Partial Breaking of N=2 Supersymmetry and of Gauge Symmetry in the U(N) Gauge Model

We explore vacua of the U(N) gauge model with N=2 supersymmetry recently constructed in hep-th/0409060. In addition to the vacuum previously found with unbroken U(N) gauge symmetry in which N=2 supersymmetry is partially broken to N=1, we find cases in which the gauge symmetry is broken to a product gauge group \prod_{i=1}^n U(N_i). The N=1 vacua are selected by the requirement of a positive definite Kahler metric. We obtain the masses of the supermultiplets appearing on the N=1 vacua.