EXHIBIT 99.1
EMC CORPORATION ANNOUNCES
RECORD AND DISTRIBUTION DATES FOR
DISTRIBUTION OF MCDATA CLASS A COMMON STOCK
HOPKINTON, Mass. - January 12, 2001 - EMC Corporation (NYSE: EMC) today
announced that it has declared a stock dividend of all of the shares of
Class A common stock of McDATA Corporation (Nasdaq National Market: MCDT)
owned by EMC. The dividend will be distributed on February 7, 2001, to EMC
stockholders of record as of 5:00 p.m. Eastern time on January 24, 2001.
EMC currently owns 81 million shares of McDATA Class A common stock, which
represents approximately 74 percent of the total outstanding common stock
of McDATA.
The Dividend Distribution
The McDATA Class A common stock will be distributed to EMC
stockholders in the amount of approximately 0.0369 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). The final ratio will be the ratio of the number of shares of McDATA
Class A common stock owned by EMC to the actual number of shares of EMC
common stock outstanding on January 24, 2001, the record date. As of
December 31, 2000, the close of EMC's 2000 fiscal year, EMC had
approximately 2,195,000,000 shares outstanding.
Ownership of the McDATA Class A common stock received by EMC
stockholders will be registered in book-entry form. Each EMC stockholder
will receive a stock distribution statement from the distribution agent.
The statement will indicate the number of full shares of McDATA Class A
common stock that have been credited to that EMC stockholder. 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.On August 9, 2000, McDATA completed the initial public offering of
its Class B common stock, which now is listed on the Nasdaq National Market
under the symbol "MCDT".
McDATA was acquired by EMC in 1995 and was established as an
independent entity in 1997. In 1999 EMC introduced its Connectrix family of
SAN (storage area network) connectivity solutions, designed and
manufactured by McDATA.
Further Information on Distribution
After January 24, 2001, the record date, an information
statement will be mailed to EMC stockholders of record as of 5:00 p.m.
Eastern time on the record date. The information statement will include 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 share 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 http://www.EMC.com.
McDATA Corporation
McDATA (Nasdaq:MCDT) is the leader in enterprise open network
storage and provides highly available, scalable and centrally managed
solutions 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 also extensively pre-tests SAN 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.
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.
