McAfee to reinforce its market position

New Delhi

Aug 6, 2008

McAfee announced a definitive agreement to acquire privately owned Reconnex,
a data loss prevention (DLP) company for $46 million in cash. “Data protection
is the number one concern of Chief Information Security Officers, but today's
DLP solutions take too long to deploy and obtain results,” said Dave DeWalt,
CEO and President, McAfee. “With the pending acquisition of Reconnex, McAfee
expects to redefine the entire data protection market by bringing together a
leader in the hottest segment with our comprehensive portfolio of data
protection technologies. We expect that this will enable us to leapfrog other
data protection vendors and to reinforce our position as the largest dedicated
security company,” he added.

Reconnex's technology helps an organization protect all the information
assets on its network without requiring upfront knowledge of what needs to be
protected, regardless of how that information is stored, secured or
communicated.

“The growing number of high-profile incidents in which customer records,
confidential information and intellectual property were leaked (lost/stolen) has
created an explosive demand for solutions that protect against the deliberate or
inadvertent release of sensitive information,” said Brian Burke, Research
Analyst-Security, IDC. “This acquisition creates a great opportunity for
McAfee to fulfill a critical need in this space. IDC forecasts worldwide revenue
for the information protection and control (IPC) market to grow from $765
million in 2006 to $3.2 billion in 2011, representing a 33 percent compound
annual growth rate. Reconnex's gateway-based technology perfectly compliments
McAfee's existing host-based data protection solution and will position McAfee
securely in this space,” added Burke.

“We expect this acquisition to help McAfee solve the bigger, tougher data
protection problems inhibiting current DLP deployments and will result in
tremendous opportunities for our collective customers and partners,” said John
Peters, CEO, Reconnex.

The acquisition is expected to close in the third quarter of 2008. McAfee
anticipates that following the closing, Reconnex's technologies will be
incorporated under McAfee's Data Protection product business unit, headed by
Gerhard Watzinger.