EMC Corporation to acquire VMware

EMC Corporation has announced that it has signed a definitive agreement to
acquire Palo Alto-based VMware, Inc–a privately held company developing
Intel-based virtual computing software–in a cash transaction valued at
approximately $635 million. The acquisition and is expected to be completed
early in the first quarter of 2004.

Upon completion of the acquisition, EMC expects to take a charge of
approximately $15 to $20 million in the first quarter of 2004 for the value of
VMware’s in-process research and development costs

and other integration expenses.

VMware’s technology enables multiple operating systems–including
Microsoft Windows, Linux and NetWare–to run simultaneously and independently
on the same Intel-based server or workstation and dynamically move live
applications across systems with no business disruption.

The acquisition of VMware is expected to play a key role in EMC’s strategy
to help customers lower their costs and simplify their operations by deploying
virtualization technologies across their heterogeneous IT infrastructure to
create a single pool of available storage and computing resources.

Upon completion of the acquisition, EMC plans to operate VMware as a software
subsidiary of EMC, headquartered in Palo Alto and led by Diane Greene, VMware’s
current President and CEO.

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