BMC Software Expected To Surpass Third Quarter Earnings Expectations.

Business Editors & High-Tech Writers

HOUSTON--(BUSINESS WIRE)--Jan. 3, 2001

BMC Software Inc. (Nasdaq:BMCS), the leader in ebusiness systems management, announced today that it expects to report third-quarter fiscal year 2001 revenues in a range of $375 million to $380 million. Diluted earnings per share, excluding special charges and amortization of goodwill and intangible assets and including a $.02 one-time gain, are expected to be in the range of $.20 to $.22. These estimates are above the guidance provided by the company in October.

The company's complete financial results will be reported after the market closes on Thursday, January 18th. The company has scheduled a conference call from 4:00 - 5:00 p.m. Central Standard time on January 18th to provide details of these results. Interested parties may access the call as follows:

    Via telephone:

    In the United States: 800-680-9685; passcode is BMC Software

    International parties: 334-260-0508 or 334-323-9854; passcode is
                           BMC Software

    Via the Internet: www.bmc.com

A replay of the call will be available at www.bmc.com one hour after the live call ends.

About BMC Software

One of the world's largest independent software vendors, BMC Software delivers the most comprehensive ebusiness systems management software with the fastest guaranteed implementation. This Service Assurance(TM) strategy enhances the availability, performance and recoverability of companies' business-critical applications. Companies can use this management methodology to demonstrate their ability to deliver optimal service to their customers and partners by joining BMC Software OnSite(TM), a certification program which includes solution implementation and regular HealthChecks performed by BMC Software Professional Services.

BMC Software is a Forbes 500 company and a member of the S&P 500, with fiscal year 2000 revenues exceeding $1.7 billion. The company is headquartered in Houston, Texas, with offices worldwide. For more information please visit BMC Software's Web site at www.bmc.com, or call 800-841-2031 or 713-918-8800.

Learning Universe

Join BMC Software for a global gathering of top executives, managers and technical staff from around the world at its annual global user conference, Learning Universe, June 3 - 7, 2001 at the Orlando World Center Marriott Resort and Convention Center in Florida. Show attendees will gain valuable insight on attaining end-to-end service level management. Additionally, members of the media will have the opportunity to meet one-on-one with BMC Software's senior executives. To register today, see updates and get a full description of the sessions and curriculum for Learning Universe 2001, visit www.bmc.com/learninguniverse/ or call 1-800-254-1420.

The preliminary financial estimates and statements concerning BMC Software's future prospects contained in this press release are "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. The preliminary estimates of revenues, expenses, net earnings and earnings per share contained in this press release are subject to change. BMC Software will report final financial results for the December 2000 quarter after it has had additional time for the collection and compilation of additional financial data. The final financial results for the December 2000 quarter could be materially different from the estimates in this press release. Numerous important factors affect BMC Software's operating results and could cause BMC Software's actual results to differ materially from forecasts and estimates or from any other forward-looking statements made by, or on behalf of, BMC Software, and there can be no assurance that future results will meet expectations, estimates or projections. These factors include, but are not limited to, the following: 1) BMC Software's revenues and earnings are subject to a number of factors, including the significant percentage of quarterly sales typically closed at the end of each quarter, that make estimation of operating results prior to the end of a quarter extremely uncertain; 2) BMC Software's financial growth depends on the continued success of PATROL and other distributed systems products; 3) competition for BMC Software's products is intense and continues to increase for both the distributed systems and the mainframe database utility products; 4) international results have been volatile over the last two years; 5) BMC Software continues to depend on large enterprise license transactions as an integral part of its core mainframe business; 6) continued demand for significant additional mainframe MIPS capacity; 7) the uncertainties of whether new software products and product strategies will be successful; and 8) the additional risks and important factors described in BMC Software's quarterly reports on Form 10-Q and in its Annual Report to Stockholders on Form 10-K for the fiscal year ended March 31, 2000 and other filings with the SEC

BMC Software, BMC Software OnSite, the BMC Software logos, and all other BMC Software product or service names are registered trademarks or trademarks of BMC Software, Inc. All other trademarks or registered trademarks belong to their respective companies. (c) 2000 BMC Software, Inc. All rights reserved.