McAfee, Inc. Reports Record Results for the Second Quarter of 2009

Announces Agreement to Acquire MX Logic, Providing Most Comprehensive
Security-as-a-Service Portfolio

SANTA CLARA, Calif.--(Business Wire)--
McAfee, Inc. (NYSE:MFE) today reported financial results for the second quarter
ended June 30, 2009.

Second Quarter Financial Highlights:

* Revenue reached a record $469 million, an increase of 18 percent
year-over-year and five percent quarter-over-quarter
* Deferred revenue reached a record $1.31 billion, an increase of 20 percent
year-over-year and three percent quarter-over-quarter
* Currency fluctuations had a negative impact of $22 million on revenue
year-over-year with minimal quarter-over-quarter impact. Currency fluctuations
had a negative impact of $45 million on deferred revenue year-over-year and a
positive impact of $29 million on deferred revenue quarter-over-quarter.
* GAAP and non-GAAP earnings per diluted share were $0.18 and $0.60,
respectively
* Non-GAAP earnings per diluted share reached a record $0.60, an increase of 15
percent year-over-year and five percent quarter-over-quarter

Executive Commentary:

"For the second quarter of 2009, we are proud to report quarterly records in
revenue, deferred revenue, non-GAAP operating income, and non-GAAP net income,"
said Dave DeWalt, McAfee's president and chief executive officer. "Our continued
market share gains prove customers and partners choose McAfee for security
leadership."

"With our pending acquisition of MX Logic, McAfee expects to strengthen our
position as an innovative leader in the security Software-as-a-Service segment
with one of the most diverse portfolios in the industry. We expect to bring
customers enhanced cloud based email and Web security with archiving in a
rapidly growing segment," continued DeWalt. "This combination will give
customers greater access to critical messaging SaaS offerings and an expanded
network of partners across the world."

Second Quarter Financial Summary and Operational Metrics:

$ in Millions, except per share and % data Q2 2009 Q2 2008 % Change
Total Net Revenue $468.7 $396.8 18%

GAAP Operating Income $55.9 $54.4 3%
GAAP Net Income $28.7 $47.8 (40%)
GAAP Net Income Per Share (Diluted) $0.18 $0.30 (39%)

Non-GAAP Operating Income* $125.4 $101.8 23%
Non-GAAP Net Income* $94.7 $83.8 13%
Non-GAAP Net Income Per Share* (Diluted) $0.60 $0.52 15%

Deferred Revenue $1,307.6 $1,085.8 20%
Cash & Marketable Securities $886.1 $1,131.3 (22%)

*A complete reconciliation of GAAP to non-GAAP results is set forth in the
attachment to this press release.

Corporate Business:

* Revenue grew 21 percent year-over-year to a record $291 million in the second
quarter of 2009
* In the second quarter of 2009, McAfee closed 424 deals greater than $100,000
in value, including 57 deals greater than $500,000 in value and 28 deals greater
than $1 million in value

Consumer Business:

* Revenue grew 13 percent year-over-year to a record $177 million in the second
quarter of 2009
* In the second quarter of 2009, McAfee signed or extended 24 agreements and
launched 63 new or enhanced online partnerships, bringing the total to over 200
brand name partners worldwide

North America:

* Revenue grew 30 percent year-over-year to a record $265 million in the second
quarter of 2009
* North American revenue accounted for 57 percent of total revenue for the
second quarter of 2009, compared with 51 percent of total revenue for the second
quarter of 2008

International:

* Revenue grew six percent year-over-year to a record $203 million in the second
quarter of 2009
* Foreign currency had a negative impact on revenue by approximately $22 million
year-over-year and with minimal quarter-over-quarter impact
* As reported in U.S. dollars, year-over-year revenue from Europe, the Middle
East and Africa declined two percent, Asia Pacific grew 18 percent, Japan grew
20 percent and Latin America grew 36 percent
* International revenue accounted for 43 percent of total revenue for the second
quarter of 2009, compared with 49 percent of total revenue for the second
quarter of 2008

Key Announcements:

