Micromuse's Business Service Management Solutions Break New Ground in Realtime Service Assurance; Innovative Solutions Leverage

Micromuse Inc. (Nasdaq: MUSE), the leading provider of
ultra-scalable, realtime business and service assurance software today
announced that its BSM solutions have been enhanced with several
market-first capabilities to provide the most advanced solutions for
service visibility that are available today.
   These enhancements, which are made possible with the release of
Micromuse's Netcool(R)/Realtime Active Dashboards(TM) v3.0 and
Netcool(R)/Application Discovery(TM) v4.0 products, include greater
end-user navigation of services, deeper realtime measurement of
service health, extended discovery to include support for storage
networks, and enhanced dynamic access to all service-related
information.
   "Micromuse has extended native support for analysis of all key
event types that affect the health and performance of a service,
including availability, performance, security, and business events,"
said Craig Farrell, Micromuse's CTO. "While most tools limit service
impact analysis to pure IT-related events, Micromuse's advanced
analysis changes the state of a service based on any criteria that may
impact service health, including changes in business transaction
volume, changes in revenue, and the number of customers using a
service at a given point in time. This is relevant to both operations
staff that must troubleshoot problems, and line of business managers
with profit and loss responsibilities."
   The increased functionality made possible by recent product
enhancements permits Micromuse's BSM solutions to automatically
discover cross-application, system, network, and storage dependencies
to provide a dramatically detailed view of all relevant service
dependencies. Additionally, the solution is able to maintain highly
accurate service dependency models that are updated in realtime, not
imported into a static model.
   "The latest release of Netcool(R)/Realtime Active Dashboards(TM)
promises to set Micromuse apart as a leading innovator in the BSM
market," said Casey Kindiger, CEO and Managing Partner of generationE
Technologies. "Today we are working with some of the world's largest
financial services organizations and communications providers to fast
track their transformation towards BSM using Netcool solutions. My
clients and I look forward to continued innovation within the Netcool
product suite."
   These innovative BSM capabilities are essential to the combined
strength of Micromuse with the IBM Tivoli IT service management
portfolio, which provides a comprehensive approach to help customers
reduce the complexity of their IT environments, lower operational
costs, and address compliance mandates. Micromuse's enhanced BSM
solutions will be available next month with the following product
advancements:

   Netcool(R)/Realtime Active Dashboards(TM) v3.0

   --  Realtime Business Metrics - a unique approach to collecting
        distributed data and calculating key performance indicators.
        Data sources include: databases, message busses, CRM, ERP, Web
        services, custom and legacy applications, as well as events.

   --  Active Service Navigation - aligns all moving parts of a
        service model in realtime to drive a live scorecard providing
        business and operational users with key performance indicators
        of service health. Scorecard content is updated in realtime
        and driven from any mix of data sources, including events,
        process workflow, and business activity sources. The scorecard
        views reflect the dynamic nature of a service, adapting in a
        manner that is relevant to both the service and end-user
        perspective.

   --  Dynamic Federated Information Model(TM)- leverages patented
        technology to actively collect dependency information from
        distributed data sources in realtime and dynamically updates
        the service model to assure accuracy. This delivers several
        key benefits when compared to competitive offerings, including
        allowing for the use of existing investments in CMDBs and
        discovery tools, enabling greater service model scalability,
        and assuring highly accurate service impact and root cause
        analysis.

   --  Universal Event Model - greatly extends impact analysis
        capabilities by collecting and monitoring for events and
        business activity from any source, including databases, Web
        services, CRM, ERP, and a variety of other sources. Further,
        its universal event support permits any type of business
        event, as well as availability, performance, and security
        events, to be processed and used to determine the true health
        and performance of a business service.

   Netcool(R)/Application Discovery(TM) 4.0:

   --  Storage Network Discovery - supports the discovery and mapping
        of storage area networks providing greater service dependency
        visibility.

   --  Operational Portal - allows the integration of additional
        configuration and device data from third party sources,
        extending the discovered application topology. The operations
        portal delivers full flexibility to customize native discovery
        information and enhance that information with relevant
        external data or user defined data.

   Benefits of Micromuse's BSM solutions include:

   --  Automated service impact and root cause analysis,
        bi-directional trouble ticket integration and right click
        access to change, configuration, and other vital intelligence
        streamlines service support processes, assures shorter
        mean-time-to-resolution and improves service availability.

   --  A single effective interface delivers live service visibility
        for both service support and service delivery managers.

   --  End-to-end visibility through transactional monitoring and
        end-user simulation for both Web-based and client-service
        applications.

   --  Comprehensive Internet service transaction monitoring for
        critical Internet services like FTP and DHCP.

   --  Light-weight, all-in-one application and system agents for
        monitoring and collecting configuration details across key
        platforms and applications including: Windows, Linux, Unix,
        Sybase, SAP, and Lotus Notes. These agents are deployed
        automatically, which lowers maintenance requirements and can
        be integrated with Micromuse's Netcool(R)/Proviso(R) solution
        for comprehensive performance and capacity planning.

   Product pricing information, demo, and screen shots are available
upon request.

   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,
ITC DeltaCom, JPMorgan Chase, MCI, T-Mobile, and Verizon. Headquarters
are located at 650 Townsend Street, San Francisco, Calif. 94103; (415)
568-9800. 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. 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.

   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 characterizes 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.