BMC Software News Release:

BMC Software Completes Acquisition of BGS Systems

HOUSTON (March 27, 1998) - BMC Software, Inc. (NASD: BMCS), a leading developer and vendor of computer software solutions that improve the availability, performance and recoverability of business-critical applications and data, announced today it has completed the acquisition of BGS Systems, Inc. of Waltham, MA.

The strategic acquisition results in the industry’s first Application Service Assurance products, those that accurately measure, manage and improve an application’s performance. The BGS industry leading BEST/1^® performance analysis and prediction technology will be integrated with BMC Software’s suite of PATROL^® management products, the industry leader in event automation.

"The completion of the BGS acquisition is an historic day for BMC," said Max Watson, chairman, president and chief executive officer of BMC Software. "We are very pleased with the smooth integration to date of the two companies’ products and cultures. The BMC/BGS partnership is a win-win-win situation for everyone - our investors, our customers and our employees."

BMC Software exchanged approximately 3.6 million shares of common stock for all outstanding shares of BGS Systems. The transaction is valued at approximately $285 million. The transaction will be accounted for as a pooling of interests. As a result, the company’s board of directors has terminated its stock buy-back program.

BMC Software, Inc. (NASD: BMCS) is a worldwide developer and vendor of more than 160 software solutions that improve the availability, performance and recoverability of business-critical applications and data. BMC Software is the world’s 12th largest independent software vendor and a Forbes 500 company with calendar 1997 revenues exceeding $675 million. The company is headquartered in Houston, Texas with offices, distributors and agents in 50 markets worldwide. For more information on BMC Software call 800 841-2031 or (713) 918-8800.