When completed, the BladeLogic acquisition will add a significant,
high-growth revenue stream to BMC, accelerating the company’s long- term
growth expectations for revenues, earnings, and cash flow.

“Organizations around the world will spend more than $140 billion
dollars this year running data centers,” said Bob Beauchamp, BMC’s
president and chief executive officer. “Automation is the only way IT
can bring this spending under control and still meet the reliability and
time-to-market requirements of their businesses. BMC’s acquisition of
BladeLogic will create the new IT Service Automation leader, unique in
its ability to provide these critical capabilities. It is a natural and
very significant next step in our vision of Business Service

BMC was the first enterprise software company to articulate the customer
need for Business Service Management (BSM), the most effective approach
for managing IT from the perspective of the business. This acquisition
will combine BMC’s BSM platform with BladeLogic’s award-winning data
center automation solutions. BladeLogic is the fastest growing company
in the fastest growing segment of IT management software.

Customers of the combined solution can expect a 90 percent improvement
in IT operational efficiency in 90 days, as well as address the critical
challenges of compliance, virtualization, and availability. In
contrast, competitors’ incomplete and disjointed portfolios typically
lead to partial solutions that demand expensive and lengthy professional
services engagements.

“When it comes to data center management, IT organizations have learned
the hard way that the architecture you start with is the architecture
you’re stuck with,” said Dev Ittycheria, BladeLogic’s president and
chief executive officer. “From day one, we focused on developing an
architecture specifically designed for managing today’s complex data
center. Our growth and competitive win rate is strong evidence that we
got this right. Our award-winning, next-generation architecture will be
a natural extension of BMC’s BSM platform.”

A highly integrated architecture is required to realize the potential of
Service Automation. BMC and BladeLogic’s solution portfolios are
already integrated, and customers have embraced the combined solution.
This is a continuation of BMC’s strategy to preserve the “purpose built”
capabilities of each company’s products, as demonstrated by BMC’s other
recent successful acquisitions.

“BMC has a history of smart, successful acquisitions because we focus on
customer needs, cultural compatibility and tight product integration,”
said Jim Grant, senior vice president and general manager of BMC’s
Enterprise Service Management business unit. “BMC is the only
independent software vendor able to meet the customer demand for
comprehensively architected and automated IT management solutions. For
us, this is a great opportunity to capitalize on the customer
dissatisfaction with our competitors’ offerings created by continued
product shortcomings and forced migrations.”

Over the last twelve months, BMC has acquired and successfully
integrated multiple companies whose performance continues to exceed

David Williams, research vice president, Gartner, recently reinforced
the importance of IT automation stating, “Automating the IT management
process continues to be a key objective for IT executives focused on
driving cost and complexity out of IT operations.*”

BMC expects this transaction to significantly accelerate the company’s
top-line growth, and from an EPS perspective, BMC expects it to be
slightly dilutive to non-GAAP earnings in fiscal year 2009, including
the write-down of deferred revenues and one time integration and
retention expenses, and accretive to non- GAAP earnings in fiscal year
2010. The acquisition will be conducted by means of a tender offer for
all of the outstanding shares of common stock of BladeLogic, followed by
a second-step merger. The board of directors of BladeLogic has
unanimously recommended that the stockholders of BladeLogic accept the
offer. The offer, which is expected to commence within the next ten
days, will be subject to customary conditions, including regulatory