January 20, 2004

Kindred Healthcare Upgrades to Newest Version

Long-time User Able to Increase Security and Reduce Administrative Overhead by 97%; Help Ensure HIPAA Compliance

Press Release

SAN JOSE, Calif.

NetIQ Corp. (Nasdaq: NTIQ), a leading provider of Systems & Security Management and Web Analytics solutions, today announced that Kindred Healthcare, one of the nation's largest health care providers, is upgrading to the latest version of NetIQ's Directory and Resource Administrator™.

By implementing Directory and Resource Administrator and Microsoft Active Directory, Kindred Healthcare has experienced a 97 percent reduction in the number of people with high levels of administrative privilege, going from 150 to four. Not only has this change helped Kindred Healthcare comply with HIPAA regulations and other audit regulatory requirements, but it has also enabled them to maximize their Return On Active Directory (ROAD) by minimizing the financial risk due to security exposures.

Kindred Healthcare has been using Directory and Resource Administrator since 2000 and the company will be transitioning to Directory and Resource Administrator 7.0 in early 2004. Approximately half of the network administrators - or roughly 300 people - are now using Directory and Resource Administrator to secure Microsoft Active Directory for 20,000 users.

"We're looking forward to leveraging Microsoft Active Directory to distribute password reset requests in near real-time with Directory and Resource Administrator 7.0," said Kelley Ealy, senior security analyst at Kindred Healthcare. "We've also benefited from Directory and Resource Administrator solution's complementary relationship with our existing, homegrown identity management solution. Now tasks that were once done manually can be done automatically such as populating accounts across our Windows environment with consistent user information."

Directory and Resource Administrator has also helped Kindred Healthcare stay ahead of the compliance game.

"Our help desk is actually scattered over several departments and their roles are varied-from monitoring for Windows NT support to resetting passwords," said Ealy.

We've been able to implement role-based security that improves our control over the AD environment and who has access to what information. The centralized auditability also ensures that we're in compliance with HIPAA and that we are able to pass other internal and external audits. By being able to manage most administrative tasks through Directory and Resource Administrator, we no longer have to hunt through every Windows Domain Controller to find information about administrative activity-an almost impossible challenge."

Paving the path to an increase in ROAD investments is NetIQ's unique Layered Security Architecture, which enables distribution of directory access based on IT staff or help desk task needs, skill level and permissions. This architecture, found only with the Security Administration Suite, not only increases security but also provides more flexibility than single-layered access models by allowing user management beyond the Active Directory topology. This provides offline policy management and enables integrated provisioning and identity management.

"Our Layered Security Architecture, which essentially works on top of Microsoft Active Directory, has worked for Kindred to limit the number of people with access," said Kent Erickson, senior director of Product Management for NetIQ Security Administration Solutions. "This leads to immediate returns on AD investments by lowering security exposures and offering greater control of the AD environment."

About NetIQ Directory and Resource Administrator 7.0

Directory and Resource Administrator 7.0 allows IT administrators, help desk staff, and end users to update directory data and manage computer resources with a flexible, dynamic task delegation model. The new release leverages detailed customer experience data to dramatically improve real-world task performance, such as using Microsoft Active Directory to provide near real-time password resets in geographically distributed organizations. Directory and Resource Administrator is part of NetIQ® Security Administration Suite™, which enables users to delegate Windows account administration, manage the complexities of Group Policies and audit GPO changes, as well as ensure proper Active Directory access and file security.

To read more about NetIQ's Administration Solutions and the "ROAD" initiative go to http://www.netiq.com/go/ROAD

About NetIQ

NetIQ Corporation (Nasdaq: NTIQ) is a leading provider of Systems & 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; Portland, Ore; Raleigh, N.C.; Bellevue, Wash.; Galway, Ireland and Auckland, New Zealand. For more information, please visit the company's web site at www.netiq.com or call 1-888-323-6768.

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Amy Sachrison
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