McAfee, Inc. Reports Preliminary First Quarter Revenue of $314 million

McAfee, Inc. Reports Preliminary First Quarter Revenue of $314 million

McAfee, Inc. (NYSE: MFE) today announced preliminary unaudited results for the first quarter ended March 31, 2007. These results are preliminary because, as previously announced, McAfee has determined that it will need to restate its historical financial statements to record additional non-cash charges associated with past stock option grants and to reflect the related tax impact for stock-based compensation expense over a 10-year period. McAfee believes this restatement is likely to result in aggregate non-cash charges in the range of $100 million to $150 million. In addition, McAfee expects the restatement to include other adjustments to certain balance sheet and income statement accounts that will affect its previously reported results. Excluding stock-based compensation, the Company expects that any adjustments in the income statement results will be principally timing-related. McAfee intends to file restated financial results and related periodic reports as soon as practicable.

“McAfee had a very strong first quarter with record revenue, excluding divested businesses, of $314 million,” said Dave DeWalt, McAfee’s chief executive officer and president. “The management team has positioned the Company to capitalize on the growing demand for security with an innovative mix of technologies and solutions that meet the needs of our diverse customer base.”

DeWalt continued, “There is opportunity in the fact that the security industry has no single, dominant vendor, while its markets are growing and its products are increasingly critical for customers. We are executing on 2007 initiatives that leverage our security risk management strategy and position us to become the market leader in this vital space.”

All results and guidance reported today are presented without taking into account any adjustments to either current or previously reported results that may be required in connection with the restatement and should be considered preliminary until McAfee files its amended historical financial statements and its Form 10-Q for the first quarter ended March 31, 2007. As indicated above, the restatement also will affect the historical financial metrics provided herein for the first quarter 2007 and 2006 due to adjustments other than for stock-based compensation expense.

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