December 1, 2005

Press Releases NetIQ to Sell Marshal, Security Reporting Center and Firewall Suite Products

Company to Continue to Focus on Systems and Security Management Solutions


Press Release

SAN JOSE, Calif.

NetIQ Corp. (Nasdaq: NTIQ), a leading provider of integrated systems and security management solutions, today announced that it has agreed to sell its Marshal products, including NetIQ® MailMarshal™, NetIQ® WebMarshal™, NetIQ Security Reporting Center™ and the NetIQ Firewall Suite™, as part of a management buyout by a newly formed company called Marshal Limited. Marshal Limited is backed by Kelso Place Asset Management, a London-based private equity firm.

"The sale of these products allows NetIQ to further sharpen its focus on its Knowledge Based Service Assurance (KBSA) strategy. We remain committed to maintaining a leadership position in the converging systems and security management markets. The Marshal products are excellent products in their segment, but are not integral to our KBSA strategy. By divesting them, we will be able to accelerate execution of our KBSA strategy," said Chuck Boesenberg, chairman and CEO of NetIQ.

"The Marshal products enjoy a huge amount of brand equity and a strong position within the international content security market," said Ed Macnair, currently NetIQ's head of worldwide sales for Marshal products, who will join Marshal Limited as CEO. "The new management and investment team will provide the product line with dedicated support and new funding to develop further the products and deliver value to Marshal customers."

The transaction is expected to close within two weeks. In connection with the sale of the Marshal products, NetIQ anticipates reducing headcount by 17 people worldwide. For its fiscal year ended June 30, 2005, NetIQ generated approximately eight percent of total revenues from its Marshal products.

About NetIQ

NetIQ is a leading provider of integrated systems and security management solutions that empower IT organizations with the knowledge and ability necessary to assure IT service. NetIQ's Knowledge-Based Service Assurance products and solutions include embedded knowledge and tools to implement industry best practices and to better ensure operational integrity, manage service levels and risk, and ensure policy compliance. NetIQ's modular, best-of-breed solutions for Performance & Availability Management, Security Management, Configuration & Vulnerability Management, and Operational Change Control integrate through an open, service-oriented architecture allowing for common reporting, analytics and dashboards. For more information about NetIQ, visit www.netiq.com or call (888) 323-6768.

Kelso Place Asset Management

Kelso Place is a FSA regulated, private equity fund manager in the UK. Kelso Place invests in businesses with significant potential for growth and works closely with the management teams of portfolio companies to help develop their businesses strategically and enhance their operational effectiveness.

www.marshal.com

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Amy Sachrison
Director
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Email: amy.sachrison@netiq.com