Cisco Communications								
		Earnings dilution worksheet							
		Assume:  40% Total earnings yearly growth
		Assume:  4.2% dilution/year
			Results in:	34.4	Forward PE Multiplier	
		#SHARES	$Inc.	EPS	           		Backtrend earnings
4/26/97		1032.5	352.3	0.34 				        352.3
7/26/97		1043.2	383.2	0.37 	PEG=1		$$ Cash		382.2
10/25/97	1056.6	415.7	0.39 	Value	(2)	per share	420.4
1/24/98		1062.5	457.3	0.43 	68.2		1.00 	(3)	444.2
4/25/98		1076.3	483.2	0.45 	73.4	(1)	1.45 		
7/25/98		1087.4	525.6	0.48 	79.0		1.93 		
10/24/98	1098.7	571.7	0.52 	85.1		2.45 		
1/23/99		1110.0	621.9	0.56 	91.6		3.01 		
4/24/99		1121.5	676.5	0.60 	98.6		3.61 		
7/24/99		1133.1	735.8	0.65 	106.2		4.26 		
10/23/99	1144.8	800.4	0.70 	114.3		4.95 		
1/22/00		1156.6	870.7	0.75 	123.1		5.70 		
4/22/00		1168.6	947.1	0.81 	132.5		6.51 		
7/22/00		1180.7	1030.2	0.87 	142.6		7.38 		
10/21/00	1192.9	1120.6	0.94 					
1/20/01		1205.2	1218.9	1.01 					
4/21/01		1217.7	1325.9	1.09 					
7/21/01		1230.3	1442.3	1.17 					

Notes:	
0.  Data taken from SI profiles table, only.  Condition of finances
cannot be derived from a single measure, nor are "earnings" a well-defined quantity in many cases.								
1. Previous four actual earnings are listed.  
Compares well to back-trended.  So well, in fact, that careful calibration
of income statements is presumed to take place.	

2. full value" is calculated as 

(Forward PE factor) X (forward earnings) / (anticipated #shares) 									

3. Cash is accrued from earnings, with 4% annual after tax interest