<PAGE> 1
PROSPECTUS SUPPLEMENT NO. 11 FILED PURSUANT TO RULE 424(b)(3)
TO PROSPECTUS DATED MAY 6, 1998 REGISTRATION NO. 333-51897
$885,500,000
NETWORKS ASSOCIATES, INC. ("NETWORK ASSOCIATES")
ZERO COUPON CONVERTIBLE SUBORDINATED DEBENTURES DUE 2018
This Prospectus Supplement relates to the resale by the holders (the
"Selling Securityholders") of Zero Coupon Convertible Subordinated Debentures
due 2018 (the "Debentures") of Network Associates and the shares of our Common
Stock, par value of $.001 per share (the "Common Stock"), issuable upon the
conversion of the Debentures (the "Conversion Shares").
You should read this Prospectus Supplement in conjunction with the
Prospectus dated May 6, 1998, which was delivered with this Prospectus
Supplement. This Prospectus Supplement No. 11 amends and restates all earlier
Prospectus Supplements. All capitalized terms used herein but not defined in the
Prospectus Supplement shall have the meanings given them in the Prospectus.
The following table sets forth information as of the date hereof
concerning beneficial ownership of the Debentures of the Selling Securityholders
listed below. All information concerning beneficial ownership has been furnished
by the Selling Securityholders.
<TABLE>
<CAPTION>
Principal Amount Percentage of Number of Percentage of
of Notes Notes Conversion Shares Common Stock
Name That May Be Sold Outstanding That May BeSold(1) Outstanding(2)
---- ---------------- ----------- ------------------ --------------
<S> <C> <C> <C> <C>
Allstate Insurance Company $ 4,500,000 * 38,421 *
Argent Classic Convertible $10,000,000 1.1% 85,380 *
Arbitrage Fund (Bermuda)
L.P.
Associated Electric & Gas $ 2,000,000 * 17,076 *
Insurance Services Limited
Banc of America Securities, $ 140,000 * 1,195 *
LLC
Bankers Trust Trustee for $ 5,300,000 * 45,251 *
Chrysler Corp. Emp. #1
Pension Plan dated 4/1/89
Boston College $ 205,000 * 1,750 *
BS Debt Income Fund - $ 20,000 * 170 *
Class A
BT Alex. Brown $ 8,500,000 * 72,573 *
Incorporated
BZW Securities Limited $17,500,000 2% 149,415 *
Calamos Convertible Fund $ 2,400,000 * 20,491 *
California Public $14,500,000 1.6% 123,801 *
Employees' Retirement
System
</TABLE>
<PAGE> 2
<TABLE>
<CAPTION>
Principal Amount Percentage of Number of Percentage of
of Notes Notes Conversion Shares Common Stock
Name That May Be Sold Outstanding That May Be Sold(1) Outstanding(2)
---- ---------------- ----------- ------------------- --------------
<S> <C> <C> <C> <C>
Champion International $ 2,100,000 * 17,929 *
Corporation Master
Retirement Trust
Chase Manhattan NA $ 9,030,000 1% 77,098 *
Trustee for IBM Retirement
Plan
Chrysler Corporation $ 5,775,000 * 49,306 *
Master Retirement Trust
Credit Suisse First Boston $ 3,000,000 * 25,614 *
Corporation
Delta Air Lines Master $ 3,830,000 * 32,700 *
Trust
Deutsche Bank Securities $25,040,000 2.8% 213,791 *
Inc.
Donaldson Lufkin & $ 3,550,000 * 30,309 *
Jenrette Securities Corp.
The Dow Chemical $ 3,600,000 * 30,736 *
Company Employees'
Retirement Plan
Fiduciary Trust Co. $ 1,000,000 * 8,538 *
International
The Fondren Foundation $ 140,000 * 1,195 *
Franklin and Marshall $ 410,000 * 3,500 *
College
General Motors Employees $27,710,000 3.1% 236,587 *
Domestic Group Pension
Trust
General Motors Foundation $ 1,160,000 * 9,904 *
Goldman Sachs & Company $ 5,080,000 * 43,373 *
GPZ Trading LLC $ 3,000,000 * 25,614 *
JP Morgan Securities Inc. $ 8,120,000 * 69,328 *
Kettering Medical Center $ 165,000 * 1,408 *
Funded Depreciation
Account
LDG Limited $ 750,000 * 6,403 *
McMahan Securities $ 100,000 * 853 *
Company, L.P.
McMahan Securities $ 220,000 * 1,878 *
Company, L.P.
</TABLE>
<PAGE> 3
<TABLE>
<CAPTION>
Principal Amount Percentage of Number of Percentage of
of Notes Notes Conversion Shares Common Stock
Name That May Be Sold Outstanding That May Be Sold(1) Outstanding(2)
---- ---------------- ----------- ------------------- --------------
<S> <C> <C> <C> <C>
Merrill Lynch Pierce Fenner $18,000,000 2.0% 153,684 *
& Smith Inc.
