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Technology Stocks : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: AlienTech who wrote (4077)	1/22/1999 9:42:00 PM
From: AlienTech	Respond to of 6021

Clinton Asks Congress for $2.85 Bln to Prevent Terror (Update2) Clinton Asks Congress for $2.85 Bln to Prevent Terror (Update2) (Adds Network Associates shares up.) Washington, Jan. 22 (Bloomberg) -- President Bill Clinton asked Congress for $2.85 billion in fiscal year 2000 to increase the ability of the U.S. military and civil defense officials to prevent attacks by terrorists using computers as well as biological and chemical weapons. ''We're already seeing the first wave of deliberate cyber- attacks,'' Clinton told an audience at the National Academy of Sciences. ''The potential for harm is clear.'' Companies such as Network Associates Inc., based in Santa Clara, California, and Rockville, Maryland-based Axent Technologies Inc., which specialize in computer security software, among others, could benefit from new government business if legislators approve Clinton's plan. ''This could only be a win for us,'' said Marvin Dickerson, senior product marketing manager at Network Associates, a company that's been working on federal government computer security projects for the last 15 years. ''The folks we already do business with stand to get a lot more money to spend.'' Shares in Network Associates rose 2 1/4 to 49 5/8 after Clinton outlined his proposal. The No. 1 maker of security software also was reiterated a ''buy'' by analysts Paul J. Dravis at NationsBanc Montgomery Securities and by Bruce Smith at Jefferies & Co. Clinton said he also wants to increase funding for vaccine research and a national system that will enable public health officials to be more effective in minimizing damage from possible biological and chemical weapons attacks and in coordinating responses around the country. Fighting Hackers ''A small band of terrorists could inflict tremendous harm,'' Clinton said. ''We have to be ready that such a group could obtain biological weapons.'' Clinton also seeks money to help the National Domestic Preparedness Office develop rapid-response programs for 120 U.S. cities and metropolitan areas, and he wants to hire scores of information technology experts to design new ways to protect the computer systems of government agencies from vandals and hackers. ''The new initiatives will take us to the next step'' in fighting the new threats, Clinton said. Network Associates in December helped MCI WorldCom Inc. fight a computer virus attack. Axent earlier this month bought closely held Internet Tools Inc., a maker of software that can prevent Internet break-ins, for $25.3 million; officials there were not immediately available for comment on the Clinton administration's new spending proposal. Axent's shares fell 3/16 to 36 5/16. Clinton mentioned his plans to meet the challenges of terrorist threats in the 21st Century during Tuesday's State of the Union speech. ''We must work to keep terrorists from disrupting computer networks,'' he said to a joint session of Congress and a national television audience. ''We must work to prepare local communities for biological and chemical emergencies, to support research into vaccines and treatments.'' Saddam Hussein Clinton, who is trying to isolate and topple Iraq's President Saddam Hussein for his refusal to stop developing his arsenal of chemical and biological weapons, will ask Congress for a total of $12 billion more for the Defense Department next year. Pentagon officials want to begin buying new weapons systems and to give higher pay and pensions to U.S. military personnel so they won't leave the armed forces. That request is part of a total increase of $110 billion that Clinton wants for the U.S. armed forces during the next six years. Clinton administration officials haven't said how they plan to pay for the new defense spending. About $2.5 billion of the cost could be covered by closing U.S. military bases considered obsolete, said Robert Bell, a member of the National Security Council. Base Closings Proposed Office of Management and Budget documents suggest that base closings proposed by the Clinton administration would cost the government $4.7 billion through 2006 while the savings would total about $6.5 billion through 2011. Lawmakers on both sides of the aisle in Congress have opposed the Clinton administration's efforts to cut defense costs through base closings and are likely to do so again this year. U.S. military bases are the largest employers in some congressional districts and even some states. Few lawmakers want to be blamed for the unemployment caused by a base closing. Since 1988, 95 bases have been closed under a special bipartisan procedure set up by Congress. The last round of closings was in 1995. Congress in June 1997 rejected the Pentagon's request for a new round starting in 1999 and 2001. The Pentagon tried again in November 1997, recommending more base closures in 2001 and 2005. That request was also denied. About 1.4 million Americans are on active duty, with about 250,000 overseas in the Persian Gulf, Korea, and Bosnia. Others are in Central America, helping in the aftermath of natural disasters.