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Exhibit 99.3
CONTACTS:
Doug Wills
Cisco Systems
408/527-9475
dwills@cisco.com
Mary Thurber
Cisco Systems
408/526-8893
mthurber@cisco.com
FOR IMMEDIATE RELEASE
Lou Volpe
GeoTel Communications Corp.
978/275-5104
louv@geotel.com
Nancy Herzog
GeoTel Communications Corp.
978/275-5115
nancyh@geotel.com
CISCO SYSTEMS TO ACQUIRE GEOTEL COMMUNICATIONS CORP.
Cisco to Extend Internet Infrastructure to Open Software Voice Call Centers
SAN JOSE, Calif. - April 13, 1999 - Cisco Systems, Inc. today announced a
definitive agreement to acquire publicly-held GeoTel Communications Corp. of
Lowell, MA. GeoTel is a leading provider of software solutions for distributed
voice call centers for enterprise and service provider customers. This
acquisition underscores Cisco's commitment to a New World communications network
where data, voice and video traffic will travel over a single network
infrastructure based on the open, standards-based Internet architecture.
Under the terms of the agreement, Cisco will exchange 0.5138 shares of Cisco
common stock for every outstanding share and option of GeoTel. Based on the
closing price as of April 12, 1999, this exchange ratio values the transaction
at approximately $2 billion. This acquisition will be accounted for as a pooling
of interests and is expected to be completed in the fourth quarter of Cisco's
fiscal year 1999. The acquisition has been approved by the board of directors of
each company and is subject to various closing conditions, including approval
under the Hart-Scott-Rodino Antitrust Improvements Act and a vote of GeoTel
shareholders.
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CISCO ACQUIRES GEOTEL 2-2-2-2
The Internet is changing the way companies view customer support from a
traditional support function to a strategic advantage. This acquisition will
bring call center solutions to the Internet enabling flexible, highly
personalized customer support services.
Cisco's strategy is to create an open data and voice software infrastructure for
enterprise and service provider customers as well as Cisco partners. GeoTel
products will enable a software platform allowing Cisco partners and customers
to rapidly innovate and deploy voice applications based on open Internet
standards. This technology also will expand the current Internet Ecosystem to
include more third-party developers focused on creating open voice applications.
"Today's announcement is an extension of our commitment to open voice
technology," said Don Listwin, Cisco executive vice president.
"We believe that Cisco's industry leadership position, strong customer focus,
and commitment to technological excellence provide the ideal combination for
quickly and effectively extending the global penetration of GeoTel solutions
while facilitating Cisco's New World strategy," said John C. Thibault, President
and CEO, GeoTel. "GeoTel is enthusiastically entering this new relationship and
welcomes the opportunity to contribute to Cisco's strategic direction in both
the service provider and enterprise call center markets."
GeoTel's software solution integrates enterprise data applications with voice
infrastructure devices such as PBXs to deliver integrated data and voice to call
centers over an Internet infrastructure and PSTN. GeoTel's network-centric
approach connects every customer to the best available customer service
representative independent of physical location. GeoTel offers a software
solution that is highly reliable that serves both enterprise and service
provider environments enabling Cisco to advance its efforts in providing voice
applications over Internet-based networks.
This acquisition represents the fifth phase of Cisco's five-phase enterprise
data, voice and video integration strategy which extends call control and
management solutions to packet-based networks.
GeoTel was founded in 1993. The 310 employees led by GeoTel President and CEO
John Thibault will report to Don Listwin, executive vice president.
Cisco Systems, Inc. (NASDAQ: CSCO) is the worldwide leader in networking for the
Internet.
GeoTel Communications Corporation (NASDAQ: GEOC) is a leading global provider of
software solutions for call center applications.
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CISCO ACQUIRES GEOTEL 3-3-3-3
Statements in this press release that are not based on historical facts, such as
statements regarding GeoTel's business outlook and customer orders, may be
considered forward-looking statements that involve risks and uncertainties. The
Company's actual results may differ materially from the results discussed in
these forward-looking statements. Factors that could cause or contribute to such
differences include, without limitation, changes in the market, new products and
announcements from other companies, changes in technology, and the impact of
competitive products and pricing. Additional information on the factors that
could affect the Company's financial results is included in the Company's
amended 1998 Form 10-K and other Company reports which are filed with the
Securities and Exchange Commission.
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