BMC Software Completes Acquisition of Identify

HOUSTON, May 10, 2006 – BMC Software today announced that it has completed the acquisition of Identify Software Ltd., a leading global provider of application problem resolution (APR) software.

BMC will continue to integrate Identify solutions into its transaction management offering, a high-growth area that is a key part of BMC’s market-leading Business Service Management (BSM) strategy. BSM is the most effective way to manage IT from the perspective of the business, an approach that analysts indicate is now going mainstream as companies and other organizations seek to reduce their IT costs and improve the quality and efficiency of IT services. According to many of these analysts, BMC enjoys a commanding lead in both BSM vision and implementation.

"Businesses today depend on an array of underpinning applications for the delivery of mission-critical products and services," said Dan Barnea, senior vice president, strategy and corporate development, BMC Software. "These applications are part of an interdependent network of IT resources that represent many potential points of failure and associated business risk. Identify’s state-of-the-art application problem resolution technology provides customers with new transaction management capabilities that dramatically accelerate problem resolution processes across the application lifecycle."

The global leader in application problem resolution software, Identify’s AppSight Application Problem Resolution System leverages patented Black Box technology solutions that enable hundreds of enterprises and software vendors to increase the speed of application delivery, increase application quality, performance, and availability, and reduce application support costs.

About BMC Software
BMC Software, Inc. [NYSE:BMC], is a leading provider of enterprise management solutions that empower companies to manage their IT infrastructure from a business perspective. Delivering Business Service Management, BMC Software solutions span enterprise systems, applications, databases and service management. Founded in 1980, BMC Software has offices worldwide and fiscal 2005 revenues of more than $1.46 billion. For more information about BMC Software, visit www.bmc.com.

BMC Software, the BMC Software logos, and all other BMC Software product or service names are registered trademarks or trademarks of BMC Software, Inc. All other trademarks or registered trademarks belong to their respective companies. © 2006, BMC Software, Inc. All rights reserved.

This press release contains forward-looking statements that involve risks and uncertainties concerning BMC Software's acquisition of Identify Software Ltd., BMC Software's expected financial performance (including without limitation as described in the quotations from management in this press release), as well as BMC Software's strategic and operational plans. Actual events or results may differ materially from those described in this press release due to a number of risks and uncertainties. Information about potential factors that could affect BMC Software's business and financial results is included in BMC Software's Annual Report on Form 10-K for the fiscal year ended March 31, 2005 which is on file with the Securities and Exchange Commission (the "SEC") and available at the SEC's website at www.sec.gov.