December 9, 2002

NetIQ Completes Acquisition of PentaSafe Security Technologies

NetIQ Corp. (Nasdaq: NTIQ), a leading provider of Systems Management, Security Management and Web Analytics solutions, today completed its previously announced acquisition of PentaSafe Security Technologies, Inc., a recognized leader in integrated security management solutions designed to ensure continuous compliance with security policies as well as to defend against the latest security threats.


Press Release

SAN JOSE, Calif.

NetIQ Corp. (Nasdaq: NTIQ), a leading provider of Systems Management, Security Management and Web Analytics solutions, today completed its previously announced acquisition of PentaSafe Security Technologies, Inc., a recognized leader in integrated security management solutions designed to ensure continuous compliance with security policies as well as to defend against the latest security threats.

The addition of PentaSafe accelerates NetIQ's presence and momentum in the Security Management market, broadens its customer base, and strengthens its security product portfolio and domain expertise. This merger also capitalizes on the convergence of systems and security management. Increasingly, systems management technologies such as data collection agents and event collection, consolidation, filtering, correlation and alerting are required to deliver enterprise scale security management solutions. The PentaSafe VigilEnt™ products will be integrated with NetIQ's Security Management and Administration products under the brand NetIQ VigilEnt.

"Our acquisition of PentaSafe takes us a major step forward in our goal of continually expanding our leadership in the security management market," said Charles M. Boesenberg, chairman and CEO of NetIQ. "With leading positions in the policy management, directory and user management, firewall analysis and reporting, intrusion detection, vulnerability management and centralized security incident and event management markets, we are poised to marry the best of each product line into innovative end-to-end solutions that provide unparalleled integrated security management and serve the ever pressing needs of our customers."

Douglas J. Erwin, general manager, security and administration business unit and former chief executive officer at PentaSafe, stated: "This combination will result in greatly enhanced offerings for our collective customers, increased business opportunities with partners, and compelling career opportunities for our employees."

About NetIQ

Founded in 1995, NetIQ Corp. (Nasdaq: NTIQ) is a leading provider of Systems Management, Security Management and Web Analytics solutions. Historically focused on the Windows management market, NetIQ now delivers cross-platform solutions that enhance business performance resulting in higher returns on infrastructure and Web investments. NetIQ products are sold across all continents directly and through a network of authorized NetIQ partners and resellers. The company is headquartered in San Jose, Calif., with development and operational personnel in Houston, Texas; Raleigh, N.C.; Bellevue, Wash.; and Portland, Ore. For more information, please visit NetIQ's Web site at http://www.netiq.com/ or call (888) 323-6768.

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