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BONITA SPRINGS, FL, JULY 10, 2002 - (http://www.ondemandsoftware.com) On June 28, 2002 VERITAS Software announced the spin-off of the WinINSTALL™ product family, the world’s leading software distribution product, to OnDemand Software, Inc. VERITAS will maintain an equity stake in OnDemand and will work closely with OnDemand to maintain customer satisfaction and market leadership.

In 1994 OnDemand led WinINSTALL™ to prominence and has been re-launched to guide the direction of WinINSTALL™. WinINSTALL™ will continue to address some of the largest IT problems that still exist today, including the issues surrounding packaging installations and installing applications on corporate network desktops.

The change and configuration management market is estimated by analysts, such as IDC, to be a billion dollar market and growing significantly over the next few years.

In the terms of the spin-off, OnDemand will take over all sales and marketing activities as well as development, technical support, training and professional services efforts for the WinINSTALL™ product family. Customers and channel partners will benefit from the original executive team members that were with OnDemand in the past and that have extensive knowledge of the network management market. The entire VERITAS WinINSTALL™ development team will now continue with OnDemand as well as members of the technical support and professional services teams. This continuity will allow OnDemand to maintain a high level of customer service.

OnDemand will operate a 100% channel sales and marketing operation building on a worldwide channel of distributors, resellers, VARs and OEM partners that continue to market and sell WinINSTALL™ worldwide. “Not only are we excited about having WinINSTALL™ back in the OnDemand family, we’re very excited about working with all of the WinINSTALL™ channel partners worldwide,” says Jack Palmer, OnDemand CEO. Palmer also adds, “The opportunity for growth in the client change and configuration management market is great.” Mel Raff, the author of WinINSTALL™ will continue to lead all product development operations, Steve Campbell will lead all company finance and corporate operations and Bill Somerville will lead development research and all IT functions. Raff, Campbell, Somerville and Palmer were all executives with the original OnDemand. The company’s new headquarters are in Bonita Springs, FL with additional offices in Takoma Park, MD and Arroyo Grande, CA.

About the WinINSTALL™ Product Family

WinINSTALL™ is used by over 5,000 companies worldwide and currently supports millions of corporate desktops. A light version of WinINSTALL™ was selected by Microsoft as the re-packager for Windows 2000 and has been integrated with many of the leading network management platforms such as Microsoft SMS, CA Unicenter, and IBM Tivoli. It is one of the only client change management products that looks at software distribution from not just a packager and installation deployment concept, but from the management of how to build software installation packages and patches, how to install them and how to manage the success or failure of those installations once the change has taken place at the desktop. All of these functions take place from a single console, something not found in any other product today. “Exciting new features for WinINSTALL™ are under development that will continue to help IT professionals solve the problems that they face when introducing change to networked desktops while providing a huge return on investment and a reduced total cost of ownership associated with maintaining corporate desktops,” says Mel Raff. “This is an exciting market and an exciting time to continue to build products that are so needed,” says Raff.

More information on the WinINSTALL™ product family and OnDemand Software, Inc. can be found at www.ondemandsoftware.com or by calling 239/495-0541. Resellers may receive information on reseller programs and pricing by calling 239/495-0541 or e-mail sales@ondemandsoftware.com.

About OnDemand Software, Inc.

OnDemand Software, Inc. was originally established in 1994 as the developer and marketer of the WinINSTALL™ product family. In 1996, Seagate Software acquired OnDemand Software, which included the WinINSTALL™ product family and team. In 1999 VERITAS Software purchased Seagate Software.

The original OnDemand executive team, many whom came from VERITAS have formed a new company, again called OnDemand Software. The entire WinINSTALL™ product development team and many of the support and professional services teams have been retained.

OnDemand is committed to continuing the WinINSTALL™ product family’s leadership role in the software distribution and change management market. VERITAS will maintain an equity stake in OnDemand and will work closely with OnDemand to maintain customer satisfaction and market leadership.

Over 5000 companies worldwide, supporting approximately 25,000,000 desktops use the WinINSTALL™ product. OnDemand plans to bring a renewed focus to the WinINSTALL™ product family and distribution channel marketplace.