Symantec Plans to Establish Internet Tools Business
Unit as Independent Internet Technology Company
Move will increase focus on customers' need for
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
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
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
"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
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.
NOTE TO EDITORS: If you would like additional information on Symantec
Corporation and its products, view the Symantec Press Center at
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.
Brands and products referenced herein are the trademarks or registered trademarks
of their respective holders. All prices noted are in US dollars and are valid only in
the United States.
* source: PC Data April report