Intel's LANDesk® Products Unit To Be Established As An Independent Company

Vector Capital and vSpring Capital to Create New Company; Joe Wang, former VP of Symantec, to Lead New Venture

SANTA CLARA, Calif./SALT LAKE CITY, Sept. 4, 2002 -- Intel Corporation and investment firms Vector Capital and vSpring Capital today announced that Intel's Software Products & Services Division, the business unit that produces Intel's award-winning LANDesk® software products, will become an independent company. The LANDesk Acquisition Corporation, a company recently created by Vector Capital and vSpring Capital, has entered into an agreement to purchase certain assets of the business, including the LANDesk-branded products. Intel will retain a minority equity position in the business, which will be managed through Intel Capital. Specific financial terms of the transaction were not disclosed.

As part of the transaction, the new business will purchase some of the LANDesk assets and intellectual property, and the LANDesk products, including the LANDesk Management Suite, LANDesk Client Manager, LANDesk Server Manager, LANDesk Asset Service, Instant Support Suite, Mobile Manager and Remote Services, and will license certain other intellectual property.

The new business will have its North American headquarters in the Salt Lake City area. The LANDesk business unit employs approximately 150 employees worldwide with extensive backgrounds in building leading desktop and device management solutions for medium to large companies. The LANDesk management team, which will be offered positions with the new company, includes experienced professionals with a history of helping drive industry standards and improving the management of IT infrastructure. The company will be led by CEO Joe Wang, most recently vice president of Symantec Corporation's Enterprise Administration Division, and previously founder and CEO of 20/20 Software. John Sutherland, formerly general manager of the business for Intel, will remain with the business as vice president of operations.

"As an independent company, the LANDesk business is positioned to become the leader in desktop and device management for medium and large companies," Wang said. "Our commitment to the LANDesk products, customers and channel partners remains a top priority. We plan to make the transition seamless for our customers and partners as we support and grow the LANDesk product line with increased and dedicated resources."

"The LANDesk business is an ideal candidate for corporate independence," said Alex Slusky, managing partner of Vector Capital, which specializes in software spin-offs. "It has a rare combination of stability, profitability and opportunity. By building on years of technology investment by Intel, the tremendous talents of the LANDesk team and the depth and quality of the customer base, we are confident that we can create a thriving independent software business."

"LANDesk products played a defining role in the creation of the desktop management category over a decade ago and have continued to provide innovative solutions for managing servers, desktops and mobile devices," said Ed Ekstrom, managing partner of vSpring. "We are excited to have such a high-caliber company with headquarters in Utah, and believe this transaction will benefit many other software companies by having the LANDesk business continue to be part of the critical mass of the region."

"The LANDesk business is a leader in the desktop and device management segment," said John Miner, vice president and general manager of Intel Capital. "Given Intel's focus on silicon building blocks, we believe that an independent company focused on the LANDesk products represents a great opportunity for continued growth and profitability. We believe this new business can optimally meet customers' device management needs."

Intel will provide transition services to the LANDesk business for a period of time - including production and order fulfillment - to help ensure a smooth transition for LANDesk customers.

The transaction is subject to customary closing conditions, and is expected to close by the end of this month.

About the Companies
Vector Capital is a San Francisco-based venture capital firm with over $200 million under management focused on special opportunity investments in software and software-enabled services. Vector Capital serves the needs of growing software companies by actively partnering with their management in creating value for their customers and shareholders. Vector Capital's investments include Niku (NASDAQ: NIKU), Real Networks (NASDAQ: RNWK), Savi Technology and ProcessClaims. Additional information about Vector Capital can be obtained at www.vectorcapital.com.

vSpring Capital is a licensed SBIC with headquarters in Salt Lake City. Known as one of the leading funds in the region, vSpring Capital has a reputation for identifying software and life science companies with significant potential and shaping strategies to grow them into market leaders. For more information visit www.vspring.com.

Intel is a trademark or registered trademark of Intel Corporation or its subsidiaries in the United States and other countries.

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