* In June, McAfee completed the acquisition of privately owned Solidcore
Systems, Inc. and can now offer what we believe is the industry`s first
end-to-end compliance solution that includes dynamic whitelisting and
application trust technology, antivirus, antispyware, host intrusion prevention,
policy auditing and firewall technologies
* McAfee announced the availability of McAfee® Family Protection, a new software
program that can protect a child from online dangers, such as viewing
inappropriate content, participating in cyberbullying and engaging in risky
interactions on social networking sites
* The company released McAfee ePolicy Orchestrator® (ePO) 4.5 software to help
secure organizations from a vast and ever-growing threat landscape
* McAfee released Total Protection Service, the industry`s SaaS solution
offering always on guard protection without additional investment in on-premise
infrastructure
* McAfee upgraded its enterprise firewall products with next generation
capabilities that help customers increase network security and lower their
compliance and operational costs in both physical and virtual network
environments
* The company released McAfee Total Protection for Internet Gateways. Customers
can make one purchase to acquire Web, mail and network DLP protection to be
deployed on McAfee appliances, providing advanced threat protection with
acquisition cost savings of 50 percent or more.
* Research firm Gartner, Inc. has placed the company in the leader`s quadrant in
its "Magic Quadrant for Endpoint Protection Platforms" as published on May 4,
2009. In addition, McAfee was named a leader in two reports from Forrester
Research, Inc., "The Forrester Wave: Web Filtering, Q2 2009" and "The Forrester
Wave: Email Filtering, Q2 2009."

Balance Sheet and Cash Flow Summary:

At June 30, 2009, the company reported cash and marketable securities of $886
million, compared with $801 million at the end of the first quarter of 2009.
During the second quarter of 2009, the company paid $32 million in cash for the
acquisition of Solidcore Systems, Inc.

For the six months ended June 30, 2009, the company generated $199 million in
cash flow from operations, compared to $151 million in the same period last
year. Cash flow from operations for the second quarter of 2009 was $53 million,
which includes increased investments in working capital and $20 million for a
litigation settlement and incremental tax payments associated with prior year
tax filings dating back to 1998. Day sales outstanding (DSOs) were 51 days for
the quarter ended June 30, 2009 compared to 46 days for the same quarter last
year.

Deferred revenue reached a record $1.308 billion at the end of the second
quarter of 2009, including a positive foreign currency impact of approximately
$29 million quarter-over-quarter. Approximately 79 percent of revenue during the
second quarter of 2009 came from prior period deferred revenue.

MX Logic Acquisition:

McAfee today announced that it has entered into a definitive agreement to
acquire privately owned MX Logic for $140 million with an additional $30 million
contingent upon achieving certain performance milestones. MX Logic is the
world`s leading independent Software-as-a-Service (SaaS) provider of on-demand
email, Web security and archiving solutions with nearly 40,000 customers and
four million end users.

MX Logic aligns with McAfee`s vision to become a leader in security SaaS by
bringing a proven track record and industry leading technologies that span
businesses, channel partners and distributors. With a highly scalable and
extensible managed services platform, MX Logic brings world class email and Web
defense including archiving and business continuity services that extend
McAfee`s portfolio of cloud based services.

The acquisition is expected to close in the third quarter of 2009. For
additional information, please reference the acquisition landing page at
http://www.mcafee.com/us/about/corporate/mcafee_MX Logic.html.

Financial Outlook:

McAfee expects net revenue in the third quarter of 2009 of $475 million to $495
million.

The company expects third quarter 2009 GAAP net income of $0.25 to $0.29 per
diluted share and non-GAAP net income of $0.58 to $0.62 per diluted share.

This guidance reflects an assumed 28 percent annual GAAP tax rate and a 24
percent annual non-GAAP tax rate for 2009. McAfee expects the impact of the
acquisition of MX Logic to be breakeven to slightly accretive in 2010 on
non-GAAP earnings-per-share and more dilutive to GAAP earnings-per-share. For
the remainder of 2009, we expect the impact of the acquisition to be $0.01 to
$0.02 dilutive to non-GAAP earnings-per-share and more dilutive to GAAP
earnings-per-share. Non-GAAP earnings-per-share will exclude the impact of
amortization of acquired intangibles, stock compensation and other nonrecurring
costs or charges. See the reconciliation of projected GAAP net income per share
to projected non-GAAP net income per share attached to this press release.

