Cisco completes acquisition of MI Secure Corporation

Cisco Systems announced it has completed the acquisition of privately-held MI
Secure Corporation of San Jose, Calif. MI Secure is focused on the development
of advanced features and functionality for security and VPN solutions. This
purchase brings unique security technology expertise and a team of proven
security architects to Cisco.

Under the terms of the agreement, Cisco will pay up to approximately $13
million in cash for MI Secure. MI Secure is now part of Cisco's Security
Technology Group (STG).

MI Secure is a research organization with no staff other than its 11-member
engineering team, a Cisco spokeswoman said. MI Secure has no products or
revenue, she said.

Virtual private networks (VPNs) are a popular method used by companies to
give their employees secure access to corporate networks. VPNs are private
networks built using data encryption technology that can run securely over the
public Internet.

"This purchase brings unique security technology expertise and a team of
proven security architects to Cisco," the acquiring company said in a
statement. MI Secure was founded in October, 2004, Cisco spokeswoman Elizabeth
McNichols said. In March, Cisco paid $800,000 to take a minority investment
stake in the company, she said.

The initials in the name MI Secure come from the first name of Michael Herne,
the company's Chief Executive, and Igor Plotnikov, its VP of engineering. The
two partners worked together at a previous security start-up, uRoam, which
subsequently became part of F5 Networks Inc. The 11 employees are engineers with
an average of about 15 years of experience working in computer security
start-ups around Silicon Valley.

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