Cisco Remanufacturing Processes Overview February 2008 C 25

Cisco Certified Refurbished Equipment The Cisco Remanufacturing Process Key Steps § Global Sourcing § Check-in/Tracking into Process Control System § Prescreen Inspection § Cisco ECO Upgrades § System Testing § Cosmetic reconditioning including metals, plastics, re-painting—Meets toughest global standards § Environmental Burn in chamber testing—Thermal and Power Cycling § Final Quality Inspection § Debug/Component Level Repair § Packaging § Ro. HS compliance upgrades as required § Cleaning/Reconditioning § Out of Box Audits § Automated Warehouse Management System— Inventory tracking Cisco Remanufacturing Overview C 25 -459099 -c 1 © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 2

The Cisco Remanufacturing Process Sourcing § Lease returns § RMAs and trade-ins § Distributor stock rotations § Manufacturing overruns Cisco Remanufacturing Overview C 25 -459099 -c 1 © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 3

The Cisco Remanufacturing Process Check-In/Tracking § Units and quantities are confirmed § Scanned into automated inventory and test tracking system § Maintains history of each unit Cisco Remanufacturing Overview C 25 -459099 -c 1 © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 4

The Cisco Remanufacturing Process Prescreen Inspection § Damage inspection and assessment § Serial number verification § Counterfeit screening § Rejected units are disposed of in accordance with environmental regulations Cisco Remanufacturing Overview C 25 -459099 -c 1 © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 5

The Cisco Remanufacturing Process Cisco Engineering Change Order (ECOs) Upgrades § Check unit serial number to determine what Engineering Change Orders apply § Proprietary firmware and hardware upgrades applied to all units Cisco Remanufacturing Overview C 25 -459099 -c 1 © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 6

The Cisco Remanufacturing Process Systems Testing § Restore default configuration § Download new IOS § Diagnostics, functional testing, thermal cycling and burn in § Network systems test Cisco Remanufacturing Overview C 25 -459099 -c 1 © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 7

The Cisco Remanufacturing Process Debug/Repair § Failed units are repaired and unit is resubmitted to testing § Cisco AVL parts used in repair § ROHS compliant parts used as appropriate § Repaired units go back through entire testing process § ESD controlled environment Cisco Remanufacturing Overview C 25 -459099 -c 1 © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 8

The Cisco Remanufacturing Process Cleaning/Reconditioning § Cleaned and detailed § Old labels removed and new Cisco labels § New fasteners and panels as appropriate § Casings cleaned, repaired and painted Cisco Remanufacturing Overview C 25 -459099 -c 1 © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 9

The Cisco Remanufacturing Process Final Quality Inspection § QA performs final quality inspection against Acceptance Quality Level standards § Cisco Certified Refurbished Equipment label applied § QA audits of shop floor process § Calibration checks of test equipment § ISO process confirmation § ESD program validations Cisco Remanufacturing Overview C 25 -459099 -c 1 © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 10

The Cisco Remanufacturing Process Packaging § Wrapped in anti-static wrapping § Foam protected packaging § Cisco Certified Refurbished Equipment tape and labels applied Cisco Remanufacturing Overview C 25 -459099 -c 1 © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 11

The Cisco Remanufacturing Process Out of Box Audits § Random number of sealed units are opened and checked against Acceptance Quality Level standards § Verify contents, accessories, quantities § Lean Process and Continuous Improvement team reviews Cisco Remanufacturing Overview C 25 -459099 -c 1 © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 12

The Cisco Remanufacturing Process Inventory/Shipping § Palletized and stored in environmentally controlled warehouse § Daily shipments from centralized warehouses in response to customer orders § Orders booked by 2: 30 p. m. ship same day Cisco Remanufacturing Overview C 25 -459099 -c 1 © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 13

Cisco Certified Refurbished Equipment Key Differentiators in the Cisco Remanufacturing Process § Cisco World-Class Contract Repair Manufacturers and facilities § ISO 9001 -2000 and 14001 Certified Processes § Parts sourced from Cisco Approved Vendors List (AVL) § Cisco proprietary tests and specifications § Process Control Systems and Continuous Improvement— LEAN processes § ESD—Static Control systems in place § Regular calibration of all test equipment § All Cisco Engineering Change Orders incorporated § Current IOS rev and license loaded Cisco Remanufacturing Overview C 25 -459099 -c 1 © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 14

Cisco Certified Refurbished Equipment One Element of Cisco’s Expanding Set of “Green” Initiatives § Reduces landfill and e-waste through re-use and redeployment of Cisco equipment (410, 000 units) § ISO 9001 -2000 certified remanufacturing processes and Quality Management Systems § ISO 14001 certified to meet Environmental Management Standards § Non-serviceable units are recycled or disposed of in compliance with environmental regulations § Ro. HS Certified parts used for Ro. HS designated units that comply with the European Union’s Restricted use of Hazardous Substances requirements Cisco Remanufacturing Overview C 25 -459099 -c 1 © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 15