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MICROMUSE ACQUIRES NETWORK HARMONI - Netcool® Suite Further Enhanced with Realtime Application and System Management

  • 21 August, 2003 10:05

<p>SYDNEY, Australia, 21 August, 2003 – Micromuse Inc. (Nasdaq: MUSE), the leading provider of business and service assurance software, announced that it has acquired NETWORK HARMONi (NHI), a San Diego, California-based software company, for approximately $23 million in cash. The acquisition did not include any stock, debt or earnout components.</p>
<p>Micromuse’s acquisition of NHI culminates a successful business partnership that began in April 2002, when Micromuse and NHI entered into an OEM (original equipment manufacturer) reseller agreement. NHI’s HARMONi suite of intelligent agents provides the core data collection technology within Netcool®/System Service Monitors™ (Netcool/SSMs) and Netcool®/Application Service Monitors™ (Netcool/ASMs), which gather realtime information about distributed systems, servers and applications across the IT infrastructure. More than 90 Micromuse customers – in industries such as banking, manufacturing, retail, eCommerce, wireless and cable – currently use Netcool/SSMs and Netcool/ASMs to manage their distributed Windows, Linux and UNIX servers, web servers, databases and other key business applications.</p>
<p>“Micromuse already offers the industry’s most scalable and robust IT management platform to transform infrastructure data into realtime business intelligence. With the acquisition of NETWORK HARMONi, we are enriching the functionality of the entire Netcool suite,” said Lloyd Carney, Micromuse’s Chairman and CEO. “HARMONi agents deliver the most comprehensive data available on applications and systems, supplementing our historically strong focus on the network layer. By owning the data source at all three layers of the IT infrastructure, we help our customers to ensure IT availability, manage their end users’ experience, and monitor end-to-end business processes via a single, trusted management platform.”</p>
<p>NHI’s technology enables Micromuse to define and control realtime data collection across the entire IT infrastructure – at the application, system and network layers. By acquiring NHI, Micromuse can prioritise the delivery of new agents according to customers’ most critical requirements and also optimise agent design to enrich the value of other Netcool applications – such as Netcool/Impact™ and Netcool/SLA Manager™ – that deliver realtime business intelligence.</p>
<p>“Since our company’s founding in 1996, NETWORK HARMONi has focussed on building the best agent technology in the marketplace,” said Craig Farrell, Ph.D., NHI’s president, CEO, and Chief Technology Officer, who is joining Micromuse as Chief Technology Officer, effective immediately (See related media release above). “Our advanced agent technology for application and system monitoring, combined with Micromuse’s network-layer expertise and scalable, realtime management platform, creates a tour de force in the infrastructure software market. We are very excited to be joining with the industry’s leading provider of business and service assurance software.”</p>
<p>In addition to the extensive library of intelligent HARMONi agents, Micromuse will inherit NHI’s OpCenter product, a lightweight, centralised IT management and problem resolution system that is ideally tailored for mid-sized enterprise IT infrastructures. Micromuse will also assume several pending patent applications that have already been filed by NHI.</p>
<p>"Our business relies on lifesaving applications and the servers on which they run. Providing IT personnel with detailed performance and availability information about the realtime health of these systems demands a broad and dependable data source," said Rusty Sweet, head of Network/Telecommunication Infrastructure Services at Chicago's Northwestern Memorial Hospital. "The Netcool suite of application and system monitors helps support NMH's business by providing detailed metrics and status information that allow us to see when a fault is developing and help triage the problem to minimise downtime and maximise application availability. Over the last twelve months, our network has performed in excess of 99.999% availability, due in part to Netcool's proactive monitoring capability."</p>
<p>"As a recognised leader in IP solutions and provider of Web hosting services to customers in more than 170 countries, Verio relies on critical business applications and the servers on which they run, " said Craig Pennington, Hosting Operations Director, Verio Europe. "Netcool/SSMs provides a comprehensive, consolidated view of the network environment, enabling us to appropriately respond to alerts as they occur. Combined with the Netcool suite, the solution delivers centralised management of our network devices, systems and applications for greater ROI and reduced mean time to resolution. The ability to isolate why problems are occurring allows us to quickly hone in on and resolve service-affecting problems."</p>
<p>A replay of the conference call hosted by Micromuse is available by dialling +320-365-3844 (international) and entering access code 696098. The replay will be available from Thursday, 21 August at 5:30 AM EST until Thursday, 28 August at 1:59 PM EST. The replay will also be available as an archived audio file at From the web site home page, select the “Our Company” link, the “Investor Relations” link, and the “Audio Archives” link to access the web-based replay.</p>
NHI has been providing commercial software through its OEM and reseller relationships since 1996. NHI’s solutions include the HARMONi suite, a family of intelligent software agents that gathers data on the health and performance of mission-critical business applications and systems, and OpCenter, lightweight fault and performance management system that provides centralised IT monitoring and problem resolution for mid-sized enterprises. NHI employs approximately 40 people in San Diego, California and Perth, Australia.</p>
<p>About Micromuse
Micromuse Inc. (Nasdaq: MUSE) is the leading provider of business and service assurance software solutions. The Netcool® software suite provides organisations 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 organisations to respond to problems quickly, streamline workflow processes and improve business uptime. Globally, Micromuse customers include AT&amp;T, BT, Cable &amp; Wireless, Charles Schwab, Deutsche Telekom, Digex, EarthLink, GE Appliances, ITC^DeltaCom, J.P. Morgan Chase, T-Mobile and Verizon. Micromuse’s customers in Australia include Telstra Global Operations Centre, British Telecom Global Services - Asia Pacific, and Ericsson Australia - Network Operations Centre. Sydney is the regional headquarters for Micromuse Asia Pacific and includes sales, technical support and the administrative functions for the region. Micromuse is headquartered in San Francisco. For more information go to</p>
<p>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.</p>
<p>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 characterises 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.</p>
<p>For more information contact:</p>
<p>Amanda Scott-Kiddie
Kinetics Pty Ltd
+ 612 9976 6611</p>

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