SUBSTITUTE FOR BW205 (MCAFEE).

SANTA CLARA, Calif.--(BUSINESS WIRE)--Aug. 19, 1996--McAfee (Nasdaq: MCAF) today extended its leadership in network security and management with the introduction of Secure-1, the world's first desktop security suite to integrate anti-virus and encryption. McAfee will market Secure-1 to its installed base of nearly 100,000 network security administrators, who collectively manage over 25,000,000 computer workstations.

While firewalls focus on denying network access to external intruders, encryption is the most effective solution for securing data from all internal and external threats. A 1996 InfoSecurity News/Yankee Group survey illustrates this point, as evidenced by the fact that 44% of survey respondents reported at least one internal network security breach in the last 12 months. Only 14% of security breaches originated outside the network. Encryption insures information privacy and complements firewall defenses by providing bullet-proof protection against data theft.

"Encryption is absolutely essential to network security," said Bill Larson, McAfee president, chairman and CEO. "With the introduction of Secure-1, McAfee will offer one of the industry's most advanced and easily managed encryption solutions for heterogeneous network environments."

"One of the biggest challenges facing network users is the lack of information privacy across corporate intranets and the public Internet," said Dan Freedman, president of FSA. "Our encryption technology protects information privacy by providing transparent and secure communications across all TCP/IP networks. With the backing of McAfee, we can now accelerate the development and marketing of our unique technology."

McAfee Introduces Secure-1

The Secure-1 suite, which supports Microsoft and Unix operating systems, consists of three integrated modules. The modules include McAfee's new NetCrypto, which provides transparent peer to peer encryption of data, applications and electronic mail; McAfee VirusScan for comprehensive anti-virus detection and removal; and McAfee's new WebCrypto, a desktop application for creating encrypted self extracting files that can be sent via email or the Internet to anyone, including users not equipped with either Secure-1 or WebCrypto.

Secure-1's NetCrypto module is based upon the CipherLink technology being acquired by McAfee this month from FSA Corporation of Calgary, Alberta. CipherLink's award-winning technology provides a framework for several advanced security applications, including encryption, user authentication, and access control.

Secure-1's NetCrypto Overcomes Limitations of Traditional Encryption Implementations

NetCrypto overcomes the shortcomings of traditional encryption implementations, which require application modification, tedious management of encryption keys, and costly end-user training. NetCrypto addresses these limitations by providing transparent encryption without application modification or end-user intervention; open support for most encryption methodologies including DES, Triple DES, PC1, Blowfish, RSA and SSL; and support for several authentication standards including Kerberos, Fortezza, and Nortel's Entrust.

Unlike traditional encryption methodologies which provide limited operating system support and require changes to the operating system, NetCrypto does not require changes to the operating system. NetCrypto further supports virtually all major 16 and 32-bit operating systems. As an open framework for advanced security applications, NetCrypto's extensible architecture allows network security administrators to easily incorporate future encryption and authentication methodologies as new technologies become available.

Secure-1's New WebCrypto Creates Self-Extracting Encrypted Files

While NetCrypto provides information privacy for network users, WebCrypto provides information privacy to standalone Windows 3.x and Windows 95 desktop computer users. WebCrypto features easy to use yet powerful encryption capabilities, including support for 160-bit Blowfish and 40-bit PC1 encryption algorithms. To facilitate ease of use, WebCrypto creates self-extracting encrypted files that can be emailed to any Windows computer user, including users without WebCrypto. WebCrypto utilizes technology developed by McAfee.

Acquisition Terms

Under the terms of a definitive acquisition agreement, McAfee has agreed to acquire privately held FSA for 356,000 shares of McAfee common stock. The acquisition is intended to be accounted for as a pooling of interests and is expected to be accretive to McAfee's third quarter earnings. The transaction is subject to certain conditions and is expected to be completed this month.

FSA's employees, including Dan Freedman, founder and president of FSA, are expected to continue with McAfee. Upon completion of the transaction, Dan Freedman will become a member of McAfee's executive staff as vice president of security products, where he will manage McAfee's growing family of network security products. McAfee expects to maintain FSA's offices in Calgary.

Pricing and Availability

The McAfee Secure-1 suite, which is scheduled to begin shipping September 30, 1996, is priced at $125.00 for a single user and site license priced at $100 per node for 1000 users. Registered customers of McAfee's VirusScan can upgrade to Secure-1 at a 50% discount until September 23, 1996.

NetCrypto, WebCrypto and VirusScan will also be available separately.

NetCrypto is expected to ship September 30 and is priced at $100 for a single user and site license priced at $80 per node for 1000 users. WebCrypto is scheduled to ship August 30 and carries a suggested list price of $40.00 and estimated street price of $29.00. VirusScan carries a suggested list price of $65.00 and an estimated street price of $49.00. VirusScan is now shipping, and supports DOS, Windows 3.x, Windows 95, Windows NT, Sun Solaris, and the Macintosh.

Statements in this press release regarding future operating results and product availability are forward looking statements that involve risks and uncertainties, including market acceptance of new products, timely execution of product release plans, competition, integration of FSA, and other risks that are described in the Company's SEC filings, including the most recent Form 10-K and Form 10-Q.

Founded in 1989, Calgary-based FSA Corporation is a leading supplier of corporate security control and audit tools. The company's products have won industry recognition for their advanced technology, including a nomination for Best of Show at the April, 1996 Networld+Interop, and a 1996 Reader's Choice nomination from ENT Magazine. FSA can be reached by phone at 403/264-4822. FSA's Web address is http://www.fsa.ca.

Founded in 1989, McAfee is a leading worldwide vendor of Network Security and Management products for enterprise networks. The Company is also a leader in Internet and Web-based electronic software distribution. McAfee is headquartered in Santa Clara, California and can be reached by phone at 408/988-3832 or by fax at 408/970-9727. McAfee's Web address is http://www.mcafee.com. -0-

Note to Editors: All trademarks are the properties of their respective holders.

CONTACT: McAfee

Tom Clare, 408/653-3118

or

Dovetail Public Relations 

Mark Coker, 408/395-3600

or

FSA Corporation

Benjamin Freedman, 403/264-4822