Conference Call Information:

* The company will host a conference call today at 1:30 P.M. Pacific, 4:30 P.M.
Eastern to discuss its quarterly results. Participants should call (800)
809-7467 (U.S. toll-free) or (706) 679-4671 (international). The passcode is
13041839.
* Attendees should dial in at least 15 minutes prior to the conference call
* A replay of the call will be available until August 13, by calling (800)
642-1687 (U.S. toll-free) or (706) 645-9291 (international)
* A Web cast of the call may also be found on the Internet through McAfee`s
Investor Relations Web site at http://investor.mcafee.com

Disclosure Statements and Discussion of Non-GAAP Financial Measures:

Management evaluates and makes operating decisions using various performance
measures. In addition to reporting financial results in accordance with GAAP, we
also consider adjusted gross profit, operating income and net income, which we
refer to as "non-GAAP gross profit," "non-GAAP operating income" and "non-GAAP
net income." In calculating non-GAAP gross profit, non-GAAP operating income and
non-GAAP net income, management excludes certain items to facilitate its review
of the comparability of the company's operating performance on a
period-to-period basis because such items are not, in management's review,
related to the company's ongoing operating performance.

Non-GAAP gross profit excludes amortization of purchased technology and
stock-based compensation charges. Non-GAAP net income and non-GAAP operating
income exclude amortization of purchased technology and intangibles, stock-based
compensation charges, acquisition related costs, loss on sale/disposal of assets
and technology, restructuring charges, investigation related and other costs,
provision for income taxes and certain other items.

Management used a 27 percent non-GAAP effective tax rate to calculate non-GAAP
net income in 2008. For 2009, management uses an assumed 24 percent non-GAAP
effective tax rate. Management believes the 24 percent effective tax rate is
reflective of a long-term normalized tax rate under the global McAfee operating
structure.

We present non-GAAP gross profit, non-GAAP operating income and non-GAAP net
income because we consider each to be an important supplemental measure of our
performance. Management uses these non-GAAP financial measures to make
operational and investment decisions, to evaluate the company`s performance, to
forecast and to determine compensation. Further, management utilizes these
performance measures for purposes of comparison with its business plan and
individual operating budgets and allocation of resources. In addition, when
evaluating potential acquisitions, management excludes the items described above
from its consideration of target performance and valuation.

We further believe that these non-GAAP financial measures are useful to
investors in providing greater transparency to the information used by
management in its operational decision making. We believe that calculating
non-GAAP gross profit, non-GAAP operating income and non-GAAP net income also
facilitates a comparison of McAfee`s underlying operating performance with that
of other companies in our industry, which may from time to time use similar
non-GAAP financial measures to supplement their GAAP results. However, non-GAAP
gross profit, non-GAAP operating income and non-GAAP net income have limitations
as analytical tools, and you should not consider these measures in isolation or
as a substitute for GAAP gross profit, operating income and net income or any
other performance measure determined in accordance with GAAP. In the future, we
expect to continue to incur expenses similar to certain of the non-GAAP
adjustments described above and exclusion of these items in the presentation of
our non-GAAP financial measures should not be construed as an inference that all
of these costs are unusual, infrequent or non-recurring. Investors and potential
investors are cautioned that there are material limitations associated with the
use of non-GAAP financial measures as analytical tools. Some of the limitations
in relying on non-GAAP net income are:

* Amortization of purchased technology and intangibles, though not directly
affecting our current cash position, represents the loss in value as the
technology in our industry evolves, is advanced or is replaced over time. The
expense associated with this loss in value is not included in the non-GAAP net
income presentation and therefore does not reflect the full economic effect of
the ongoing cost of maintaining our current technological position in our
competitive industry which is addressed through our research and development
program.
* The company regularly engages in acquisition and integration activities as
part of its ongoing business. Therefore, we expect to continue to experience
acquisition and retention bonuses, direct acquisition costs and integration
costs related to acquisition activity in future periods.
* The company`s income tax expense will ultimately be based on its GAAP taxable
income and actual tax rates in effect, which may differ significantly from the
24 percent rate assumed in our non-GAAP financial measures for 2009 and the 27
percent rate assumed in our non-GAAP financial measures for 2008.
* Other companies, including companies in our industry, may calculate non-GAAP
net income differently than we do, limiting its usefulness as a comparative
tool

In addition, many of the adjustments to our GAAP financial statements result in
the exclusion of items that are recurring and will be reflected in the company`s
financial results for the foreseeable future. The company compensates for these
limitations by providing specific information regarding the GAAP amounts
excluded from the non-GAAP financial measures. The company further compensates
for the limitations of our use of non-GAAP financial measures by presenting
comparable GAAP measures more prominently. The company evaluates the non-GAAP
financial measures together with the most directly comparable GAAP financial
measure.

