MUSE Micromuse (MM)

Micromuse Inc. (Nasdaq: MUSE), the leading provider of ultra-scalable, realtime business and service assurance software, today announced that 33% of its government customers had specific plans linked to their execution of IT objectives on behalf of overall agency business goals in 2005. The survey, based on responses from 17 agency representatives attending Micromuse's 2005 North American Netcool(R) Users Conference, also found that new Federal Enterprise Architecture (FEA) mandates have affected how its federal customers identify and resolve their IT management issues. FEA is intended to facilitate analysis and the identification of duplicate investments, gaps, and opportunities for collaboration within and across agencies, which are adopting a Business Service Management (BSM) strategy to align their IT operations with support services to improve their overall business performance. "Government agencies are seeking to integrate information and services across departments and multiple agencies, despite their disparate systems," said Shawn McCarthy, IDC senior analyst and program manager for Government IT spending. "They seek ways to consolidate these systems to allow them to visually monitor several data sources in one place. Investing in robust enterprise level platforms which allow ad-hoc analysis and operational reporting capabilities for all of their agency business intelligence needs will help them achieve their goals." Other noteworthy survey findings included the following: -- Nearly 50% of the respondents rated their IT organizations as "somewhat efficient," with an acceptable time to resolution but too many crises to manage; -- Nearly 40% of the respondents noted that they spend an average of 25 - 50% of their day on identifying and resolving IT problems; -- Over 50% of the respondents noted that they have multiple IT silos for networks, systems, applications and security with a wide range of disparate alarms. "Our penetration into the federal market comes with a deep knowledge and understanding of the challenges agencies face when trying to develop a transparent view into all aspects of the network," said Richard Miller, General Manager of Micromuse's Federal Sales. "Micromuse has successfully helped many agencies support their FEA to improve operational efficiencies, overall network health, and assure service delivery." Micromuse's BSM solutions enable actionable intelligence and remediation workflow for improved efficiency and productivity, and provide a single management interface from which organizations can efficiently assure business service availability and performance. For more information about Micromuse's solutions for Federal, go to http://www.micromuse.com/sols/gov.html About Micromuse Micromuse Inc. (Nasdaq: MUSE) is the leading provider of ultra-scalable, realtime business and service assurance software solutions. The Netcool(R) software suite provides government and commercial organizations with the assurance that their IT systems are supporting and driving profits 24 hours a day. Unlike traditional infrastructure management systems, Netcool solutions provide realtime end-to-end visibility and accurate troubleshooting from a business perspective. Such business intelligence allows organizations to respond to problems quickly, streamline workflow processes and improve business uptime. Micromuse Defense and intelligence agency customers include U.S. Department of State, U.S. Air Force, U.S. Army, the Pentagon, NASA, U.S. Navy, Department of Energy, USDA, Department of Justice and the Army National Guard. Federal offices are located in Reston, VA. Headquarters are located at 650 Townsend Street, San Francisco, Calif. 94103; (415) 568-9800. The Web site is at www.micromuse.com. Micromuse and Netcool are registered trademarks of Micromuse Ltd. All other trademarks and registered trademarks in this document are the properties of their respective owners. Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties. The factors that could cause actual future results to differ materially from the forward-looking statements include the following: fluctuations in customer demand, the Company's ability to manage its growth (including the ability to hire sufficient sales and technical personnel), the risks associated with the expansion of the Company's distribution channels, the risk of new product introductions and customer acceptance of new products; the rapid technological change which characterizes the Company's markets, the risks associated with competition, the risks associated with international sales as the Company expands its markets, and the ability of the Company to compete successfully in the future, as well as other risks identified in the Company's Securities and Exchange Commission Filings, including but not limited to those appearing under the caption "Risk Factors" in the Company's most recent Quarterly Reports on Form 10-Q and on Form 10-K on file with the Securities and Exchange Commission and available on the Company's Web site.