Quest Software and Microsoft Announce First License for Protocol Technology in European Licensing Program

Quest Software, Inc. (Nasdaq:QSFT) and Microsoft Corp.
(Nasdaq:MSFT) today jointly announced that Quest has become the first
licensee in the Microsoft Work Group Server Protocol Program (WSPP)
established following the European Commission's March 2004 decision.

Quest officials said the agreement to license Microsoft's protocol
technology will extend and enrich interoperability capabilities for
customers working across heterogeneous server environments. Quest
plans to develop innovative software solutions, incorporating
Microsoft protocols, which will provide customers with expanded
capability to integrate Unix, Linux and Java authentication systems
with Active Directory beyond what is available from Quest today.
Today's announcement is the latest step by Quest and Microsoft to
provide easy and effective ways to secure and manage user identities
across a heterogeneous IT infrastructure.

"Our mutual goal has been to ensure enterprise organizations
needing to manage a diverse infrastructure can do so in a practical
way and leverage their existing investments in technology and people,"
said Doug Garn, president, Quest Software. "The value of this
agreement is that Quest is now better positioned than ever to
implement truly interoperable solutions for customers that do not
require them to support and maintain multiple islands of technologies
and redundant processes."

As a WSPP licensee, Quest will have access to the communications
protocols that are implemented in Windows Server Operating Systems and
used by a Windows Work Group Server to deliver group and user
administration services (including Windows Domain Controller services,
Active Directory services, and Group Policy services) to Windows Work
Group Networks.

Microsoft developed the protocol licensing program to meet its
obligations under the European Commission's March 2004 decision, which
required Microsoft to expand upon the protocol licensing it already
offered under a U.S.-based licensing program. While there are 27
licensees in the U.S. program, Quest is the first company to license
protocols in the European program.

"This agreement represents a significant milestone for the WSPP
and demonstrates the momentum we are seeing in the industry around
platform interoperability," said Bob Muglia, Microsoft senior vice
president, Server and Tools Business. "Quest is a great partner and we
look forward to working together to make this program successful for
Quest and its customers around the world."

Garn added that both companies have been working together for a
number of years to make sure the right protocols are available to
enable a full and positive experience for Unix users and for
Unix-centric solutions. Quest is focused on providing simplified
identity management solutions for customers by using standards-based
methodologies and products such as Active Directory to integrate,
consolidate and optimize Windows and cross-platform infrastructures.

About Quest Software, Inc.

Quest Software, Inc. delivers innovative products that help
organizations get more performance and productivity from their
applications (http://www.quest.com/Application_Management), databases
(http://www.quest.com/database_management) and Windows infrastructure
(http://www.quest.com/windows_management). Through a deep expertise in
IT operations and a continued focus on what works best, Quest helps
more than 50,000 customers worldwide meet higher expectations for
enterprise IT. Quest's Windows Management solutions simplify, automate
and secure Active Directory (http://www.quest.com/active_directory),
Exchange (http://www.quest.com/exchange) and Windows
(http://www.quest.com/windows), as well as integrate Unix, Linux and
Java (http://www.quest.com/unix_linux) into the managed Environment.
Quest Software can be found in offices around the globe and at
www.quest.com.

About Microsoft

Founded in 1975, Microsoft is the worldwide leader in software,
services and solutions that help people and businesses realize their
full potential. Over the past three years, it has signed nearly 200
intellectual property licensing agreements demonstrating the value of
intellectual property and Microsoft's efforts through its IP licensing
program launched in December 2003.

Quest and Quest Software are registered trademarks of Quest
Software, Inc. The Quest Software logo and all other Quest Software
product or service names and slogans are registered trademarks or
trademarks of Quest Software, Inc. Microsoft is a registered trademark
of Microsoft Corp. in the United States and/or other countries. The
names of actual companies and products mentioned herein may be the
trademarks of their respective owners.