Micromuse Selected by the ATLAS Consortium to Provide Service Management Capabilities for Multi-Year, Multi-Billion Pound U.K. Ministry of Defence Defence Information Infrastructure /Future/ Project.

SAN FRANCISCO -- Micromuse Solutions to Support British Military with Realtime Management, Automation, and Optimization of IT Services

Micromuse Inc. (Nasdaq: MUSE), the leading provider of ultra-scalable, realtime business and service assurance software, today announced that it will provide key elements of the service management and assurance components to the EDS-led ATLAS Consortium for Increment 1 of the UK Ministry of Defence (MoD) Defence Information Infrastructure (Future) (DII(F)) project. Micromuse - founded in England in 1989 and with its largest software development center based in London - was awarded the contract which is worth in excess of US$50 million. In the event that ATLAS is awarded DII Increments 2 and 3 by the MoD, this contract has the potential to be worth in excess of US$100 million to Micromuse, across all Increments, over the 10-year period.

The DII(F) project is intended to enable better communication between 340,000 military personnel and civil service staff and will connect and support 150,000 desktop PCs, laptops and other devices at permanent military sites, airfield and staging units, as well as battleships and submarines.

"End-to-end service visibility and proactive identification of service-affecting infrastructure faults is critical to the success of this project," said Martin Southgate, CEO, ATLAS Consortium. "Working within the overall ATLAS delivered solution, we believe that Micromuse's Netcool(R) solutions have the ability to scale to complex infrastructures within limited bandwidth environments. This solution will enable the ATLAS Consortium and MoD personnel to view the end-to-end status of the IT resources, initially supporting over 70,000 desktops (Increment 1) through a realtime view of the service infrastructure."

Micromuse's Netcool solutions install out-of-the-box and deploy rapidly to help the ATLAS Consortium meet the service level requirements. Micromuse's flexible software also meets the operational constraints of a deployed warfare environment, where the need for secure, reliable communications and mission assurance must be balanced with the practicalities of limited space and narrow bandwidth. Further, the Netcool solution's easy-to-use dashboard interface means that ATLAS and MoD personnel require limited training to use the application effectively.

"Micromuse Netcool solutions have been tried and tested in massive, complex military environments worldwide, including the US Navy, the US Air Force, the Pentagon, NATO and the Department of Homeland Security," said Lloyd Carney, Chief Executive Officer, Micromuse. "The Netcool solution has established itself as the de facto scalable end-to-end service management platform for service health, performance and status visibility."

About Micromuse

Micromuse Inc. (Nasdaq: MUSE) is the leading provider of ultra-scalable, realtime business and service assurance software solutions. The Netcool(R) software suite provides organizations 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 organizations to respond to problems quickly, streamline workflow processes and improve business uptime. Micromuse customers include BT, Cable & Wireless, Deutsche Telekom, EarthLink, ITCDeltaCom, J.P. Morgan Chase, MCI, T-Mobile, and Verizon. Headquarters are located at 139 Townsend Street, San Francisco, Calif. 94107; [phone]. The Web site is at www.micromuse.com.

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.

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