EMC Corporation and McDATA Corporation Announce 'When Issued' Trading Market
for McDATA Class A Common Stock
Business/Technolgy Editors
HOPKINTON, Mass. and BLOOMFIELD, Colo.--(BUSINESS WIRE)--Feb. 1,
2001--EMC Corporation (NYSE: EMC) and McDATA Corporation (Nasdaq:
MCDT) today announced that "when issued" trading in shares of Class A
common stock of McDATA Corporation will commence on the Nasdaq
National Market on Monday, February 5, 2001. McDATA has applied to the
Nasdaq National Market to have the "when-issued" McDATA Class A common
stock trade under the symbol "MCDAV."
As previously announced, after the close of the market on February
7, 2001, EMC will distribute 81 million shares of McDATA Class A
common stock, which represents approximately 74 percent of the total
outstanding common stock of McDATA, to EMC stockholders of record as
of 5:00 p.m. Eastern time on January 24, 2001. Owners of EMC common
stock on the record date may trade in McDATA Class A common stock on a
"when-issued" trading basis. Trades effected in the "when-issued"
market will be settled with shares of McDATA Class A common stock
issued in EMC's distribution.
The Distribution
The McDATA Class A common stock will be distributed to EMC
stockholders in the amount of approximately 0.0368069 of a share of
McDATA Class A common stock for each share of EMC common stock
(approximately 36 shares of McDATA Class A common stock for each 1,000
shares of EMC common stock). Each EMC stockholder also will receive a
cash payment for any fractional shares of McDATA Class A common stock.
As previously announced, EMC has received a ruling from the
Internal Revenue Service that the distribution to EMC stockholders of
the McDATA Class A common stock will be tax free to EMC stockholders
for U.S. federal income tax purposes. Cash received in lieu of
fractional shares will be taxable.
Further Information on Distribution
An information statement has been mailed to EMC stockholders of
record as of 5:00 p.m. Eastern time on January 24, 2001, the record
date. The information statement includes the final ratio of shares of
McDATA Class A common stock to be distributed for each share of EMC
common stock, as well as information as to how to calculate the cost
basis of such shares. McDATA has filed an application to list the
Class A common stock on the Nasdaq National Market under the symbol
"MCDTA."
EMC Corporation
EMC Corporation (NYSE: EMC) is the world leader in information
storage systems, software, networks and services, providing the
information infrastructure for a connected world. Information about
EMC's products and services can be found at emc.com.
McDATA Corporation
McDATA (Nasdaq: MCDT) is the leader in open storage networking
solutions and provides highly available, scalable and centrally
managed storage area networks (SANs) that address enterprise-wide
storage problems. McDATA's enterprise-to-edge SAN solutions improve
the reliability and availability of data to simplify SAN management
and reduce the total cost of ownership. McDATA extensively pre-tests
its solutions to provide IT organizations with the comprehensive
tools, methodologies and support essential to robust SAN
implementation. McDATA distributes its products through its OEMs,
network of resellers and Elite Solution Partners. McDATA and the
McDATA logo are registered trademarks of McDATA Corporation.
EMC2 and EMC are registered trademarks of EMC Corporation. Other
trademarks are the property of their respective owners.
This release contains "forward-looking statements" as defined
under the Federal Securities Laws. Actual results could differ
materially from those projected in the forward-looking statements as a
result of certain risk factors, including but not limited to: (i)
component quality and availability; (ii) delays in the development of
new technology and the transition to new products; (iii) competitive
factors, including but not limited to pricing pressures, in the
computer storage and server markets; (iv) the relative and varying
rates of product price and component cost declines; (v) economic
trends in various geographic markets and fluctuating currency exchange
rates; (vi) the ability to attract and retain highly qualified
employees; (vii) deterioration or termination of the agreements with
certain of the Company's indirect channels; (viii) the uneven pattern
of quarterly sales; (ix) risks associated with strategic investments
and acquisitions; and (x) other one-time events and other important
factors disclosed previously and from time to time in EMC's filings
with the U.S. Securities and Exchange Commission.
--30--af/bos*
CONTACT: EMC Corporation
Mark Fredrickson
(508) 293-7137
fredrickson_mark@emc.com
or
McDATA Corporation
Lenny Parrnelli
(888) 737-1990
investor_relations@McDATA.com
KEYWORD: MASSACHUSETTS COLORADO
INDUSTRY KEYWORD: BANKING COMPUTERS/ELECTRONICS INTERNET
NETWORKING SOFTWARE
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