Excessive CEO Pay Vote at Cisco Systems Encourages Shareholders

First-Year Support for Pay Disparity Resolution Garners 9% Percent Vote

NEW YORK, NY. November 11, 2003. Casting a spotlight on an issue of great importance to concerned religious shareholders throughout the country, 9 percent of shareholders at Cisco Systems (NASDAQ: CSCO) today supported a first-year proxy resolution calling for a report comparing the total compensation of the company's top executives and its lowest paid workers both in this country and abroad on January 1, 1982, 1992 and 2002. A first-year support level of 3 percent is required by the U.S. Securities and Exchange Commission (SEC) for this proxy resolution to be reintroduced at Cisco Systems in 2004.

The resolution was co-filed by ICCR Members Christian Brothers Investment Services Inc., Sisters of the Holy Names of Jesus & Mary, Washington Province, and other filers*. The proxy resolution filers asked for a report including: statistics related to any changes in the relative percentage size of the pay gap between the two groups; the rationale justifying any such percentage change; whether top executives' compensation packages (including options, benefits, perks, loans and retirement agreements) are "excessive" and should be changed; as well as any recommendations to adjust the pay "to more reasonable and justifiable levels." Together, the co-filers own just under three million shares of Cisco Systems stock.

Christian Brothers Investment Services, Inc. Corporate Advocacy Coordinator Julie Tanner said: "We are worried about the disparity of John Chambers' salary as compared to the rest of the company's employees. Because the contribution of workers is essential to corporate growth, both the executive and the workers should share in that success. There is a need to restore some measure of proportionality to the relative levels of compensation received by each. However, during a time when Chambers made such a lucrative salary, close to 9,000 Cisco Systems workers were laid off. We as shareholders want to understand how that could happen."

Sisters of the Holy Names of Jesus & Mary, Washington Provincial Director, Sister Ann Pizelo added: "Religious investors are concerned that CEOs receive exorbitant pay and bonuses while jobs are being cut to reduce costs and boost share prices. From a broader perspective, these corporate practices have resulted in the unchecked and growing concentration of wealth and privilege. It is a system that perpetuates itself, and, it does not promote the common good - economically, ecologically, socially or politically."

BACKGROUND ON EXCESSIVE PAY AND CISCO SYSTEMS

Over the last several years, the compensation packages for top executives at large U.S. corporations have grown sharply, increasing the pay gap between the highest and lowest paid employees and weakening the connection between corporate performance and executive compensation. According to a study released in August 2003, the disparity between CEO and worker pay has risen to a gap of 282-to-1, nearly seven times as large as the ratio of 42-to-1 that prevailed in 1982. The study also found that of the 50 companies with the most layoffs in 2001, median CEO pay rose 44 percent from 2001 to 2002.

A review of 243 companies with 2002 revenue of $5 billion or more revealed average annual CEO pay of $12 million a year from 2000 through 2002. Excessive CEO pay has prompted concerns among both social investors and corporate governance activists about how executive compensation should be determined, what level is excessive, and how pay can be used as an incentive for achieving corporate financial and social goals.

Current Cisco Systems CEO John Chambers averaged over $87 million per year over a three-year period according to published reports. That total compensation package is 2,277 times the pay of the average U.S. worker.

ABOUT THE GROUPS

Christian Brothers Investment Services, Inc. (CBIS) manages approximately $3 billion for Catholic organizations seeking to combine faith and finance through the responsible stewardship of Catholic assets. CBIS' combination of premier institutional asset managers, diversified product offerings, and careful risk-control strategies constitutes a unique investment approach for Catholic institutions and their fiduciaries. CBIS strives to integrate faith-based values into the investment process through a disciplined approach to socially responsible investing that includes principled purchasing (stock screens), active ownership strategies (proxy voting, dialogues, and shareholder resolutions) and community investment. Visit CBIS on the Web at www.cbisonline.com.

Sisters of the Holy Names of Jesus and Mary, including the Washington Province, is a faith-based community of woman, rooted in the Catholic tradition, that has been dedicated to the mission of education for more than 150 years. Within this mission they promote justice and create community. The Sisters are among the sixteen members of The Northwest Coalition for Responsible Investments, which is based in Seattle, Washington.

*The filers of the proposal are: Christian Brothers Investment Services, Sisters of Holy Names of Jesus and Mary, Sisters of St. Francis of Dubuque, Iowa, Missionary Oblates of Mary Immaculate, Domini Social Investments, Progressive Investment Management, Friends Fiduciary, The Catholic Equity Fund, and Sisters of Charity of Cincinnati.

Click here to read shareholder remarks delivered at the meeting.

Click here to view resolution.

CONTACT: Stephanie Kendall, for CBIS, (703) 276-3254 or skendall@hastingsgroup.com.