Barrack Rodos Announces New Class Period in Suits Against Network Associates, Inc., and Its Officers and Directors Alleging Misrepresentations and Insider Trading.

PHILADELPHIA--(BUSINESS WIRE)--May 18, 1999--

Counsel for Class Plaintiffs, Barrack, Rodos & Bacine, today issued the following:

Class action complaints have been commenced in the United States District Court for the Northern District of California on behalf of all purchasers of the common stock of Network Associates, Inc. (NASDAQ: NETA) ("Network Associates" or the "Company") between January 20, 1998 and April 19, 1999, inclusive (the "Class Period").

The complaints charge Network Associates and certain of its officers and directors with violations of the Securities Exchange Act of 1934.

The complaints allege that during the Class Period, the defendants issued numerous false statements about Network Associates, its financial results and its business prospects, including that the Company was experiencing strong pricing trends, its business was healthy, its outlook had never been better and, as a result, it would earn EPS of $2.12 in 1999.

These false statements caused Network Associates stock to trade at artificially inflated levels of as high as $67 per share in December 1998 and kept it trading at over $30 per share through the end of the Class Period, enabling several executive officers of Network Associates to sell over 852,500 shares of Network Associates stock at artificially inflated prices ranging from $34.33 to $50.88, for almost $33 million.

However, it was only after these stock sales occurred that the defendants revealed that Network Associates' accounting procedures may be improper.

On January 6, 1999, Network Associates revealed that it had received a letter from the Securities and Exchange Commission questioning the Company's accounting practices in the Company's SEC filings made during 1998. Upon this announcement, Network Associates stock price fell from $59-15/16 to $58-3/16 per share on enormous volume of 14.9 million shares.

Then, in stark contrast to the defendants' statements during the Class Period, the defendants admitted that, in connection with the SEC's investigation, Network Associates had determined that: its in-process research and development expenditures were overstated by $45 million in 1997; its amortization expenses were materially understated in 1997; its in-process research and development expenditures were overstated by $169 million in 1998; its amortization expenses were materially understated in 1998; and its amortization expense for 1Q99 would increase to $58 million from planned expense of $22 million.

Plaintiffs seek to recover damages on behalf of all purchasers of Network Associates common stock during the Class Period (the "Class"). Counsel for class plaintiffs is the law firm of Barrack, Rodos & Bacine, which has extensive experience in prosecuting investor class actions involving financial fraud.

Barrack, Rodos & Bacine has prosecuted securities, antitrust and consumer class actions for over 20 years. The firm has offices in Philadelphia, San Diego, New York, Boston and New Jersey and has been designated lead counsel by federal and state courts across the country in large, complex cases. For more information about Barrack, Rodos & Bacine, please visit their website at www.barrack.com.

If you are a member of the Class described above, you may, no later than June 6, 1999, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this case or your rights or interests, please immediately contact:

Maxine S. Goldman

Shareholder Relations Manager

Barrack, Rodos & Bacine, Counsel for Class Plaintiff

3300 Two Commerce Square

2001 Market Street

Philadelphia, PA 19103

800/417-7305 or 215/963-0600

fax number 888/417-7306 or 215/963-0838

e-mail at [e-mail]