Company Profile
BMC Software, Inc. [NYSE: BMC], is the leading provider of enterprise management solutions that assure business availability - maintaining and optimizing business-critical systems with automated infrastructure management and unique service management capabilities.

BMC Software is a member of the S&P 500, with fiscal year 2001 revenues exceeding $1.5 billion and offices worldwide. For more information, please visit BMC Software's Web site at www.bmc.com.

Company Mission
Assuring Business Availability™ through enterprise management solutions that rapidly implement and deliver value.

Corporate Background

• Founded in September 1980
• Initial public offering in August 1988
• Corporate headquarters located in Houston, Texas
• International headquarters located in Amsterdam, The Netherlands
• Research and development offices located in Houston and Austin, TX; San Jose, CA; Conyers, GA; Waltham, MA ; Herndon, VA; Singapore; and Tel Aviv, Israel
• Remote office dedicated to the federal market in the Washington D.C. area
• More than 6,800 employees worldwide
• Reinvests an average of 25 percent of revenues into R&D and support annually
• Member of S&P 500
• Products sold through direct sales and indirect channels including resellers, system integrators and original equipment manufacturers
• Operates international offices in Argentina, Australia, Austria, Belgium, Brazil, Canada, China, Denmark, Finland, France, Germany, Hong Kong, Hungary, Ireland, Israel, Italy, Japan, Korea, Mexico, The Netherlands, Norway, Poland, Portugal, Singapore, South Africa, Spain, Sweden, Switzerland, Turkey, United Arab Emirates, and the United Kingdom
• Geographic sales centers divided into Europe/Middle East/Africa; Asia-Pacific; Americas regions
• Market coverage in more than 50 countries
• Selected two years in a row as one of "100 Best Places To Work" by Fortune magazine (Fortune, January 17, 2000)
• Topped Forbes Global magazine's "A List" of software companies (Forbes Global, January 10, 2000)
• Named by Fortune magazine as one of "America's Most Admired Companies" (Fortune, February 21, 2000)
• Named by Mademoiselle magazine as one of "America's 25 Best Places to Work" (Mademoiselle, November 2000)
• Ranked 6th among software-only vendors worldwide, and 15th in the world in Software Magazine's 2000 Top 100 Software Companies

• Total revenues: Fiscal 2001 -- $1,504,000,000
• Net earnings: Fiscal 2001 -- $198,300,000

Commitment to Innovation

• Hold 33 software technology patents
• Pioneered the concept application service assuranceâ
• Industry's first application management solution provider via PATROL
• First ISV (independent software vendor) to deliver tools for IBM's IMS and DB2 databases
• First software vendor to offer a comprehensive management solution for B2B exchanges and extended enterprises
• First company to deliver an entire storage management solution that directly links applications and storage through its Application-Centric Storage Management™ initiative
• Invented data stream optimization -- ensuring that the movement of data from one location to another (e.g. from server to client) is fast, steady and continuous through application and data management
• CONTROL-SA® solution suite recognized by GartnerGroup's Magic Quadrant research note as the leader in enterprise user management, the processes involved in enabling companies to ensure the security policies essential in today's e-business environment.
• SiteAngel™, a unique service that simulates and reports back on a customer's true end-to-end experience at a Web site by testing the performance and availability for each path
• Developed OnSite™, a global certification program that recognizes a company's commitment to meaningfully deliver and continually improve on the user experience as it relates to performance and availability

Industry Partnerships

• Comprehensive BMC Software Developer Connection, consisting of more than 300 customers and commercial-software developers, to facilitate third-party development of products integrated with BMC Software products
• Distributed systems technology integrated with and resold by numerous system integrators, as well as database, application and hardware vendors
• Founder Application-Centric Storage Managementä Consortium. Members include Brocade Communications Systems, Inc., Cisco Systems, Crossroads Systems, EMC Corporation, Gadzoox Networks, Hitachi Data Systems, INRANGE, JNI, McDATA, Network Appliance, Nishan Systems, OTG Software and QLogic.
• PATROL technology partnerships with Compaq, Intel, Microsoft and Sybase
• Alliance partnerships with Compaq Computer Corp., EMC, IBM, Microsoft, Oracle, PeopleSoft, SAP and Sun Microsystems
• Founding member of WBEM (Web Based Enterprise Management), an industry standards effort that enables administrators to use any Web browser to manage disparate systems, networks and applications; other founders were Compaq, Intel, Cisco and Microsoft

