1 December 1997

    Date: Mon, 1 Dec 1997 18:09:27 -0500
    To: cypherpunks@algebra.com
    From: Vin McLellan <vin@shore.net>
    Subject: PGP Inc Sold for $35M - News Flash

    Network Associates Acquires Pretty Good Privacy (PGP)

    04:46 p.m Dec 01, 1997 Eastern Standard Time

    SANTA CLARA, Calif., Dec. 1 /PRNewswire/ -- Network Associates, Inc.
    (Nasdaq: NETA, commencing Dec. 2), formerly McAfee Associates
    (Nasdaq: MCAF), announced today that it has a signed a definitive
    agreement to acquire privately-held Pretty Good Privacy, Inc. (PGP).
    The PGP acquisition extends Network Associates' network security and
    management software products with the leading applied cryptographic
    security solutions for protecting corporate assets and enabling
    secure electronic communication.

    According to an Ernst and Young study, top threats to network
    security include virus attack, sabotage from inside the firewall and
    sabotage from outside the firewall. The combination of PGP and
    Network Associates unites leaders in addressing these corporate
    security threats. Network Associates' McAfee anti-virus security
    software is used by over 25 million users and more than 80% of the
    Fortune 500. With more than four million users in 50 countries, PGP
    is the worldwide de facto standard for Internet email and file
    encryption.

    "The synergy across our product lines is phenomenal," said Bill
    Larson, chairman and CEO of Network Associates. "We will now be able
    to provide an integrated software solution for securing both
    corporate networks and enterprise data."

    "There is a pressing need for comprehensive, integrated security
    solutions," said Phil Dunkelberger, general manager of Network
    Associates' Total Network Security Division, (formerly president and
    CEO of PGP.) "The combination of resources and talent of the
    respective companies will provide customers with a premier
    enterprise-scale security solution."

    Network Associates leads the way in providing large corporate
    customers with integrated network security and management suites.
    Network Associates' Total Virus Defense Suite incorporates client,
    server and gateway protection against computer viruses, and is a
    leading offering in its class. The PGP encryption and management
    products, including the PGP Business Security Suite, will be the
    cornerstone for a complementary suite offered by Network Associates
    called the Total Network Security Suite. By combining Network
    Associates' intrusion and virus detection products with Business
    Security Suite's desktop encryption software, and key server and
    policy management tools, the Total Network Security Suite will
    address, in a single solution, the needs of network administrators
    and corporate security officers.

    PGP has long been a pioneer in the security industry, contributing
    significantly to many of the principles that have driven the
    industry. Network Associates will continue to support the guiding
    principles that have made PGP a successful technology. These
    principles include a commitment to strong encryption and open
    standards. Network Associates will build on the progress made with
    the Internet Engineering Task Force, including RFC2015 and the Open
    PGP working group, to develop standards for security designed to
    unify industry practice.

    The acquisition, which is expected to close on or about December 15,
    1997, is subject to PGP stockholder approval and other customary
    closing conditions. Members of PGP's board of directors and
    management, and certain other major PGP stockholders have agreed
    separately with Network Associates to vote their PGP shares in favor
    of the acquisition. The aggregate consideration payable in the
    acquisition is approximately $36 million (payable at closing in cash
    and the assumption of certain liabilities) and warrants to acquire a
    specified number of shares of Network Associates common stock. The
    acquisition will be accounted for under the purchase method of
    accounting. In accordance with generally accepted accounting
    principle, Network Associates expects to incur a significant charge
    to earnings for the Dec. 31, 1997 quarter related to the purchase of
    in-process research and development.

    With headquarters in Santa Clara, Calif., Network Associates, Inc.,
    formerly McAfee Associates, is a leading supplier of enterprise
    network security and management solutions. Network Associates'
    product offering includes four individual software suites, Total
    Virus Defense, Total Network Security, Total Network Visibility and
    Total ServiceDesk, which can be centrally managed from within the
    Network Associates' NetTools unified management environment. For
    more information, Network Associates can be reached at 408-988-3832
    or on the Web at http://www.networkassociate.com.

    This news release contains forward-looking statements within the
    meaning of Section 27A of the Securities Act of 1933, as amended,
    and Section 21E of the Securities Exchange Act of 1934, as amended.
    Because such statements apply to future events, they are subject to
    risks and uncertainties that could cause the actual results to
    differ materially, including without limitation, integration risks
    related to the proposed transaction and the risk that the proposed
    transaction will not be consummated. Important factors which could
    cause actual results to differ materially are described in Network
    Associates' reports on Form 10-K and 10-Q filed with the Securities
    and Exchange Commission. SOURCE Network Associates, Inc.

          Vin McLellan + The Privacy Guild + <vin@shore.net>
      53 Nichols St., Chelsea, MA 02150 USA <617> 884-5548
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