements, including a balance
sheet, income statement, and cash flow statement.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At least one member of the Committee shall have past employment
experience in finance or accounting, requisite professional
certification in accounting, or any other comparable experience
or background which results in the individual&#146;s financial
sophistication, including being or having been a chief executive
officer, chief financial officer or other senior officer with
financial oversight responsibilities.

<P align="left">
<B>3. Responsibilities and Duties</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To fulfill its responsibilities and duties, the Audit Committee
shall:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="97%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	1. Review annually the Audit Committee Charter for adequacy and
	recommend any changes to the Board.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	2. Review the accounting principles, policies and practices
	followed by the Company in accounting for and reporting its
	financial results of operations.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	3. Review the financial, investment and risk management policies
	followed by the Company in operating its business activities.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	4. Review the Company&#146;s annual financial statements.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	5. Review any management letter prepared by the independent
	accountants and review the Company&#146;s internal financial
	controls, including the activities of the Company&#146;s
	Internal Controls Services department.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	6. Recommend to the Board of Directors the selection of the
	independent accountants.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	7. Obtain on an annual basis a formal written statement from the
	independent accountants delineating all relationships between
	the accountants and the Company consistent with Independence
	Standards Board Standard No.&nbsp;1, and review and discuss with
	the accountants all significant relationships the accountants
	have with the Company to determine the accountants&#146;
	independence.</TD>
</TR>

</TABLE>

<P align="center">A-1

<!-- PAGEBREAK -->
<P><HR noshade><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="97%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	8. Review the effectiveness of the independent audit effort,
	including approval of the scope of, and fees charged in
	connection with, the annual audit, quarterly reviews and any
	non-audit services being provided.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	9. Review the performance of the independent accountants and
	approve any proposed changes in accountants when circumstances
	warrant.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	10. Following completion of the annual audit, review separately
	with the independent accountants, the Internal Control Services
	department, and management any significant difficulties
	encountered during the course of the audit.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	11. Report to the Board on the major items covered at each Audit
	Committee meeting and make recommendations to the Board and
	management concerning these matters.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	12. Perform any other activities consistent with this charter,
	the Corporation&#146;s Bylaws and governing law as the Committee
	or the Board deems necessary or appropriate.</TD>
</TR>

</TABLE>

<P align="left">
<B>4. Audit Committee Meetings</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Committee will meet on a regular basis, approximately 3 to 4
times each year, and will hold special meetings as circumstances
require. The timing of the meetings shall be determined by the
Audit Committee.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At all Audit Committee meetings a majority of the total number
of members shall constitute a quorum.

<P align="left">
<B>5. Communication Between Audit Committee Meetings</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Committee will meet at any time if the independent
accountants believe that certain communication to the committee
(e.g., significant events, transactions or changes to accounting
principles affecting the quality of financial statements) is
required in connection with their review of quarterly reporting.

<P align="center">A-2

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV align="center">
DIRECTIONS TO PARAMOUNT&#146;S GREAT AMERICA MAP
</DIV>

<P align="left">
<B>1028-PSA-01</B>
<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="center"><FONT size="2"><B>CISCO SYSTEMS</B></FONT>

<P align="center"><FONT size="2"><B>(CISCO SYSTEMS LOGO)</B></FONT>

<P align="center"><FONT size="2"><B>CISCO SYSTEMS, INC.<BR>
c/o Proxy Services<BR>
P.O. Box 9142<BR>
Farmingdale, NY 11735</B>
</FONT>

<P><FONT size="2"><B>VOTE BY INTERNET &#151; www.proxyvote.com</B><BR>
Use the internet to transmit your voting instructions
and for electronic delivery of information up until 11:59&nbsp;P.M.
Eastern Time the day before the meeting date.
Have your proxy card in hand when you access the
web site. You will be prompted to enter your 12-digit
Control Number which is located below to obtain your
records and to create an electronic voting instruction
form.
</FONT>
<P><FONT size="2"><B>VOTE BY PHONE &#151; 1-800-690-6903</B><BR>
Use any touch-tone telephone to transmit your voting
instructions up until 11:59&nbsp;P.M. Eastern Time the day
before the meeting date. Have your proxy card in hand
when you call. You will be prompted to enter your 12-
digit Control Number which is located below and then
follow the simple instructions the Vote Voice provides
you.
</FONT>
<P><FONT size="2"><B>VOTE BY MAIL</B><BR>
Mark, sign, and date your proxy card and return it in the
postage-paid envelope we have provided or return it to
Cisco Systems, Inc., c/o&nbsp;ADP, 51&nbsp;Mercedes Way,
Edgewood, NY 11717.
</FONT>
<P align="center"><FONT size="2">DO NOT RETURN YOUR PROXY CARD IF YOU ARE<BR>
VOTING BY TELEPHONE OR INTERNET</FONT>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="57%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="33%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top" nowrap><FONT size="1">TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="1">
CISSYS
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top" nowrap><FONT size="1">KEEP THIS PORTION FOR YOUR RECORDS</FONT></TD>
</TR>
<TR>
        <TD valign="top"><HR size="1" noshade></TD>
        <TD valign="top"><HR size="1" noshade></TD>
        <TD align="left" valign="top"><FONT size="2">
<HR size="1" noshade>
</FONT></TD>
        <TD valign="top"><HR size="1" noshade></TD>
        <TD align="left" valign="top"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="1">DETACH AND RETURN THIS PORTION ONLY</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2"><B>THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.</B></FONT>