Investors and potential investors are encouraged to review the reconciliation of
non-GAAP financial measures contained within this press release with our GAAP
gross profit, operating income and net income. For more information, see the
consolidated statements of income and the "Reconciliation of GAAP to Non-GAAP
Financial Measures" contained in this press release.

Forward-Looking Statements:

This release contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. Forward looking statements include statements regarding the preliminary
results for the quarter ended June 30, 2009, guidance on expected results for
the third quarter of 2009, the assumed tax rates for the third quarter and
full-year 2009, expectations regarding the benefits of and closing date for the
pending acquisition of MX Logic and statements about McAfee`s financial
stability, business strategy, business momentum, market position, relationships,
opportunities, and the value of McAfee`s security solutions. Actual results
could vary, perhaps materially, and the expected results may not occur. In
particular, actual results are subject to other risks, including that McAfee may
not achieve its planned revenue realization rates or sales targets, succeed in
its efforts to grow its business or combat effectively the security threats of
the future, build upon its technology leadership, leverage its relationships and
opportunities to the degree expected, or capture market share, notwithstanding
related commitment or related investment. The company may not benefit from its
acquisitions, strategic alliances or partnerships as anticipated, customers may
not respond as favorably as anticipated to the company`s product or technical
support offerings, the company`s product and service offerings may not continue
to interoperate effectively with newly developed operating systems, the company
may experience delays in product development or the release of previously
announced products, the company may experience delayed or lost sales and revenue
as a result of outages in integrated systems on which it is highly dependent,
the company may not satisfactorily anticipate or meet its customers` needs or
expectations, or the industry shift to security suites may not be adopted to the
extent anticipated. Actual results are also subject to a number of other
factors, including customer and distributor demand fluctuations, currency
fluctuations and macro and other economic conditions both in the United States
and internationally including the current credit crisis and adverse global
economic conditions. The Company may experience further declines in the fair
value of its investment securities or realize losses relating to other than
temporary declines in its investment securities given the current credit crisis
and adverse global economic conditions. The forward-looking statements contained
in this release are also subject to other risks and uncertainties, including
those more fully described in McAfee`s filings with the SEC including its
quarterly report on Form 10-Q for the period ended March 31, 2009. McAfee does
not undertake to update any forward looking statements.

About McAfee, Inc.:

McAfee, Inc., headquartered in Santa Clara, California, is the world's largest
dedicated security technology company. McAfee is relentlessly committed to
tackling the world`s toughest security challenges. The company delivers
proactive and proven solutions and services that help secure systems and
networks around the world, allowing users to safely connect to the Internet,
browse and shop the web more securely. Backed by an award-winning research team,
McAfee creates innovative products that empower home users, businesses, the
public sector and service providers by enabling them to prove compliance with
regulations, protect data, prevent disruptions, identify vulnerabilities, and
continuously monitor and improve their security. http://www.mcafee.com

McAfee and/or other noted McAfee related products contained herein are
registered trademarks or trademarks of McAfee, Inc., and/or its affiliates in
the U.S. and/or other countries. McAfee Red in connection with security is
distinctive of McAfee brand products. Any other non-McAfee related products,
registered and/or unregistered trademarks contained herein are only by reference
and are the sole property of their respective owners. © 2009 McAfee, Inc. All
rights reserved.

