BMC Software Leads the Way as First ISV to Offer Comprehensive Usage Pricing for S/390 Environments; Details New Pricing Philosophy.

HOUSTON--(BUSINESS WIRE)--May 19, 1999--

New Pricing Structure Offers Customers Increased Simplicity,

Flexibility and Budget Predictability While

Protecting Investments and Choices

As part of its commitment to make it even easier to do business with the company, BMC Software (Nasdaq:BMCS) today announced that it is the first independent software vendor (ISV) to offer comprehensive usage pricing for S/390 environments. In addition, the company also detailed its pricing philosophy that offers customers increased simplicity, flexibility and budget predictability while protecting customer investments and choices. Usage Pricing and the company's previously announced Value License Agreements (VLA) for distributed systems are two key components of this pricing philosophy.

The new philosophy protects S/390 customers' investments and also enables them to easily integrate products from the company's recent acquisitions of Boole & Babbage and New Dimension Software.

The new offering will be attractive to those customers that use 25 percent or less of their installed capacity for IMS or DB2(a) sub-systems. BMC Software's Usage Pricing is designed to make it easier for customers to put new workloads on S/390 platforms. This offering creates additional leverage for enterprise customers by providing aggregation of usage across their entire enterprise. Structurally, BMC Software's Usage Pricing is similar to IBM's S/390 Usage Pricing Charge model.

"We are excited about BMC Software's usage based pricing announcement," said Tom Rosamilia, vice president, S/390 Software Development, IBM(a) Corporation. "BMC Software's architecture closely maps to IBM's Usage Pricing model. Customers will welcome the fact that BMC Software has decided to use S/390's native measurement utility instead of requiring an additional tool. This announcement demonstrates that BMC views the S/390 platform as a strategic growth platform. BMC Software's initiative, coupled with IBM's initiatives, will make development of new applications on the S/390 platform significantly more attractive than before."

Several key elements of BMC Software's pricing offerings include:

Usage Pricing

-- addresses stable and new workload pricing problems for some S/390

customers -- addresses customers' need for a rental-type model -- based on usage of sub-system being supported by BMC Software

products -- no additional overhead caused by additional tool requirement -- simplified distributed systems pricing -- VLAs -- sets new standard for ease of administration and simplicity -- provides flexibility for hardware configuration -- offers protection against upgrade charges -- provides price increase protection for the term of the contract -- provides insurance against operating system or database change -- offers attractive financing

BMC Software further reinforces its commitment by offering:

-- Free ASA Essentials -- product upgrade for BEST/1PATROL Knowledge Modules -- Support of hardware technology enhancements (i.e. software

licensing on Hitachi VSF and Amdahl MSF)

"We are focused on becoming oering is a direct response to our customers' requirement for a structure that closely aligns price to value. ry leading utilities products."

"BMC Softwonal Data Corporation. "Combined with its VLA pricing for customers of its distributed solutions, the new Usage Pricing for S/390 customers addresses many of the problems with traditional software pricing models. We believe that the availability of Usage Pricing from both BMC Software and IBM will lead many S/390 customers to give serious consideration to adding new workloads on S/390."

BMC Software's Usage Pricing for S/390 systems will utilize usage information from the IBM-supplied Usage Report Program native in the S/390 operating system. The Usage Report Program measures sub-system usage by registering 24 hourly Central Processing Unit Service Unit measurements each day. The highest hour within the 24-hour day is used as the reference hour. All reference hours are then compared for the month. The fourth highest point is listed as the usage point for the month. Initial billing for BMC Software customers is based on usage data for a minimum of two months. The higher usage of the two months is used to set monthly pricing for the first 12-month billing period. Bills for subsequent years are based on the usage for the prior 12 months.

About BMC Software

BMC Software is the world's leading provider of management solutions that ensure the availability, performance, and recovery of companies' business-critical applications. They call this application service assurance, and it means that the applications companies and their customers rely on most stay up and running, around the clock. For more than 18 years, the world's leading companies have relied on BMC Software.

BMC Software is among the world's largest independent software vendors, a Forbes 500 company and is a member of the S&P 500, with fiscal year 1999 revenues exceeding $1.3 billion. The company is headquartered in Houston, Texas, with offices worldwide. For more information, visit BMC Software's Web site at http://www.bmc.com, or please call 800/841-2031 or 713/918-8800.

BMC Software Inc. is an Equal Opportunity Employer. BMC Software, the BMC Software logos, Assuring Business Availability, Boole & Babbage, New Dimension Software, BEST/1, COMMAND/POST Connect PATROL, COMMAND/POST, PATROL Knowledge Module and MAX/E are registered trademarks or trademarks of BMC Software Inc. in the USA and in other select countries. (R) and (TM) indicate USA registration or USA trademark. (a) IBM, and DB2 are registered trademarks or trademarks of International Business Machines Corp. Other third-party logos and product/trade names are registered trademarks or trademarks of their respective companies.