April 4, 2004

NetIQ and Infravio Form Strategic Alliance to Lead the Web Services Management Market

Exclusive Technology Agreement, Investment, and Sales/Marketing Programs Highlight Alliance


Press Release

ORLANDO, FL.

At NetConnect™ 2004, NetIQ Corp. (Nasdaq: NTIQ), a leading provider of Systems & Security Management and Web Analytics solutions, and Infravio, Inc., the leader in contract-driven Web Services Management software, today announced a strategic alliance, highlighted by an exclusive technology agreement and plans for joint sales and marketing efforts. In addition, NetIQ is acting as lead investor in Infravio's Series D Preferred financing, which is currently being closed. Existing investors, Walden International and Crystal Internet Ventures, are also participating in the round. Terms of the agreements were not disclosed.

"This is a smart and forward-looking alliance for both Infravio and NetIQ," stated Jason Bloomberg, senior analyst at ZapThink, a leading research and analysis group focusing on emerging technologies and their business impact. "As companies look to leverage the power of Web services and build Service-Oriented Architectures (SOAs), systems management serves both to monitor the operation of the services, as well as to maintain the services layer that forms the core of the SOA. NetIQ and Infravio clearly complement each other with their strengths in systems management and SOA domain expertise, respectively. As a result, this partnership promises to provide substantial value to customers who are looking to build agile enterprise SOAs."

As part of the agreement, NetIQ has exclusive rights to embed the operations management component of Infravio Ensemble™ into the award-winning NetIQ® AppManagerÒ Suite. This integrated solution will enable IT administrators to manage Web Services through the same AppManager console they already use for end-to-end management of mission critical Windows, Linux and UNIX environments. The first NetIQ solutions incorporating Infravio technology will be AppManager for Web Services .NET and AppManager for Web Services J2EE. NetIQ expects both products to be generally available in the fall of this year.

"This alliance with Infravio is intended to eliminate the need for customers to integrate point product solutions for Web Services Management with an enterprise systems management solution," said David Pann, vice president of Product Management & Marketing at NetIQ, "In the future, IT administrators will have the ability to monitor and manage any off-the-shelf or custom application built on Web Services standards using AppManager."

Added Jeff Tonkel, president and CEO of Infravio, "the complementary NetIQ/Infravio alliance strengthens the competitive positioning for both companies, propelling NetIQ to the forefront of the Web Services management space. Infravio gains access to a broader customer base to fuel our growth while we drive market penetration of our SOA/Web Services Implementation Framework."

The Infravio SOA/Web Services Implementation Framework allows companies to maximize ROI from their investments in Web Services technology. In addition to operations management, the framework includes a Corporate Web Services Registry, used to catalogue, promote, authorize, configure and track Web Services and their use throughout the enterprise, and a Distributed Broker for Web Services security enforcement, data transformation, routing, transport brokering, and lifecycle management.

Concluded Srinivas Balasubramanian, co-founder and chief strategist for Infravio, "the combination of NetIQ AppManager and Infravio Ensemble creates a highly powerful SOA/Web Services Implementation Framework, making NetIQ and Infravio clear leaders in the Web Services Management market."

About Infravio, Inc.

Infravio, Inc. is an innovator in Web Services Management software. The company's unique end-to-end approach delivers a unified, comprehensive framework that manages the entire lifecycle of Web Services from design to deployment to run-time operations, leading to a Service-Oriented Architecture. The company's Web Services Management suite, Infravio Ensemble™, features Web Services Delivery Contracts™ for gaining control over providers and consumers, and an open extensible architecture for application interoperability. Infravio is headquartered in Cupertino, California and is backed by venture capital firms, Walden International and Crystal Ventures. For more information, please call (408) 861-3038, email sales@infravio.com, or visit www.infravio.com.

About NetIQ

NetIQ Corp. (Nasdaq: NTIQ) is a leading provider of Systems & Security Management and Web Analytics solutions. Historically focused on managing Windows-based applications, 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 (888) 323-6768.

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