*George Samenuk Retires as Chief Executive Officer and Chairman of the Board *Charles J. Robel Named Chairman of the Board *Kevin Weiss, President, is Terminated *Management Changes Result From Previously Announced Stock Options Investigation *McAfee Expects Range of $100 Million to $150 Million of Pre-Tax Non-Cash Charges Related to Past Stock Options
SANTA CLARA, Calif., Oct 11, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- McAfee, Inc.
(NYSE: MFE) today announced that its Board of Directors has named Dale Fuller
as Interim Chief Executive Officer and President. The appointment of
Mr. Fuller follows the retirement of George Samenuk as the company's Chairman
of the Board and Chief Executive Officer and the Board's termination of the
employment of Kevin Weiss as the company's President.
Mr. Fuller joined the McAfee(R) Board in January 2006 and served more than
six years as Chief Executive Officer and President of Borland Software
Corporation. Mr. Fuller was also CEO for WhoWhere? Inc., an internet company
that was purchased by Lycos in 1998, and prior to that served as General
Manager and Vice President of Apple Computer's Powerbook division and Vice
President and General Manager of NEC's portable computer division.
In addition, the Board of Directors appointed Charles J. Robel as
non-executive Chairman of the Board. Mr. Robel joined the McAfee Board in June
2006 and served as a Managing Member and Chief Operating Officer at Hummer
Winblad Venture Partners from 2000 to 2005. He began his career at
PricewaterhouseCoopers, from which he retired as a Partner in 2000.
Mr. Samenuk stated, "After almost six years at McAfee, I have retired as
Chairman and CEO in the best interests of the company, its shareholders and
employees. I regret that some of the stock option problems identified by the
Special Committee occurred on my watch. I am proud of the accomplishments of
the McAfee team in serving our millions of customers during my tenure. I wish
the McAfee team the best of luck in the coming years."
Mr. Fuller said, "I look forward to taking on this leadership role and am
committed to continuing the company's initiatives to provide customers
worldwide with innovative security and risk-management software."
The foregoing personnel actions followed the presentation to the McAfee
Board of the determinations by the Special Committee of independent directors
regarding the previously announced investigation of McAfee's historical stock
option grant practices and related accounting.
Following the substantial completion of the Special Committee's previously
announced internal review of McAfee's stock option grant practices, conducted
with the assistance of independent counsel and forensic accountants, McAfee
has determined that it will need to restate historical financial statements to
record additional non-cash charges for stock-based compensation expense over a
ten year period. Based on that preliminary review, McAfee currently believes
that the amount of the restatement required to record such charges is likely
to be in the range of $100 million to $150 million. McAfee will be reviewing
recent guidance released by the Office of the Chief Accountant of the U.S.
Securities and Exchange Commission (SEC) and will determine, subject to final
review by its independent auditors, the exact amount of such charges, the
resulting tax and accounting impact, and which specific prior periods require
restatement. McAfee intends to file its restated financial results and Annual
Report on Form 10-K as quickly as practicable.
The Board has appointed a search subcommittee to immediately commence a
search to fill the permanent position of Chief Executive Officer and intends
to evaluate both internal and external candidates.
McAfee, Inc. will hold a conference call to discuss today's press release
on Wednesday, October 11, 2006 at 9:00 a.m. Eastern Time. To access the
conference call, pleased dial 1-888-790-2935 (U.S. toll-free) or
1-517-623-4381 (international). The passcode is MFE. Participants should
dial-in at least 15 minutes prior to the start of the call. A replay of the
call will be available until October 18, 2006, by calling 1-866-493-8084 (U.S.
toll-free) or 1-203-369-1751 (international).
Investors will have the opportunity to listen to the conference call and
the replay over the Internet through McAfee's Investor Relations Web site at
http://investor.mcafee.com . To listen, please go to the Web site at least 15
minutes early to register, download, and install any necessary audio software.
For those who cannot listen to the live broadcast, a replay will be available
on this site shortly after the call.
ABOUT MCAFEE, INC.
McAfee Inc., headquartered in Santa Clara, California and the global
leader in Intrusion Prevention and Security Risk Management, delivers
proactive and proven solutions and services that secure systems and networks
around the world. With its unmatched security expertise and commitment to
innovation, McAfee empowers home users, businesses, the public sector, and
service providers with the ability to block attacks, prevent disruptions, and
continuously track and improve their security. http://www.mcafee.com .
NOTE: McAfee is a registered trademark of McAfee, Inc. and/or its
affiliates in the US and/or other countries. The color red in connection with
security is distinctive of McAfee brand products. All other registered and
unregistered trademarks herein are the sole property of their respective
This release contains forward-looking statements which include those
regarding the ability of the McAfee executives to continue their initiatives
to customers worldwide with innovative security and risk-management software
as well as statements regarding the expected range of non-cash charges for
stock based compensation expense as a result of the restatement that is
expected to occur following the completion of the Special Committee's
investigation. Such forward-looking statements are subject to risks and
uncertainties and actual results could vary, perhaps materially. Potential
risks and uncertainties include, among other things: 1) the timing of
completion of the Company's review, restatement and filing of its historical
financial statements, 2) the impact of the expensing of stock options and
stock purchases under McAfee's stock plans including, without limitation, the
impact of the restatement, 3) the impact of the departures of George Samenuk
and Kevin Weiss from the Company, 4) the effect of any litigation or other
proceeding arising out of the Special Committee investigation, 5) costs
incurred by McAfee in connection with the Special Committee investigation, the
restatement, any remedial measures recommended by the Special Committee and
the related SEC investigation and 6) the additional risks and important
factors described in McAfee's SEC reports, including its annual report on Form
10-K for the year ended December 31, 2005 and the Quarterly Report on Form
10-Q for the fiscal quarter ended March 31, 2006, which is available at the
SEC's website at http://www.sec.gov . All of the information in this press
release is made as of October 11, 2006, and McAfee undertakes no duty to
update this information.
SOURCE McAfee, Inc.
media, Siobhan MacDermott,