<P><FONT size="2"><B>CISCO SYSTEMS, INC.</B>
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="42%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="31%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">1.</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
To elect eleven members of the Board of Directors to serve until the
next Annual Meeting and until their successors have been elected
and qualified.<BR>
NOMINEES: (01)&nbsp;Carol&nbsp;A. Bartz, (02)&nbsp;Larry&nbsp;R. Cartier, (03)&nbsp;John&nbsp;T.
Chambers, (04)&nbsp;Carleton&nbsp;S. Florina, (05)&nbsp;Dr.&nbsp;James&nbsp;F. Glabonis,
(06)&nbsp;James&nbsp;C. Morgan, (07)&nbsp;John&nbsp;P. Morgridge, (08)&nbsp;Arun Sarin,
(09)&nbsp;Donald&nbsp;T. Valentine, (10)&nbsp;Steven&nbsp;M. West, (11)&nbsp;Jarry Yang.
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2"><B>For<BR>
All</B><BR>
&#091;&nbsp;&nbsp;&nbsp;&#093;
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2"><B>Withhold<BR>
All</B><BR>
&#091;&nbsp;&nbsp;&nbsp;&#093;
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top" nowrap><FONT size="2"><B>For All<BR>
Except</B><BR>
&#091;&nbsp;&nbsp;&nbsp;&#093;
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top" nowrap><FONT size="2"><B>To withhold authority to vote, mark &#147;For All Except&#148;<BR>
and write the inside number on the line below.<BR></B><BR>
        <HR size="1" noshade>
</FONT></TD>
</TR>
</TABLE>
</CENTER>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="6%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="73%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD colspan="3"><FONT size="2"><B>Vote On Proposal</B></FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center"><FONT size="2"><B>For</B></FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center"><FONT size="2"><B>Against</B></FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center"><FONT size="2"><B>Abstain</B></FONT></TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">2.</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
To ratify the appointment of PricewaterhouseCoopers LLP as the
Company&#146;s independent accountants for the fiscal year
ending July&nbsp;27, 2002;
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="bottom"><FONT size="2">&#091;&nbsp;&nbsp;&nbsp;&#093;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="bottom"><FONT size="2">&#091;&nbsp;&nbsp;&nbsp;&#093;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="bottom"><FONT size="2">&#091;&nbsp;&nbsp;&nbsp;&#093;</FONT></TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">3.</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
To act upon such other matters as may properly come before the meeting or any adjournments or postponements thereof.</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="55%">
<TR valign="bottom">
        <TD width="83%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="12%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">MARK HERE FOR ADDRESS CHANGE<BR>
AND NOTE ON THE REVERSE SIDE</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
&#091;&nbsp;&nbsp;&nbsp;&#093;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P><FONT size="2">Please sign your name exactly as it appears hereon. If acting as attorney,<BR>
executor, trustee, or in other representative capacity, sign name and title.
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="42%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
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Date
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<P align="center"><FONT size="2"><B>PROXY</B></FONT>

<P align="center"><FONT size="2"><B>CISCO SYSTEMS, INC.</B></FONT>

<P align="center"><FONT size="2"><B>ANNUAL MEETING OF SHAREHOLDERS, NOVEMBER 13, 2001<BR>
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS<BR>
OF CISCO SYSTEMS, INC.</B></FONT>

<P><FONT size="2">The undersigned revokes all previous proxies,
acknowledges receipt of the
notice of the shareholders&#146; meeting to be held November&nbsp;13, 2001 and the
proxy statement, and appoints John T. Chambers and Larry R. Carter or either
of them the proxy of the undersigned, with full power of substitution, to vote all shares of
Common Stock of Cisco Systems, Inc. that the undersigned is entitled to vote,
either on his or her own behalf or on behalf of an entity or entities, at the Annual Meeting
of Shareholders of the Company to be held at Paramount&#146;s Great America in the Paramount
Theater, located at 1 Great America Parkway, Santa Clara, California 95054, on Tuesday, November&nbsp;13 at 10:00&nbsp;a.m., and at any adjournment or
postponement thereof, with the same force and effect as the
undersigned might or could do if personally
present thereat. The shares represented by this proxy are as of
September&nbsp;13, 2001,
and shall be voted in the manner set forth on the reverse side.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ADDRESS
CHANGE:
____________________________________________________________________________
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;_______________________________________________________________________________________________
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;_______________________________________________________________________________________________

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        <TD align="center"><FONT size="2">SEE REVERSE<BR>SIDE</FONT></TD>
        <TD align="center"><FONT size="2">CONTINUED AND TO SIGNED ON REVERSE SIDE</FONT></TD>
        <TD align="center"><FONT size="2">SEE REVERSE<BR>SIDE</FONT></TD>
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