The Minnesota Mutual Life $ 4,500,000 * 38,421 *
Insurance Company
Molton-Arms School $ 50,000 * 426 *
Pooled Investment Fd
71035
Morgan Stanley Dean $ 5,000,000 * 42,690 *
Witter
Motors Insurance $ 7,280,000 * 62,156 *
Corporation
NationsBanc Montgomery $17,750,000 * 151,549 *
Securities LLC
New Hampshire Retirement $ 1,100,000 * 9,391 *
System
New York Life Insurance $28,000,000 3.1% 239,064 *
Company
New York Life Insurance & $ 8,500,000 * 72,573 *
Annuity Corporation
OCM Convertible Trust $ 9,205,000 1.0% 78,592 *
Parker-Hannifin $ 280,000 * 2,390 *
Corporation
Partner Reinsurance $ 550,000 * 4,695 *
Company Ltd.
Port Authority of Allegheny $ 2,500,000 * 21,345 *
County Retirement and
Disability Allowance Plan
for the Employees
Represented by Local 85 of
the Amalgamated Transit
Union
ProMutual $ 950,000 * 8,111 *
Putnum Balanced $ 500,000 * 4,269 *
Retirement Fund
Putnum Convertible $ 9,500,000 1% 81,111 *
Income-Growth Trust
Putnum Convertible $500,00 * 4,269 *
Opportunities and
Income Trust
</TABLE>
<PAGE> 4
<TABLE>
<CAPTION>
Principal Amount Percentage of Number of Percentage of
of Notes Notes Conversion Shares Common Stock
Name That May Be Sold Outstanding That May Be Sold(1) Outstanding(2)
---- ---------------- ----------- ------------------- --------------
<S> <C> <C> <C> <C>
Putnum Funds Trust - $ 90,000 * 768 *
Putnum High Yield Total
Return Fund
Raytheon Company Master $ 2,865,000 * 24,461 *
Pension Trust
Rhone-Poulene Rorer $ 280,000 * 2,390 *
Pension Plan
RJR Nabisco, Inc. Defined $ 1,500,000 * 12,807 *
Benefit Master Trust
Salomon Smith Barney, Inc. $ 7,000,000 * 59,766 *
SBC Warburg Dillon Read $ 7,000,000 * 59,766 *
Inc.
Societe Generale Securities $ 1,000,000 * 8,538 *
Corp.
SPT $700,00 * 5,976 *
State Employees Retirement $ 2,060,000 * 17,588 *
Plan of the State of
Delaware
State of Connecticut $ 7,465,000 * 63,736 *
Combined Investment
Funds
State Street Bank Custodian $ 2,810,000 * 23,991 *
for GE Pension Trust
Strong Total Return Fund, $ 7,500,000 * 64,035 *
Inc.
Swiss Bank Corporation- $20,000,000 2.2% 170,760 *
London Branch
Toronto Dominion (New $12,500,000 * 106,725 *
York), Inc.
TQA Leverage Fund, L.P. $ 1,500,000 * 12,807 *
TQA Vantage Fund, Ltd. $ 6,000,000 * 51,228 *
TQA Vantage Plus Fund, $ 750,000 * 6,403 *
Ltd.
Unifi, Inc. Profit Sharing $ 335,000 * 2,860 *
Plan and Trust
United Food and $ 900,000 * 7,684 *
Commercial Workers Local
1262 and Employees
Pension Fund
</TABLE>
<PAGE> 5
<TABLE>
<CAPTION>
Principal Amount Percentage of Number of Percentage of
of Notes Notes Conversion Shares Common Stock
Name That May Be Sold Outstanding That May Be Sold(1) Outstanding(2)
---- ---------------- ----------- ------------------- --------------
<S> <C> <C> <C> <C>
Univar Corporation $ 660,000 * 5,635 *
University of Rochester $ 220,000 * 1,878 *
Vanguard Convertible $ 5,330,000 * 45,507 *
Securities Fund, Inc.
Warburg Dillon Read LLC $15,000,000 1.6% 128,070 *
Weyerhauser Convertible $ 5,200,000 * 44,397 *
Arbitrage Fund
</TABLE>
- ------------
* Less than 1%
(1) Assumes conversion of the full amount of Debentures held by such holder at
the adjusted conversion rate of 8.538 shares of Common Stock per $1000
principal amount of Debentures. This conversion rate was adjusted for the
3-for-2 stock split on May 12, 1998, and remains subject to adjustment as
described under "Description of Debentures -- Conversion of Debentures."
Accordingly, the number of shares of Common Stock issuable upon conversion
of the Notes may increase or decrease from time to time. Under the terms of
the Indenture, fractional shares will not be issued upon conversion of the
Notes; cash will be paid in lieu of fractional shares, if any.
(2) Computed in accordance with Rule 13d-3(d)(i) promulgated under the Exchange
Act and based upon 138,878,193 shares of Common Stock outstanding as of
June 15, 1999, treating as outstanding the number of Conversion Shares
shown as being issuable upon the assumed conversion by the named holder of
the full amount of such holder's Debentures but not assuming the conversion
of the Debentures of any other holder.
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INVESTING IN NETWORK ASSOCIATES DEBENTURES INVOLVES RISKS. SEE "RISK FACTORS"
BEGINNING ON PAGE 7 OF THE PROSPECTUS.
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMIS-
SION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.
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The date of this Prospectus Supplement is August 2, 1999.
