Quest Software Completes Acquisition of Aelita Software

IRVINE, Calif.--()--March 18, 2004--

  Combination of Technologies and Expertise Expands Quest's Footprint in the Microsoft Infrastructure Management Market Segment  



Quest Software, Inc. (Nasdaq:QSFT), a leading provider of application management solutions, today announced that it has completed the acquisition of Aelita Software, a leading provider in systems management solutions for Microsoft Active Directory and Microsoft Exchange environments. Under the terms of the definitive agreement announced on January 28, 2004, Quest Software acquired Aelita in a transaction with a value of approximately $115 million in cash and assumed options. The definitive agreement also contemplates that Quest Software will grant additional stock options to certain employees of Aelita.

"This acquisition is a major milestone in the history of Quest and demonstrates our ongoing commitment to the Microsoft infrastructure management market segment and the growing number of customers who rely on Microsoft Active Directory and Exchange to operate their day-to-day business activities," said Vinny Smith, chairman and CEO, Quest Software. "The combined technology, resources and expertise of Aelita and Quest will enable us to deliver the comprehensive set of solutions customers require to feel confident in the availability and security of their critical Microsoft systems and the productivity of their support staff."

The acquisition of closely-held Aelita significantly expands Quest Software's product portfolio of solutions to simplify, automate and secure today's increasingly complex Microsoft infrastructures. Quest Software plans to leverage Aelita's strengths in migration, event log management, and backup and recovery in combination with its own expertise in the areas of performance management, troubleshooting, and Active Directory and Exchange management. The resulting product portfolio is expected to be one of the most comprehensive sets of products in the industry for Microsoft systems management.

In May 2004, Quest Software plans to announce further details on the integration of Aelita, including a product integration roadmap and support strategy. Quest Software will provide its financial guidance related to the Aelita acquisition during its first quarter 2004 earnings conference call.

About Quest Software, Inc.

Quest Software, Inc., a leader in application management, provides software for Application Confidence to 18,000 customers worldwide, including 75 percent of the Fortune 500. Quest products for application performance management, database management and Microsoft infrastructure management help customers develop, deploy, manage and maintain enterprise applications without expensive downtime or business interruption. Headquartered in Irvine, Quest Software can be found in offices around the globe and at www.quest.com.

Forward-Looking Statements

This release includes information concerning our acquisition of Aelita that might be considered forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ from those anticipated as a result of various factors, including challenges of integration and achieving anticipated synergies associated with the acquisition of Aelita as well as risks associated with: the impact of further adverse changes in general economic conditions on our customers; further reductions or delays in information technology spending; variations in the size and timing of customer orders; competitive products and pricing; rapid technological change; risks associated with the development and market acceptance of new products; fluctuating currency exchange rates and other risks associated with international operations; and the need to attract and retain qualified employees. For a discussion of these and other related risks, please refer to our recent SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2003. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. We undertake no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

Contacts

Quest Software
Editorial Contacts:
Erin Jones, 949-754-8032
erin.jones@quest.com
or
Carrie Reber, 614-336-9223 x760
carrie.reber@quest.com
or
Investor Relations Contact:
Scott Davidson, 949-754-8659
scott.davidson@quest.com

Contacts

Quest Software
Editorial Contacts:
Erin Jones, 949-754-8032
erin.jones@quest.com
or
Carrie Reber, 614-336-9223 x760
carrie.reber@quest.com
or
Investor Relations Contact:
Scott Davidson, 949-754-8659
scott.davidson@quest.com