July 23, 2004

WebTrends 7 Receives Top Scores by Independent Research Firm

Marketing/Merchandising Reporting, and Customer Momentum Among High Reviews for WebTrends

Press Release

San Jose, CA

WebTrends, the Web analytics market share leader and a business unit of NetIQ Corp. (Nasdaq: NTIQ) , today announced that NetIQ was among a select group of companies that Forrester invited to participate in its June 2004 Wave™ report, “Selecting a B2C Site Analytics Product” and its Tech Choices™ reports, “What Matters to Web Site Analytics Users” and “Selecting Web Site Analytics for Service Sites.” In Forrester’s evaluations, WebTrends® was recognized for the strength of its current, award-winning product offerings. WebTrends scored a perfect 5.0 for its advanced functionality in many categories including Path & Scenario Analysis, Marketing & Merchandising Reporting and Ad Hoc Query Capabilities.

In addition to receiving perfect scores in many product areas, WebTrends received a 5.0 ranking for “Large Site Adoption,” and overall “Profitability and Customer Momentum” demonstrating WebTrends’ service to some of the Internet’s largest sites and underscoring its continued financial strength and commitment to customer success.

“It’s exciting to see that the market’s reaction to the release of WebTrends 7 has been even stronger than we had anticipated. In addition to this independent analyst report, industry experts such as product reviewers at eWeek have stated that WebTrends offers by far the greatest level of choice, flexibility and has excellent overall capabilities,” said Greg Drew, senior vice president and general manager of the WebTrends business unit at NetIQ. “Not only is WebTrends the overall market share leader with over twice the revenue of its largest competitor, our estimates indicate that we have more enterprise “On Demand” customers than any other vendor. We plan to maintain our leadership position through our commitment to innovation and a secure, reliable infrastructure that is unparalleled in our industry.”

About WebTrends

As the worldwide leader and trusted standard for web analytics, WebTrends delivers award-winning solutions that help marketing executives improve their return on investment. From campaign performance and search engine marketing to web site conversion and customer retention, WebTrends provides marketers a complete solution to accelerate their web results. Thousands of organizations worldwide, including more than half of the Fortune and Global 500 companies, rely on WebTrends everyday to measure and optimize their results. Offering both an On Demand service and software solutions, WebTrends uniquely provides customers with complete choice and control to ensure the solution can adapt with their dynamic business needs. WebTrends is a business unit of NetIQ Corporation. For more information, visit http://www.webtrends.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. and Galway, Ireland. For more information, please visit the company’s web site at http://www.netiq.com or call (888) 323-6768.

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