IRVINE, Calif., March 18, 2004 – Quest Software, Inc. (Nasdaq: QSFT), a leading provider of application management solutions, today announced that it has completed the acquisition of Aelita Software, a leading provider in systems management solutions for Microsoft Active Directory and Microsoft Exchange environments. Under the terms of the definitive agreement announced on January 28, 2004, Quest Software acquired Aelita in a transaction with a value of approximately $115 million in cash and assumed options. The definitive agreement also contemplates that Quest Software will grant additional stock options to certain employees of Aelita.

“This acquisition is a major milestone in the history of Quest and demonstrates our ongoing commitment to the Microsoft infrastructure management market segment and the growing number of customers who rely on Microsoft Active Directory and Exchange to operate their day-to-day business activities,” said Vinny Smith, chairman and CEO, Quest Software. “The combined technology, resources and expertise of Aelita and Quest will enable us to deliver the comprehensive set of solutions customers require to feel confident in the availability and security of their critical Microsoft systems and the productivity of their support staff.”

The acquisition of closely-held Aelita significantly expands Quest Software’s product portfolio of solutions to simplify, automate and secure today’s increasingly complex Microsoft infrastructures. Quest Software plans to leverage Aelita’s strengths in migration, event log management, and backup and recovery in combination with its own expertise in the areas of performance management, troubleshooting, and Active Directory and Exchange management. The resulting product portfolio is expected to be one of the most comprehensive sets of products in the industry for Microsoft systems management.

In May 2004, Quest Software plans to announce further details on the integration of Aelita, including a product integration roadmap and support strategy. Quest Software will provide its financial guidance related to the Aelita acquisition during its first quarter 2004 earnings conference call.