HOUSTON AND CLEARWATER, FL - (March 23, 2005) - BMC Software, Inc., [NYSE: BMC], a leading provider of enterprise management solutions, today announced the acquisition of privately held OpenNetwork, a leading provider of Web access management and Web single sign-on solutions. Responding to increasing customer demands for Web-enabled applications as part of a comprehensive identity management solution, this acquisition expands BMC Software's identity management product suite to include browser-based authentication and authorization solutions that enable customers to securely manage access to Web-based applications across multiple business environments. OpenNetwork also brings federated identity management capabilities to BMC Software, which enables secure and highly efficient e-commerce.

This acquisition strengthens BMC Software's competitive positioning by creating a more comprehensive identity management suite. With the addition of OpenNetwork, BMC Software's identity management suite now delivers Web access management, Web single sign-on (SSO), and identity federation services for Web-enabled applications. These new offerings complement the Company's existing identity management solutions that span user provisioning, workflow, enterprise directory content management, enterprise single sign-on, and audit and compliance management.

"As enterprise IT departments grapple to reduce risk, thwart attacks, comply with regulations, and instill confidence in customers and partners, the natural response is to improve identity-based security and accountability through deployment of an identity and access management infrastructure," said Phil Schacter, vice president and service director, The Burton Group. "Enterprise buyers now favor holistic, integrated identity and access management solutions that enable broad coverage of authentication, authorization, and user management."

Over the past year, BMC Software has been executing on a strategy to expand the company's identity management product suite to enhance its Business Service Management (BSM) offerings, which allow customers to manage IT from a business perspective. Web access management strengthens and extends the benefits of BSM beyond the boundaries of an organization to include customers and partners.

"Web applications are central to most companies' abilities to deliver goods and services to their customers, employees and partners. Providing Web access management capabilities with a BSM focus is a key differentiator for BMC," said Somesh Singh, vice president and general manager, identity management business unit, BMC Software. "Our aim is to provide solutions that adapt to our customers' processes rather than requiring customers to adapt their processes to our solution. With the acquisition of OpenNetwork, we continue to execute on our plan to deliver one of the industry's most robust, yet easy to implement, identity management solutions."

"BMC's commitment to delivering fully integrated and comprehensive identity management solutions to its customers is synonymous with our mission at OpenNetwork," said Bob Worner, CEO, OpenNetwork. "Our customers will benefit from this strategic move not only as we combine the strengths of our product offerings with BMC's identity management suite, strong financial backing and worldwide reach, but also as we grow together in our commitment to delivering high-quality products to our existing and expanding customer bases."

OpenNetwork is a privately held company headquartered in Clearwater, Fla. with an additional office in the United Kingdom. OpenNetwork services more than 70 customers throughout the world and across industries such as financial services, insurance, telecommunications, healthcare, distribution, utilities, technology, and manufacturing. Under the terms of the agreement, BMC software will acquire 100 percent of OpenNetwork's assets for $18 million in cash. Approximately 40 OpenNetwork employees will join BMC Software's Identity Management Business Unit as a result of the acquisition.

Key benefits of the acquisition

• Provides customers one easy-to-use Web-based management console allowing administrators to manage internal and external user populations across multiple enterprises and IT domains;
• Enables customer and partner collaboration using administration of identity information across company borders in support of identity federation services;
• Provides customers with a highly scalable, easy-to-deploy Web access management solution compatible with Java and Microsoft-based platforms; and Creates new business opportunities for BMC Software with small to medium sized businesses (SMBs).

OpenNetwork leverages the data synchronization capabilities of Microsoft Identity Integration Server (MIIS) to enable role-based provisioning across a broad range of enterprise resources including systems not currently supported by MIIS such as RACF, AS/400, SAP R/3, Solaris and AIX. It can be deployed quickly, easily, and incrementally to accommodate evolving customer needs. The product is I18N compliant and has been localized in French, German, Spanish, Italian and Chinese. BMC Software will begin delivering many of these solutions immediately.

About Business Service Management
Business Service Management is BMC Software's approach for enabling companies to manage IT and services from a business perspective. BSM enables companies to understand and predict the impact of technology changes on the business, and conversely, how changes in the business impact IT, resulting in improved customer service and business performance. For additional information on BSM, visit www.bmc.com.