MCAFEE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)

June 30, December 31,
2009 2008

Assets:
Cash and marketable securities $ 886,079 $ 593,725
Accounts receivable, net 265,986 322,986
Prepaid expenses, income taxes and other current assets 294,878 260,181
Property and equipment, net 121,165 114,435
Deferred taxes 611,574 614,807
Goodwill, intangibles and other long term assets, net 1,531,237 1,551,747
Total assets $ 3,710,919 $ 3,457,881

Liabilities:
Accounts payable $ 68,520 $ 41,529
Accrued liabilities 234,217 298,003
Current debt 100,000 -
Deferred revenue 1,307,573 1,293,110
Accrued taxes and other long term liabilities 62,360 72,751
Total liabilities 1,772,670 1,705,393

Stockholders' Equity:
Common stock 1,853 1,812
Treasury stock (839,609 ) (819,861 )
Additional paid-in capital 2,166,326 2,053,245
Accumulated other comprehensive income (11,173 ) (18,992 )
Retained earnings 620,852 536,284
Total stockholders' equity 1,938,249 1,752,488
Total liabilities and stockholders' equity $ 3,710,919 $ 3,457,881

MCAFEE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(Unaudited)

Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008

Net revenue $ 468,686 $ 396,758 $ 916,395 $ 766,399

Cost of net revenue (1) 96,783 76,376 190,445 152,752
Amortization of purchased technology 18,439 13,357 37,833 26,917
Gross profit 353,464 307,025 688,117 586,730

Operating costs:

Research and development (1) 78,428 61,895 156,611 120,203

Sales and marketing (1) (2) 157,429 131,523 306,060 252,350

General and administrative (1) (2) 41,767 44,823 79,400 83,664

Amortization of intangibles 10,113 5,636 20,108 10,976

Restructuring charges (benefits) 4,145 (2,214 ) 9,205 (2,143 )

Acquisition related costs 3,408 1,635 6,684 3,327

Investigation related and other costs 2,279 266 2,325 1,642

Loss on sale/disposal of assets and technology 19 64 78 67

Legal settlement - 9,000 - 9,000

Total operating costs 297,588 252,628 580,471 479,086

Income from operations 55,876 54,397 107,646 107,644

Interest and other income, net (797 ) 13,040 2,180 28,537

Impairment of marketable securities - (2,570 ) (710 ) (2,570 )

Income before provision for income taxes 55,079 64,867 109,116 133,611

Provision for income taxes 26,426 17,041 27,007 55,616
Net income $ 28,653 $ 47,826 $ 82,109 $ 77,995

Net income per share - basic $ 0.18 $ 0.30 $ 0.53 $ 0.49
Net income per share - diluted $ 0.18 $ 0.30 $ 0.52 $ 0.48

Shares used in per share calculation - basic 155,763 158,770 154,748 159,882
Shares used in per share calculation - diluted 158,336 161,553 157,306 163,367

(1) Stock-based compensation charges are included as follows:
Cost of net revenue $ 1,637 $ 1,026 $ 2,808 $ 1,470
Research and development 6,355 4,445 13,205 8,066
Sales and marketing 16,432 9,218 26,195 13,114
General and administrative 6,656 4,987 12,907 8,902
$ 31,080 $ 19,676 $ 55,115 $ 31,552

(2) In three months ended and six months ended June 30, 2008, we reclassified $2.8M and $5.6M of sales order operation related expenses from general and administrative to sales and marketing expenses to conform with current year presentation.

MCAFEE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)

Six Months Ended
June 30,
2009 2008

Cash flows from operating activities:
Net income $ 82,109 $ 77,995
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 83,083 57,212
Impairment of marketable securities 710 2,570
Restructuring charge (benefit) 1,589 (2,776 )
Deferred income taxes 11,590 18,580
Decrease in fair value of options accounted for as liabilities - (5,483 )
Stock-based compensation expense 49,057 31,333
Excess tax benefits from stock-based awards (8,444 ) (12,464 )
Other non-cash items 2,594 (5,983 )
Changes in assets and liabilities, net of acquisitions:
Accounts receivable 55,237 37,860
Prepaid expenses and other assets (65,868 ) (31,207 )
Accounts payable 18,262 (10,036 )
Accrued taxes and other liabilities (48,053 ) (7,518 )
Deferred revenue 17,541 919
Net cash provided by operating activities 199,407 151,002
Cash flows from investing activities:
Purchase of marketable securities (186,710 ) (231,322 )
Proceeds from sales of marketable securities 14,831 343,390
Proceeds from maturities of marketable securities 44,778 280,174
Acquisitions, net of cash acquired (33,697 ) (55,041 )
Purchase of property and equipment (23,479 ) (21,001 )
Other investing activities 165 (2 )
Net cash (used in) provided by investing activities (184,112 ) 316,198
Cash flows from financing activities:
Proceeds from issuance of common stock under stock option and stock purchase plans 54,302 87,044
Excess tax benefits from stock-based awards 8,444 12,464
Repurchase of common stock (19,748 ) (382,896 )
Bank borrowings 100,000 -
Net cash provided by (used in) financing activities 142,998 (283,388 )
Effect of exchange rate fluctuations on cash 5,091 24,656
Net increase in cash and cash equivalents 163,384 208,468
Cash and cash equivalents at beginning of period 483,302 394,158
Cash and cash equivalents at end of period $ 646,686 $ 602,626

