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To: Ms. Baby Boomer who wrote (2164)	8/10/1999 4:28:00 PM
From: Regeloney	Respond to of 2365

More KPMG/CISCO Info: Media Release KPMG LLP affirms commitment to public offering of consulting practice Firm expects IPO resolution from Standards Board by early 2000 New York, August 9 – KPMG LLP, the US accounting, tax and consulting firm, has reaffirmed its intention to pursue a public offering for a portion of its consulting business. "The KPMG Board of Directors has unanimously reinforced the firm's commitment to a consulting IPO as soon as the Independence Standards Board (ISB) issues its rules on the transaction. We expect a resolution from the ISB by approximately the spring of 2000, at which time we plan to further maximise the value of our fast growing Internet integration business," said Stephen G. Butler, KPMG chairman and CEO. "KPMG's prolonged negotiations with the Securities and Exchange Commission regarding an IPO have adjourned without a satisfactory outcome for the firm. Any further discussion, debate and input on an IPO has been shifted by the commission to the domain of the ISB for review, and, ultimately, rulemaking," Butler added. As announced today, Cisco Systems is expected to make a US$1 billion equity investment in KPMG and help drive additional revenues through referral of business leads from Cisco's 6,000-person sales force. KPMG in turn will add 4,000 consultants to serve the systems integration needs of Cisco's clients. "We expect the Cisco-KPMG relationship to grow the business significantly, creating a more valuable entity, and we believe the market will recognise that valuation at the time of an IPO," Butler said. "This transaction with Cisco is designed to enhance KPMG's leading position in Internet consulting. In addition, the prospect of issuing options following an IPO will afford KPMG a true competitive advantage over our Big Five peers, by enabling us to attract and retain the best talent in the market today and in the future," Butler noted. He added that KPMG shortly will incorporate its consulting practice as "KPMG Consulting." For more information, contact George Ledwith at + 1 (201) 505 3543 or John Fidler at + 1 (201) 505 8849, both at KPMG LLP.

To: Ms. Baby Boomer who wrote (2164)	8/10/1999 4:30:00 PM
From: Regeloney	Read Replies (1) \| Respond to of 2365

And more .........Very Interesting. 4,000 bodies! Cisco to invest US$1 billion in KPMG to expand global Internet services for service provider and enterprise market Joint venture will add 4,000 KPMG engineers to support deployment of Cisco Networks San Jose, California & New York, NY August 9 – Cisco Systems Inc. and KPMG LLP today announced that Cisco plans to invest more than US$1 billion in KPMG's market-leading Internet services business, focusing on telecommunications and enterprise markets. Both companies have signed a letter of intent and KPMG's board of directors has voted to approve the investment. Under the terms of this letter of intent, KPMG, the leading e-Engineer in the marketplace, will add 4,000 Internet integrators over the next 18 months. These engineers will help develop and deliver Internet-based data, voice and video services to clients secured by Cisco's 6,000-person strong sales force. The demand for Internet-based communications services is equally significant worldwide, and KPMG's consultants will also service expanding customer needs in Europe, Asia and Latin America. "We chose to make an investment in KPMG's consulting business because KPMG understands how the Internet will reshape the future of all businesses," said John Chambers, president and CEO, Cisco Systems. "KPMG played an integral role in moving Cisco's own business to the web, where today we are the worldwide leader in e-commerce and in using Internet applications to manage our business. Under this joint venture, our customers can now count on the Internet systems expertise of Cisco and the Internet solutions expertise of KPMG, a significant combination for any company that wants to move their business to the Internet and participate in the emerging Internet Ecosystem of connected businesses and customers." "Any company today planning to move their business to the Internet naturally thinks of partnering with Cisco first, the market leader in networking for Internet," said Stephen G. Butler, chairman and CEO of KPMG LLP. "As the market leader in Internet integration services, KPMG prides itself on delivering the best possible solutions to our Internet customers, and we believe that this relationship with Cisco will further enhance our ability to meet the challenges our clients face in this rapidly evolving new economy." To better serve customers, KPMG will build six Internet innovation centres, work closely with personnel in Cisco sales offices and provide additional support to Cisco's existing customers. KPMG's consulting unit will support customers in the telecommunications and enterprise markets, respectively. Cisco and KPMG expect to sign a definitive agreement and close the transaction in September 1999. The transaction is subject to a number of closing conditions, including obtaining government approvals. KPMG will incorporate its consulting practice as "KPMG Consulting," and Cisco will be represented on KPMG Consulting's board of directors upon approval of the transaction by the firm's partners. For more information, contact George Ledwith at KPMG LLP at + 1 (201) 505 3543 or Doug Wills at Cisco Systems at + 1 (408) 527-9475.