Cupertino, Calif., June 10, 1999 - Symantec Corporation (Nasdaq: SYMC) announced today that it plans to leverage its strength in the Java development solutions market by spinning out its Internet Tools business unit to create a new, independent company.
The new company will focus on the enterprise market by providing solutions for e-commerce and technology for Web-enabling business systems and legacy applications. According to Forrester Research, the market for sell-side e-commerce software is predicted to grow to $1.4 billion by 2002. The new company will also continue development and support of the award-winning and market-leading* VisualCafé product family.
With customers such as Nike, United Airlines and GE Information Systems, and partnerships with leading companies including BEA, Compaq, HP, Iona and Oracle, Symantec's Internet Tools business unit is regarded as the leading provider of Java development solutions for web-enabling enterprise organizations. According to PC Data, the business unit has grown its share of the Java market from 33 percent to 56 percent in the past year, ahead of companies such as Microsoft, IBM, Inprise, and Sun.
"We have the best technology in a fast growing market," said Symantec president and CEO, John W. Thompson. "Creating an independent company will put the spotlight on our expertise and capability as an Internet company. The new company will be able to focus more clearly on the needs of customers in this arena, compete more effectively and move faster to take advantage of opportunities as they arise. This is great news for employees, customers and shareholders."
Thompson added that spinning out the Internet Tools business unit will enable Symantec to leverage its core competencies to build security and connectivity related solutions for customers taking advantage of the power of the Internet.
"Our Java development solutions are purchased by enterprise developers to Web-enable legacy systems, business systems and create e-commerce solutions," Thompson said. "Our other products are purchased by professionals who have responsibility for keeping networks secure and users productive. By setting up two separate companies we are able to focus very clearly on the needs of these two very different buying groups."
Mansour Safai, vice president of the Internet Tools business unit added: "With the new company, Symantec intends to leverage its award-winning web technologies to grow its presence in the enterprise market by helping corporations integrate the web within their existing business systems and migrate to a new generation of web-based applications in an easy and cost-effective way."
The new Symantec Internet solutions company is expected to be formed within the next three to nine months. Although Symantec will initially be the sole stakeholder, the company expects additional third party investors. Approximately 120 employees in development, marketing, sales and administrative functions will transfer from the Internet Tools business unit and additional hiring is expected to begin shortly.
Symantec is the world leader in utility software for business and personal computing. Symantec products and solutions help make users productive and keep their computers safe and reliable anywhere and anytime. Symantec offers a broad range of solutions and is acclaimed as a leader in both customer satisfaction and product brand recognition. Symantec is traded on Nasdaq under the symbol SYMC. More information on the company and its products can be obtained at www.symantec.com.
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This press release contains forward-looking statements. There are certain important factors that could cause Symantec's future development efforts and organizational plans to differ materially from those anticipated by some of the statements made above. Among these are the anticipated availability of investment capital from independent investors, the anticipation of the growth of certain market segments, the positioning of Symantec's products in those segments, the competitive environment in the software industry, dependence on other products, changes to operating systems and product strategy by vendors of operating systems, and the importance of new Symantec products. Additional information concerning those and other factors is contained in the "Risk Factors" section of the company's annual report on Form 10-K for the fiscal year ended April 3,1998 and in the company's quarterly report Form 10-Q for the third fiscal quarter ended January 1, 1999.