Segue Software Promotes Michael Sullivan to Chief Financial Officer

Segue Software, Inc. (NASDAQ-SCM: SEGU), a leader in
Software Quality Optimization(TM) (SQO(TM)), today announced that
Michael Sullivan has been promoted from Vice President of Finance to
Chief Financial Officer, effective August 15, 2005. Douglas Zaccaro,
who has served as Segue's Chief Financial Officer since 2000, will
become Senior Vice President and Treasurer, responsible for legal
affairs, investor relations and the treasury function.
   "Mike Sullivan's financial skills and in-depth company knowledge
will enable us to effectively manage the Company's financial resources
as we work to achieve our long-term goals and objectives. Doug Zaccaro
has done an admirable job as our Chief Financial Officer, working with
me and the senior management of Segue to turn the Company's operations
around and stabilize our financial footing," said Joseph Krivickas,
president and chief executive officer. "We are very pleased that our
organization can continue to count on Doug's expertise in his new role
with the Company."
   Mr. Sullivan, 40, joined Segue Software in 2000 as North American
Controller. He was promoted to Corporate Controller in 2002 and, in
2004, to Vice President of Finance. Mr. Sullivan brings 17 years of
accounting and financial management experience within several
different industries, serving in increasingly responsible roles such
as controller, corporate controller and CFO. Mr. Sullivan has a BA
degree in economics from Dartmouth College and an MBA from
Northeastern University.

   About Segue Software

   Segue Software, Inc. (NASDAQ-SCM: SEGU) is a global expert in
delivering solutions to define, measure, manage and improve software
quality throughout the entire software application lifecycle. Segue's
Software Quality Optimization(TM) (SQO(TM)) solutions help companies
reduce business risk, ensure the deployment of high quality software
and increase return on investment. Leading businesses around the
world, including many of the Fortune 500, rely on Segue's innovative
Silk family of products to protect their business service levels,
competitive edge and brand reputation. Headquartered in Lexington,
Mass., with offices across North America and Europe, Segue can be
reached at [phone] or www.segue.com.

   Segue and the Segue logo are registered trademarks and Software
Quality Optimization and SQO are trademarks of Segue Software, Inc.
All other company names and products are either trademarks or
registered trademarks of their respective owners.

   This press release may contain forward-looking statements, such as
our financial projections for 2005 and beyond. Forward-looking
statements are statements that contain predictions or projections of
future events or performance, and often contain words such as
"anticipates", "can", "estimates", "believe", "expects", "projects",
"will", "might", or other words indicating a statement about the
future. The Company notes that any such forward-looking statements are
subject to change and are not guarantees of future performance, and
that actual results may differ materially from any such predictions or
projections, based on various important factors and including, without
limitation, the ability of the Company to continue to achieve positive
cash flow and sustain profitability in this difficult economic and
business climate; the ability of the Company to close large enterprise
orders; the Company's transition to a new management team; the timing
and success of introductions of our new products; market acceptance of
recently-introduced products (including SilkCentral Test Manager 8.0)
and updated releases; the effectiveness of our additional distributors
and resellers; continued growth in license revenue; new products and
announcements from other companies; the Company's continued access to
capital; and changes in technology and industry standards. Additional
information on the factors that could affect the Company's business
and financial results is included in the Company's periodic reports
filed with the Securities and Exchange Commission.