VMware and Cisco Announce Investment

    PALO ALTO, Calif. and SAN JOSE, Calif., July 27 /PRNewswire-FirstCall/
 -- 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.
     In addition, VMware and Cisco have entered into a routine and customary
 collaboration agreement that expresses their intent to expand cooperative
 efforts around joint development, marketing, customer and industry
 initiatives. Through improved coordination and integration of networking
 and virtualized infrastructure, the companies intend to foster solutions
 for enhanced datacenter optimization and extend the benefits of
 virtualization beyond the datacenter to remote offices and end-user
 desktops.
     About VMware, Inc.
     VMware, an EMC company ( EMC), is the global leader in virtual
 infrastructure software for industry-standard systems. Organizations of all
 sizes use VMware solutions to simplify their IT, fully leverage their
 existing computing investments and respond faster to changing business
 demands. VMware is based in Palo Alto, California. For more information,
 visit www.VMware.com.
     About Cisco Systems
     Cisco, ( CSCO), is the worldwide leader in networking that
 transforms how people connect, communicate and collaborate. Information
 about Cisco can be found at http://www.Cisco.com. For ongoing news, please
 go to http://newsroom.Cisco.com.
     VMware is a registered trademark or trademark of VMware, Inc. in the
 United States and/or other jurisdictions. Cisco, the Cisco logo, Cisco
 Systems, and the Cisco Systems logo are registered trademarks or trademarks
 of Cisco Systems, Inc. and/or its affiliates in the United States and
 certain other countries. All other marks and names mentioned herein may be
 trademarks of their respective companies.
     The statements set forth above include forward-looking statements that
 involve risks and uncertainties. These forward-looking statements include
 the ability of VMware to close the transaction with Cisco and Cisco's
 percentage ownership of VMware common stock. VMware wishes to caution
 readers that a number of important factors could cause actual results to
 differ materially from those in the forward-looking statements. Those
 factors include the inability to close the transaction with Cisco as
 proposed due to, among other things and the failure to receive necessary
 approvals under the Hart-Scott- Rodino Act, and Cisco's percentage
 ownership of VMware common stock will depend upon the number of shares sold
 to the public in VMware's planned public offering. VMware disclaims any
 obligation to update any such forward-looking statements after the date of
 this release.
     THE ISSUER HAS FILED A REGISTRATION STATEMENT (INCLUDING A PROSPECTUS)
 WITH THE SEC FOR THE OFFERING REFERRED TO IN THIS COMMUNICATION. BEFORE YOU
 INVEST, YOU SHOULD READ THE PROSPECTUS IN THAT REGISTRATION STATEMENT AND
 OTHER DOCUMENTS THE ISSUER HAS FILED WITH THE SEC FOR MORE COMPLETE
 INFORMATION ABOUT THE ISSUER AND THIS OFFERING. YOU MAY OBTAIN THESE
 DOCUMENTS FOR FREE BY VISITING EDGAR ON THE SEC WEB SITE AT WWW.SEC.GOV OR
 BY CLICKING ON THE LINK BELOW. ALTERNATIVELY, THE ISSUER, ANY UNDERWRITER
 OR ANY DEALER PARTICIPATING IN THE OFFERING WILL ARRANGE TO SEND TO YOU THE
 PROSPECTUS IF YOU REQUEST IT BY CALLING CITI TOLL-FREE 1-800-831-9146, JP
 MORGAN TOLL-FREE 1-866-430-0686 OR LEHMAN BROTHERS TOLL FREE
 1-888-603-5847.
     TO REVIEW OUR CURRENT REGISTRATION STATEMENT DATED JULY 27, 2007, CLICK
 THE FOLLOWING LINK ON THE SEC WEB SITE AT WWW.SEC.GOV AS FOLLOWS (OR IF
 SUCH ADDRESS HAS CHANGED, BY REVIEWING OUR FILINGS FOR THE RELEVANT DATE ON
 THE SEC WEB SITE):
 http://sec.gov/Archives/edgar/data/1124610/000119312507163560/ds1a.htm OUR
 CENTRAL INDEX KEY, OR CIK, ON THE SEC WEB SITE IS 0001124610.
 
 

SOURCE VMware, Inc.; Cisco Systems