Contacts: Bob Gordon Robert Grieves
CA Burson-Marsteller for CA
+1-631-342-2391 +1-212-614-4388
[email protected] robert [email protected]
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Watch the Press Conference (RealVideo)
Questions regarding today's announcement can be sent by email to: [email protected]
COMPUTER ASSOCIATES APPOINTS SANJAY KUMAR CEO; CHARLES B. WANG CONTINUES AS
CHAIRMAN, FOCUSING ON NEW BUSINESS INITIATIVES
ISLANDIA, N.Y., August 7, 2000 - Computer Associates International, Inc.
(NYSE: CA) today announced that current President and Chief Operating Officer
Sanjay Kumar has been named President and Chief Executive Officer, and charged
with focusing on CA's core businesses. Charles B. Wang, CA's founder and most
recently Chief Executive Officer, will continue as Chairman, and devote his
energies to new ventures that will unlock tremendous value for shareholders,
clients, strategic partners and employees.
This announcement accompanies a general corporate realignment, expected to
be completed today, that will allow the company to better focus on its core
businesses, support stronger growth markets, enhance client service, and boost
efficiency and dedication to quality throughout the organization.
"This realignment marks the logical transition from the founder phase of CA
to the next level of corporate activity, which is more focused on enhancing
shareholder value and is a broader implementation of our vision," said Charles
Wang. "We will seek to balance strong revenues from our core businesses with
increased value from new ventures that we will launch into the rapidly-evolving
technology industry."
CA will maintain its commitment to being a worldwide leader in eBusiness
software. It will also intensify its focus on its three fastest-growing product
areas: security and storage management; network, event and performance
management; and application development and business intelligence. Within CA's
application development and business intelligence area are Jasmine ii and
Neugents, the company's aggressive new solutions that aim to position CA as
prominently in the eBusiness world as it has been in enterprise computing.
CA will initially focus on delivering greater shareholder value by spinning
off technology that would thrive and flourish on an independent basis while
allowing CA's core business to continue to grow. As the first step in this
strategy, CA today announced the formation of iCan-ASP, Inc. to service the
application service provider (ASP) infrastructure marketplace. The ASP
marketplace is large and growing rapidly, and iCan-ASP offers new and innovative
technologies for providing applications through the Internet, wireless and
broadband communications. CA has retained Credit Suisse First Boston and Morgan
Stanley Dean Witter to advise on these activities.
Nancy Li, Chief Technology Officer of CA, will become iCan-ASP's CEO. Nancy
Li's management team will include Doug Robinson, CFO; Mike Her, Research and
Development; George Fischer, Sales and Marketing; and Ron Nunn, Business
Operations.
CA plans to ultimately spin off its desktop accounting business, ACCPAC,
and other businesses over time.
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"Focusing on our fastest-growing businesses is part of CA's continuous
evolution in a dynamic marketplace," said Sanjay Kumar. "This announcement
reflects our emphasis on driving CA to be more efficient and customer focused,
and to heighten awareness of CA's core strengths and innovations. As the dynamic
nature of the technology industry creates ever increasing opportunities for
growth, we are committed to leveraging these opportunities to create value for
shareholders and exciting new opportunities for our employees."
About Computer Associates
Computer Associates International, Inc. (NYSE: CA), the world's leading
business software company, delivers the end-to-end infrastructure to enable
eBusiness through innovative technology, services and education. CA has 20,000
employees worldwide and has revenue in excess of $6 billion for the fiscal year
ended March 31, 2000. For more information, visit www.ca.com.