MCAFEE, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
(Unaudited)

Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
Net revenue:
GAAP net revenue $ 468,686 $ 396,758 $ 916,395 $ 766,399

Gross profit:
GAAP gross profit $ 353,464 $ 307,025 $ 688,117 $ 586,730
Stock-based compensation charges (A) 1,637 1,026 2,808 1,491
Amortization of purchased technology (B) 18,439 13,357 37,833 26,917
Non-GAAP gross profit $ 373,540 $ 321,408 $ 728,758 $ 615,138

Operating income:
GAAP operating income $ 55,876 $ 54,397 $ 107,646 $ 107,644
Stock-based compensation charges (A) 31,080 19,676 55,115 31,934
Amortization of purchased technology (B) 18,439 13,357 37,833 26,917
Amortization of intangibles (B) 10,113 5,636 20,108 10,976
Restructuring charges (benefits) (C) 4,145 (2,214 ) 9,205 (2,143 )
Acquisition related costs (D) 3,408 1,635 6,684 3,327
Investigation related and other costs (E) 2,279 266 2,325 1,642
Loss on sale/disposal of assets and technology (F) 19 64 78 67
Legal settlement (G) - 9,000 - 9,000
Change in fair value of stock-based liability awards (H) - - - (5,483 )
Non-GAAP operating income $ 125,359 $ 101,817 $ 238,994 $ 183,881

Net income:
GAAP net income $ 28,653 $ 47,826 $ 82,109 $ 77,995
Stock-based compensation charges (A) 31,080 19,676 55,115 31,934
Amortization of purchased technology (B) 18,439 13,357 37,833 26,917
Amortization of intangibles (B) 10,113 5,636 20,108 10,976
Restructuring charges (benefits) (C) 4,145 (2,214 ) 9,205 (2,143 )
Acquisition related costs (D) 3,408 1,635 6,684 3,327
Investigation related and other costs (E) 2,279 266 2,325 1,642
Loss on sale/disposal of assets and technology (F) 19 64 78 67
Legal settlement (G) - 9,000 - 9,000
Change in fair value of stock-based liability awards (H) - - - (5,483 )
Impairment of marketable securities (I) - 2,570 710 2,570
Provision for income taxes (J) 26,426 17,041 27,007 55,616
Non-GAAP income before provision for income taxes 124,562 114,857 241,174 212,418

Non-GAAP provision for income taxes (K) 29,895 31,011 57,882 57,353
Non-GAAP net income $ 94,667 $ 83,846 $ 183,292 $ 155,065

Net income per share - diluted: *
GAAP net income per share - diluted $ 0.18 $ 0.30 $ 0.52 $ 0.48
Stock-based compensation charges per share (A) 0.20 0.12 0.35 0.20
Other adjustments per share (B)-(K) 0.22 0.10 0.29 0.28
Non-GAAP net income per share - diluted * $ 0.60 $ 0.52 $ 1.17 $ 0.95

Shares used to compute Non-GAAP net income per share - diluted 158,336 161,553 157,306 163,367

* Non-GAAP net income per share is computed independently for each period
presented. The sum of GAAP net income per share and non-GAAP adjustments may not
equal non-GAAP net income per share due to rounding differences.

This presentation includes non-GAAP measures. Our non-GAAP measures are not
meant to be considered in isolation or as a substitute for comparable GAAP
measures, and should be read only in conjunction with our consolidated financial
statements prepared in accordance with GAAP. For a detailed explanation of the
adjustments made to comparable GAAP measures, the reasons why management uses
these measures, the usefulness of these measures and the material limitations of
these measures, see items (A) through (K).

