April 5, 2004

NetIQ to Acquire First Place Software WebPosition Business

Combination of WebTrends and WebPosition Gold Creates Opportunity to Accelerate Web ROI

Press Release

Orlando, Fl.

NetIQ Corporation (Nasdaq: NTIQ), a leading provider of Systems & Security Management and Web Analytics solutions, at its annual NetConnect™ Users' Conference in Orlando, Florida, today announced its entry into a definitive agreement to acquire the WebPosition® product line and business of First Place Software, Inc. The transaction is expected to close later this week. WebPosition Gold™, is the industry's leading Search Engine Optimization software solution. Fortune 500 companies and thousands of other organizations around the world use WebPosition Gold to optimize their Web pages to attract greater numbers of qualified visitors to their sites. This acquisition will solidify NetIQ's WebTrends business unit as the leader in Search Engine analytics and create the market's most comprehensive Search Engine Marketing and Search Engine Optimization solution set. Terms of the transaction were not disclosed.

"Beyond mere click stream analysis, effective Web site analytics provide a holistic view of the entire site: its content, structure, and flow; how visitors and search engines interact with it; and what opportunities exist to drive greater value," said Matthew Berk, Independent Internet Analyst in New York, NY. "The synergies between site analytics and Search Engine Marketing are only in their infancy."

This acquisition capitalizes on the unique strengths of the WebTrends® and WebPosition Gold products. WebTrends is a complete solution that enables users to measure and optimize results from all of an organization's Web initiatives, from content effectiveness to commerce analysis to campaign performance. With WebPosition Gold, organizations can ensure they are publishing Web site content that is relevant to the searches being conducted by Internet users. The combination of these two offerings will enable WebTrends customers to reach a greater number of targeted Web visitors and accelerate their return on investment in online marketing.

"Organizations continue to demand improved results from all of their Web initiatives. Today, five out of six commercial searches worldwide originate from organic search results. With the addition of WebPosition Gold, we are uniquely positioned to analyze activity from both paid and organic searches and optimize Web pages to drive improved conversion," said Greg Drew, senior vice president and general manager of the WebTrends business unit at NetIQ. "Our aim is to surround the marketer with all of the tools required to achieve accelerated ROI on any Web initiative."

"The complementary nature of our products and our positions as industry leaders created an opportunity to make a substantial and unique contribution to our mutual customers," said Brent Winters, president and chief executive officer at FirstPlace Software. "The combined product offering should leverage our strengths to take Search Engine Optimization to the next level."

For more information on WebPosition Gold

Read the Frequently Asked Questions for more information

About WebTrends

As the Web analytics market leader and trusted standard, WebTrends delivers the complete view of all Web initiatives for easier decisions, smarter marketing and better results. Thousands of organizations worldwide, including more than half of the Fortune and Global 500 companies, rely on WebTrends to measure and optimize their Web results. Offering both software and on-demand services, WebTrends uniquely provides customers with complete choice and control to ensure the solution can adapt with their dynamic business environments. WebTrends is a business unit of NetIQ Corporation.

About NetIQ

NetIQ Corporation (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 1-888-323-6768.

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Amy Sachrison
Media and Analyst Relations

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Email: amy.sachrison@netiq.com