2014

McAfee Board of Directors Names Dale L. Fuller Interim Chief Executive Officer and President *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 /PRNewswire-FirstCall/ -- 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 owners.
     FORWARD-LOOKING STATEMENTS
     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.
RELATED LINKS
http://www.mcafee.com

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