Items (A) through (K) on the "Reconciliation of GAAP to Non-GAAP Financial
Measures" table are listed to the right of certain categories under "Gross
profit," "Operating income," "Net income" and "Net income per share - diluted"
and correspond to the categories explained in further detail below under
paragraphs (A) through (K).

While we currently do not believe a non-GAAP net revenue metric is meaningful,
GAAP net revenue has been provided to enable an understanding of the
relationships between GAAP net revenue and the GAAP and non-GAAP financial
measures included in the table above. As an example, this facilitates non-GAAP
expense to revenue analysis. The non-GAAP financial measures are non-GAAP gross
profit, non-GAAP operating income, non-GAAP net income and non-GAAP net income
per share - diluted, which adjust for the following items: stock-based
compensation charges, amortization of purchased technology and intangibles,
restructuring charges, acquisition related costs, loss on sale/disposal of
assets and technology, investigation related and other costs, change in fair
value of stock-based liability awards, impairment of marketable securities,
income taxes and certain other items. We believe that the presentation of these
non-GAAP financial measures is useful to investors, and such measures are used
by our management, for the reasons associated with each of the adjusting items
as described below:

(A) Stock-based compensation charges consist of charges relating to stock-based
awards issued to employees and outside directors including stock options,
restricted stock awards and units, restricted stock units with performance-based
vesting and our Employee Stock Purchase Plan determined in accordance with SFAS
123R. Because of varying available valuation methodologies, subjective
assumptions and the variety of award types, the Company believes that the
exclusion of stock-based compensation charges allows for more accurate
comparisons of our operating results to our peer companies, and for a more
accurate comparison of our financial results to previous periods. In addition,
the Company believes it is useful to investors to understand the specific impact
of the application of SFAS 123R on our operating results. The amount in 2008
also includes stock-based compensation charges related to the tender offer.

(B) Amortization of purchased technology and intangibles are non-cash charges
that can be impacted by the timing and magnitude of our acquisitions. The
Company considers its operating results without these charges when evaluating
its ongoing performance and/or predicting its earnings trends, and therefore
excludes such charges when presenting non-GAAP financial measures. The Company
believes the assessment of its operations excluding these costs is relevant to
its assessment of internal operations and comparisons to the performance of
other companies in its industry.

(C) Restructuring charges (benefit) include excess facility and asset-related
restructuring charges and severance costs resulting from reductions of personnel
driven by modifications to the Company`s business strategy, such as acquisitions
or divestitures. These costs may vary in size based on the Company`s
restructuring plan. In addition, the Company`s assumptions are continually
evaluated, which may increase or reduce the charges in a specific period. The
Company`s management excludes these costs when evaluating its ongoing
performance and/or predicting its earnings trends, and therefore excludes these
charges when presenting non-GAAP financial measures.

(D) Acquisition related costs include direct costs of the acquisition and
expenses related to acquisition integration activities. Examples of costs
directly related to an acquisition include transactions fees, due diligence
costs, acquisition retention bonuses and severance, fair value adjustments
related to contingent consideration, and amounts or recoveries subject to escrow
provisions. These expenses vary significantly in size and amount and are
disregarded by the Company`s management when evaluating and predicting earnings
trends because these charges are unique to specific acquisitions, and are
therefore excluded by the Company when presenting non-GAAP financial measures.

(E) Investigation related and other costs are charges related to discrete and
unusual events where the Company has incurred significant costs which, in the
Company`s view, are not incurred in the ordinary course of operations. Recent
examples of such charges include legal expenses related to the special committee
investigation into the Company`s past stock option granting practices which was
completed in December 2007. The Company`s management excludes these costs when
evaluating its ongoing performance and/or predicting its earnings trends, and
therefore excludes these charges when presenting non-GAAP financial measures.
Further, the Company believes it is useful to investors to understand the
specific impact of these charges on its operating results.

(F) Loss on sale/disposal of assets and technology relate to the sale or
disposal of assets of the Company. These losses or gains can vary significantly
in size and amount. The Company`s management excludes these losses or gains when
evaluating its ongoing performance and/or predicting its earnings trends, and
therefore excludes these items when presenting non-GAAP financial measures. In
addition, in periods where the Company realizes gains or incurs losses on the
sale of assets and/or technology, the Company believes it is useful to investors
to highlight the specific impact of these amounts on its operating results.

