October 1, 2004

NetIQ Joins Anti-Phishing Working Group as Sponsor Member

As Phishing Attacks Rise, NetIQ to Help Develop Technology to Combat Threat

Press Release

SAN JOSE, Calif.

NetIQ Corp. (Nasdaq: NTIQ), a leading provider of Systems & Security Management and Web Analytics solutions, today announced that the company has joined the Anti-Phishing Working Group (APWG) to help in the fight against phishing attacks.

The APWG is an industry association of more than 400 companies focused on eliminating the identity theft and fraud that result from the growing problem of phishing and e-mail spoofing. As part of the APWG, NetIQ will help develop technology to combat phishing. In addition, NetIQ will leverage the phishing repository that the APWG maintains in an effort to provide customers with the latest filtering rules via NetIQ's SpamCensor technology in NetIQ® MailMarshal™ SMTP and NetIQ® MailMarshal™ for Exchange. These NetIQ solutions prevent harmful and offensive messages from entering the gateway.

According to Gartner Inc.*, more than 1.4 million users have suffered from identity theft fraud, costing banks and card issuers $1.2 billion in direct losses in the past year. There were 1,979 new, unique phishing scams in July, according to the APWG, a 29 percent increase from June.

"Email-based phishing attacks against corporate networks, which seek illegal access to confidential information such as employees' passwords, are on the rise and becoming extremely sophisticated in nature," said Jim McGrath, senior director of Security Management and Administration Products at NetIQ. "The APWG is leading the charge to protect high-profile technology companies as well as financial institutions, ISPs and law enforcement around the globe. We are pleased to be a part of this effort and hope to help eliminate email-based identity fraud."

"NetIQ is an esteemed addition to the APWG," said Peter Cassidy, secretary general of the APWG. "NetIQ's long tenure and experience in security and vulnerability management and content security will prove beneficial in our research efforts to find ways to help stop the damage being done by phishing attacks."

About the Anti-Phishing Working Group

The Anti-Phishing Working Group (APWG) is focused on eliminating the problem of phishing and e-mail spoofing attacks by developing and sharing information about the problem, and promoting the visibility and adoption of industry solutions. Membership in the group is open to qualified financial institutions, corporations, law enforcement agencies, public policy groups and solution vendors. More information about the APWG is available at www.antiphishing.org.

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.; and Galway, Ireland. 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
Media and Analyst Relations

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