• BMC Software is focused on serving the Global 2000 companies who are confronted with the task of managing a highly complex, heterogeneous and decentralized IT environment in a world that is constantly changing around them. To meet these demands and gain competitive advantage, these customers are utilizing BMC Software solutions to better meet the challenges they are facing and to enhance their return on investment. In addition, with the help of BMC Software's solutions, these customers are focused on providing the highest levels of service to their end-customers (both internal and external).
• Typical customer is a large enterprise, institution or supplier confronted with the task of managing a highly complex and decentralized IT infrastructure
• Approximately 9,600 worldwide customers
• More than 80 percent of Fortune 500 companies rely on BMC Software

Infrastructure Management - BMC Software's Infrastructure Management allows customers to automate the management of their IT infrastructure with lower costs and greater control. Through BMC Software's infrastructure management solutions, customers have the ability to monitor, manage, control, optimize and predict the impact of changes within their infrastructure. BMC Software's solutions for infrastructure management are scalable and can handle services no matter how large or complex it is. A key attribute of our infrastructure management is our unique application-centric approach.

Infrastructure Management capabilities include:

• Security Management
• Database Management
• Middleware Management
• Storage Management
• Platform Management
• Network Management

Service Management - BMC Software's Service Management solutions elevate the customer's ability to deliver business services with higher and more consistent service quality levels. A key requirement to ensuring consistent service quality is comprehensive infrastructure management. Equally important is the ability to proactively manage current service levels by application and user group, as well as the ability to predict the impact of business changes on service quality.

Service Management capabilities include:

• Service Level Management
• Business Integrated Scheduling
• Recovery Management
• Performance Management
• Capacity Planning
• Application Management

Integration with Service Management Methodology - BMC Software implements its solutions for Assuring Business Availabilityä through our Service Management Methodology. This is done by first assessing what is driving the change in our customer's business. The Service Management Methodology uses a 14-step roadmap to identify the status and maturity of enterprise management in the customer's environment.

Through the Service Management Methodology, combined with the BMC Software product capabilities, customers can leverage and optimize their enterprise to ensure their users achieve business level objectives that maximize their profitability.

Major Milestones

• Company founded with 5 employees and 2 products; 3270 OPTIMIZER is the world's first data stream optimizer for IBM mainframe-based networks 9/80
• BMC Software becomes first independent software vendor in DB2 market 3/87
• Initial public offering 8/88
• Acquired Patrol Software 1/94
• WBEM announced 7/96
• Completed acquisition of BGS Systems 3/98
• Completed merger with Boole & Babbage, Inc. 3/99
• Realigned and re-branded the company 4/99
• Completed acquisition of New Dimension Software 4/99
• Launched e-vailability™ initiative 10/99
• Launched BMC Software OnSite™ program 1/00
• Completed acquisition of Evity Inc. 4/00
• Announced industry's first comprehensive management solution for business-to-business commerce 8/00
• Completed acquisition of OptiSystems Solutions 8/00
• Pioneered introduction to Application-Centric Storage Management™ Initiative 10/00
• Completed acquisition of Sylvain Faust, Inc. 11/00
• Named Robert Beauchamp President and Chief Executive Officer 1/01
• Completed acquisition of Perform, SA 2/01
• Began trading on the New York Stock Exchange 3/01
• Named Garland Cupp Chairman 5/01

Corporate Officers

• Garland Cupp, Chairman
• Robert E. Beauchamp, President and Chief Executive Officer
• John Cox, Chief Financial Officer (Acting)
• Darroll Buytenhuys, Senior Vice President, Field Operations-International
• Jeff Hawn, Senior Vice President, BMC Ventures
• Stephen B. Solcher, Vice President, Treasurer
• Kirill Tatarinov, Senior Vice President, Chief Technology Officer
• Debra Tummins, Senior Vice President, Field Operations-Americas

Public Relations Contact: Jane McMillian, Senior Manager, Public Relations (713) 918-2036 jane_mcmillian@bmc.com

Investor Relations Contact Neil Yekell, Director of Investor Relations (713) 918-4233 neil_yekell@bmc.com