Exhibit 99
CONTACT: Dana Buchbinder
(508) 293-6357
FOR IMMEDIATE RELEASE [email protected]
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
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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
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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.
