BMC Software Expected to Exceed Fourth Quarter Revenue Expectations.

Business Editors/High-Tech Writers

HOUSTON--(BUSINESS WIRE)--April 5, 2001

BMC Software Inc. (NYSE:BMC), the leading provider of enterprise systems management, announced today that it expects to report fourth-quarter fiscal year 2001 revenues in a range of $412 million to $422 million. These estimates are above the upper range of the guidance provided by the company in January. License revenues increased sequentially from the third quarter across all major geographies. Sequential license revenue growth was driven primarily by the company's distributed systems solutions. Diluted earnings per share, excluding special charges and amortization of goodwill and intangible assets, are expected to be in the range of $.23 to $.25. The company expects to report fiscal year 2001 revenues in the range of $1.49 billion to $1.50 billion. Diluted earnings per share for the fiscal year 2001, excluding special charges and gains and amortization of goodwill and intangible assets, are expected to be in the range of $.77 to $.79.

In addition, the company is refining its organization and realigning its business model to more heavily focus on areas of the company that are strategic and critical to the business and to strengthen its financial performance. As a result, it is eliminating approximately six percent of the company's more than 7,300 employees worldwide. This decision was made based on several factors, including criticality to the business, productivity, strategic realignment and expense management. The action is across all divisions and geographies and affected employees will receive separation packages that include outplacement services. As a result of this action, the company will incur a one-time restructuring charge of approximately $14 million in the June quarter.

"I am extremely proud of the progress BMC Software made in the last two quarters of fiscal 2001. These results reaffirm that our customers view our solutions as critical to the success of their businesses," said Bob Beauchamp, president and CEO of BMC Software. "We are committed to delivering strong dependable financial performance to our shareholders. We felt that by combining these targeted reductions with the positive revenue growth momentum of the previous two quarters we will be ready to begin fiscal year 2002 on a firm foundation for revenue and earnings growth."

The company's complete financial results will be reported after the market closes on Tuesday, April 24th. The company has scheduled a conference call from 4:00 - 5:00 p.m. Central Daylight Time on April 24th 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: 334/323-9851; 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. To access the replay via telephone, interested parties may dial 800/858-5309 (in the U.S.) and enter access code: 40452 and pass code: 69321 or 334/260-0890 (international callers) and enter access code: 40452 and pass code: 69321.

About BMC Software

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 Forbes 500 company and a member of the S&P 500, with fiscal year 2000 revenues exceeding $1.7 billion and offices worldwide. For more information, please visit BMC Software's Web site at www.bmc.com.

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 March 2001 quarter after it has had additional time for the collection and compilation of additional financial data. These final financial results for the March 2001 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) the effects of workforce reductions, including possible organizational disruption, on BMC Software and its future earnings cannot be predicted; 2) a weakening of economic factors, particularly in the United States economy, may affect the overall demand for software and services which could result in decreased revenues or lower revenue growth rates; 3) BMC Software's financial growth depends on the continued success and acceptance of its existing and new software products; 4) competition for BMC Software's products is intense and continues to increase for both the distributed systems and the mainframe database utility products; 5) growth in BMC Software's mainframe revenues is dependent on continued demand for significant additional mainframe MIPS capacity; and 6) 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 undertakes no obligation to update information contained in this release.

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) 2001 BMC Software Inc. All rights reserved.