(G) Legal settlement is a settlement related to a patent legal matter. The
Company`s management excludes this charge when evaluating its ongoing
performance and/or predicting earnings trends, and therefore excludes this
amount when presenting non-GAAP financial measures.

(H) Change in fair value of stock-based liability awards constitutes the expense
or benefit associated with the change in fair value of stock-based liability
awards at the end of the each reporting period. The Company`s management
excludes these (benefits) costs when evaluating its ongoing performance and/or
predicting its earnings trends, and therefore excludes these amounts when
presenting non-GAAP financial measures.

(I)Impairment of marketable securities constitutes the "other than temporary"
decline in the fair value of the Company`s available-for-sale securities.The
Company`s management excludes these losses when evaluating its ongoing
performance and/or predicting its earnings trends, and therefore excludes this
loss when presenting non-GAAP financial measures.

(J) Provision for income taxes is our GAAP provision that must be added back to
GAAP net income to reconcile to non-GAAP income before taxes.

(K) Non-GAAP provision for income taxes reflects a 24% non-GAAP effective tax
rate in 2009 and a 27% non-GAAP effective tax rate in 2008 which is used by the
Company`s management to calculate non-GAAP net income. Management believes that
the 24% and 27% effective tax rate in each respective period is reflective of a
long-term normalized tax rate under the global McAfee legal entity and tax
structure as of the respective period end.

MCAFEE, INC. AND SUBSIDIARIES
PROJECTED GAAP REVENUE AND RECONCILIATION OF PROJECTED
GAAP NET INCOME PER SHARE TO PROJECTED NON-GAAP NET INCOME PER SHARE
(Unaudited)

Q3 FY'09
Projected GAAP revenue range $475M - $495M

Projected net income per share reconciliation:

Projected GAAP net income per share range - diluted $0.25 - $0.29

Add back:
Projected stock-based compensation adjustment per share, net of tax (1) $0.09 - $0.13
Projected other adjustments per share, net of tax (2) $0.20 - $0.24

Projected non-GAAP net income per share range - diluted* $0.58 - $0.62

* We believe that providing a forecast of the non-GAAP items set forth above is
useful to investors, and such items are used by our management, for the reasons
associated with each of the adjusting items as described below.

(1) Stock-based compensation charges consist of charges relating to stock-based
awards issued to employees and outside directors including stock options,
restricted stock awards and units, restricted stock units with performance-based
vesting and our Employee Stock Purchase Plan determined in accordance with SFAS
123R. Because of varying available valuation methodologies, subjective
assumptions and the variety of award types, the Company believes that the
exclusion of stock-based compensation charges allows for more accurate
comparisons of our operating results to our peer companies, and for a more
accurate comparison of our financial results to previous periods. In addition,
the Company believes it is useful to investors to understand the specific impact
of the application of SFAS 123R on our operating results.

(2) Other adjustments include amortization of purchased technology and
intangibles, investigation related and other costs, restructuring charges,
acquisition related costs, loss/gain on sale/disposal of assets and technology,
income taxes and certain other items. We exclude these items because we believe
they are not directly related to the operation of our business. A more detailed
explanation of the reasons why we exclude these categories from our GAAP net
income is contained in paragraphs (B) through (K) above under the table entitled
"Reconciliation of GAAP to Non-GAAP Financial Measures."

For Q3 FY`09, this guidance reflects an assumed annual GAAP tax rate of 28% and
an annual non-GAAP tax rate of 24%.

MCAFEE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED REVENUE BY PRODUCT GROUPS
(in thousands)
(Unaudited)

Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended
June 30, 2009 March 31, 2009 December 31, 2008 September 30, 2008 June 30, 2008

McAfee Corporate $ 291,409 62 % $ 275,975 62 % $ 260,615 61 % $ 246,713 60 % $ 239,998 60 %

McAfee Consumer 177,277 38 % 171,734 38 % 163,372 39 % 162,966 40 % 156,760 40 %
Total McAfee $ 468,686 100 % $ 447,709 100 % $ 423,987 100 % $ 409,679 100 % $ 396,758 100 %

McAfee, Inc.
Brandie Claborn, 972-987-2124 (Investors)
brandie_claborn@mcafee.com
Tracy Ross, 650-245-8466 (Media)
tracy_ross@mcafee.com

Copyright Business Wire 2009

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