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Cisco Invests in VMware

PALO ALTO, Calif. and SAN JOSE, Calif. -- VMware, Inc. today announced that Cisco Systems will acquire an equity
stake in the company.

Cisco will purchase $150 million of VMware Class A common shares currently
held by EMC Corporation, VMware's parent company, subject to customary
regulatory and other closing conditions including Hart-Scott-Rodino (HSR)
review. Upon closing of the investment, Cisco will own approximately 1.6
percent of VMware's total outstanding common stock (less than one percent of
the combined voting power of VMware's outstanding common stock). VMware has
agreed to consider the appointment of a Cisco executive to VMware's board of
directors at a future date.

Cisco's purchase is intended to strengthen inter-company collaboration
towards accelerating customer adoption of VMware virtualization products with
Cisco networking infrastructure and the development of customer solutions that
address the intersection of virtualization and networking technologies.

VMware Inc. (NYSE: VMW)

Cisco Systems Inc.