Hopkinton, - November 09, 2000 -
EMC Corporation (NYSE:EMC), the world leader in information storage, and McDATA Corporation (Nasdaq National Market: MCDT) today announced that the U.S. Internal Revenue Service has issued a private letter ruling stating that EMC's proposed distribution to EMC stockholders of all of its shares of McDATA Class A common stock would qualify as tax-free for U.S. federal income tax purposes, except to the extent that cash is received instead of fractional shares.
The proposed distribution, in which EMC intends to distribute all of its shares of McDATA Class A common stock to EMC stockholders on a pro rata basis, is anticipated to occur in 2001, no later than February 8. As previously announced, EMC is not obligated to complete this distribution and is not bound by the anticipated timing. The distribution of McDATA shares by EMC would mark McDATA's final step toward becoming a completely independent company.
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 connectivity solutions, designed and manufactured by McDATA.
McDATA provides highly available, scalable and centrally managed SAN solutions that address enterprise-wide storage problems. Leading the market with industry-defining director-class switches, McDATA's end-to-end SAN solutions improve the reliability and availability of data, greatly simplifying SAN management and reducing the total cost of ownership. These extensively pre-tested SAN solutions 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. For more information on McDATA, visit its web site at www.mcdata.com.
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 www.EMC.com.
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