Opsware Acquires Rendition

Opsware Inc. (www.opsware.com), a provider of IT automation and utility computing software, today announced it has completed the acquisition of Rendition Networks, a privately held Redmond, Washington based provider of network automation software. Under the terms of the definitive agreement announced on December 2, 2004, Opsware acquired Rendition Networks in a cash and stock transaction.

"Today's announcement is another major milestone in Opsware's leadership in IT automation," said Ben Horowitz, president and CEO of Opsware Inc. "With the addition of network automation, Opsware manages the most costly parts of the data center environment. Demand for this powerful combination is evident based on the interest we've seen from within our own customer base, as well as by new prospects in need of a comprehensive IT automation solution."

Modern Web applications are complex composites of many server platforms, software components and network devices. They require a solution that can manage change holistically across the application infrastructure.

The integration of Opsware and Rendition will provide a breakthrough IT automation system that not only automates management of server, software and network components, but also the complete operations lifecycle of the Web-based applications these components support.

According to three separate reviews conducted in 2004, Rendition's network automation solution is consistently recognized as the best network automation product on the market.

Opsware will integrate the Rendition product into its IT automation solution, and will also continue to sell the server and network automation products separately.

The transaction is valued at approximately $30 million in Opsware cash and stock, consisting of $15 million in cash and approximately 2.68 million shares of Opsware common stock. In addition, Rendition's stockholders received a dividend from Rendition's existing cash of approximately $6 million at closing.