Quest Software Completes Acquisition of ScriptLogic

Joining Microsofts Global ISV Partner of Year Deepens ScriptLogics Microsoft Relationship; Acquisition Broadens Quests Windows Business into New Markets

ALISO VIEJO, Calif.--()--Quest Software, Inc. (Nasdaq:QSFT) today announced that it closed the acquisition of ScriptLogic on August 8th in a cash transaction valued at approximately $90 million. The combination of Quest, a market-leading provider of database, applications, and Windows management solutions, and ScriptLogic, a leading provider of systems lifecycle management solutions for Windows-based networks, brings together two of the top ISVs that Quests enterprise customers and ScriptLogics small- and medium-sized business (SMB) customers look to for help in managing their Windows environments.

In addition to broadening Quests presence in the SMB space and adding PC lifecycle management offerings to the Quest product portfolio, the acquisition expands Quests indirect channel model that forms ScriptLogics primary route to market. Last month Quest was named the Microsoft Global ISV Partner of the Year for the second time in recent years, and ScriptLogic looks to benefit from this strong relationship as well as Quests substantial presence in markets around the world.

As we continue to evolve our business from where we started in database management to applications management and Windows infrastructure management, the Windows space continues to be vitally important for our growth, said Vinny Smith, Quest CEO, and we are excited to add ScriptLogic to this part of our business. We look forward to further penetrating the Windows market with new products now that ScriptLogic is part of the Quest family.

ScriptLogic will operate as a wholly-owned subsidiary of Quest with Jason Judge, ScriptLogic CEO, and other key members of the management team remaining in place following the acquisition. With revenue of approximately $20 million last year, the company has generated positive cash flow from operations and has more than 19,000 customers.

The market presence and enterprise IT expertise of Quest coupled with the success ScriptLogic has achieved with our award-winning, best of breed solutions for Windows-based SMB customers make this acquisition very exciting, said Judge. Joining with Quest will help us penetrate further into our existing markets by selling Quest solutions while simultaneously giving us the resources and expertise to expand into new markets.

About Quest Software, Inc.

Quest Software, Inc. delivers innovative products that help organizations get more performance and productivity from their applications, databases and Windows infrastructure. Through a deep expertise in IT operations and a continued focus on what works best, Quest helps more than 50,000 customers worldwide meet higher expectations for enterprise IT. Quests Windows Management solutions simplify, automate and secure Active Directory, Exchange Server, SharePoint, SQL Server, .NET and Windows Server as well as integrating Unix, Linux and Java into the managed environment.

About ScriptLogic Corporation

ScriptLogic Corporation is a leading global provider of systems lifecycle management solutions for Microsoft Windows-based networks. ScriptLogics award-winning suite of desktop, server, and Active Directory management solutions help empower IT organizations to proactively save time, increase security, and maintain regulatory compliance. More than 19,000 customers use ScriptLogic solutions to manage approximately 4.75 million desktops and 110,000 servers. ScriptLogic solutions benefit any size network in any industry. ScriptLogic is currently headquartered in Boca Raton, Florida and can be found on the Internet at www.scriptlogic.com.

Quest, Quest Software, the Quest logo are trademarks of Quest Software, Inc. in the U.S.A. and certain other countries. All other trademarks referenced herein are the property of their respective owners.

Forward Looking Statements

This press release includes predictions, estimates and other information relating to our acquisition of ScriptLogic Corporation 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: risks that the proposed transaction or related integration activity may disrupt current plans, projects and operations; and our ability to recognize the benefits of the acquisition.

Other risks and uncertainties that may affect forward-looking statements include risks inherent in software businesses, which include but are not limited to: introducing quality products on a timely basis that satisfy customer requirements and achieve market acceptance; lengthy and variable sales cycles create difficulty in forecasting the timing of revenue; risks associated with significant foreign operations, including fluctuations in foreign currency exchange rates; aggressive competition in all of our markets, which creates pricing pressure; risks that our intellectual property rights may not be adequate to protect Quests business or that others may claim that Quest infringes upon their intellectual property rights; risks associated with the ability to retain existing personnel and recruit and retain qualified personnel; declines or delays in information technology spending; changes in the demand for our products and services; inability to maintain or expand relationships with channel partners, value added resellers and systems integrators; difficulty of improving our infrastructure in order to be able to continue to grow; and other risks described from time to time in Quests filings with the SEC. For a discussion of these and other related risks, please refer to our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2005, which are available through the SECs EDGAR system at www.sec.gov or from Quests website at www.quest.com. 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.

Web Links Referenced in this Release:

Quest Software, Inc. www.quest.com

ScriptLogic www.scriptlogic.com

Applications www.quest.com/application_management

Databases www.quest.com/database_management

Windows Infrastructure www.quest.com/windows_management

Contacts

Quest Software, Inc.
Editorial Contact:
Joe Horine, 614-726-4775
Joe.Horine@quest.com
or
Investor Contact:
Scott Davidson, 949-754-8659
Scott.Davidson@quest.com

Contacts

Quest Software, Inc.
Editorial Contact:
Joe Horine, 614-726-4775
Joe.Horine@quest.com
or
Investor Contact:
Scott Davidson, 949-754-8659
Scott.Davidson@quest.com