Nimsoft Press Release

Goldman Sachs Leads $12 Million Investment in Nimsoft

Fastest Growing Systems Management Company Announces Second Round of Funding

Redwood City, Calif. – October 7, 2008 – Nimsoft, the fastest growing systems management company, today announced that the company has completed a funding round of $12 million led by new investor Goldman Sachs with follow on investments from Series A investors JMI Equity and Northzone Ventures. The company will use the funds to continue its growth and help achieve its vision of becoming the world’s leading enterprise systems management software company.

“Nimsoft has an innovative, well-run business model with a strong management team,” said David Campbell, Vice President, Principal Investment Area, Goldman Sachs. “To operate modern data centers, it is critical for IT customers to have robust systems management software that is easy to deploy and maintain to ensure they are providing the right level of service to their businesses. Nimsoft has a proven track record of delivering this functionality to both large and small enterprises and managed service providers (MSPs) around the world. We are pleased to invest in Nimsoft to enable further growth as a leading enterprise systems management provider.”

“Despite the tough economic times, we were overwhelmed with interest from multiple prestigious investors,” said Gary Read, president and CEO of Nimsoft. “An investment from Goldman Sachs is further recognition of the strength of our business model, product performance and future business opportunity. With the global market experience and formidable resources of Goldman Sachs added to the existing knowledge of our initial investors JMI Equity and Northzone Ventures, we are confident we will continue to grow a highly successful business.”

According to Gartner Dataquest, the worldwide revenue for IT operations management software was $12.9 billion in 2007, representing 13.5 percent annual growth.1 Nimsoft extended its position in the Gartner “Magic Quadrant for IT Event Correlation and Analysis, 2007” and has expanded to 700 customers in 30 countries. With revenue growth of 534 percent over the past four years, Nimsoft is the fastest growing systems management company in the world due largely to its easy-to-use performance and availability monitoring software that offers a fast and compelling Return on Investment.

An InformationWeek product review ranked Nimsoft the “Best of the Best” among nine application performance management (APM) solutions. APM is a critical segment of systems management because it monitors the performance of the customer experience – in addition to core IT infrastructure performance. InformationWeek reviewers noted Nimsoft was “a real leader” in service level management for its “flexible and robust SLA reporting engine” and ability to “report SLA performance granularly … which many APM tools are unable to do.”

Lead Goldman Sachs investor David Campbell will join the Nimsoft board of directors and provide strategic counsel for the company’s ongoing development and growth. Peter Arrowsmith of JMI Equity and Torleif Ahlsand of Northzone Ventures will continue to serve on the Nimsoft board of directors.

About Goldman Sachs
The Goldman Sachs Group is a bank holding company and a leading global investment banking, securities and investment management firm. Goldman Sachs provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high net worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.

About JMI Equity
JMI Equity is a private equity firm exclusively focused on investments in growing software and business services companies at all stages of their lifecycles. Founded in 1992, JMI has invested in more than 95 companies throughout North America and has approximately $1.3 billion of committed capital under management. JMI provides the first institutional capital to self-funded companies, partners with management teams to acquire or recapitalize market leading companies and selectively makes investments in early-stage companies. Representative investments include Blackbaud, DoubleClick, Kronos, Nimsoft and Unica. For more information on JMI, visit www.jmiequity.com.

Northzone Ventures
Northzone is a leading European venture firm with a Nordic stronghold. Northzone focus on high-growth technology companies, and has invested in more than 70 companies since its inception in 1996. Northzone has $500 million of committed capital under management, and offices in Oslo, Stockholm and Copenhagen, Investments include Stepstone, Nextgentel, Mamut, Funcom, Revolt Technology, Trolltech and Pricerunner. For further information, visit www.northzone.com

About Nimsoft
Nimsoft provides next generation performance and availability monitoring solutions for the complete physical and virtualized IT infrastructure. The Nimsoft solutions redefine the standards for ease of use and speed of deployment - providing outstanding return on investment and unparalleled customer satisfaction. Approximately 700 customers in 30 countries rely on Nimsoft solutions to monitor their IT based business applications and services. These customers include mid-market and global organizations, such as Barclays Capital and Amway Corporation, Bay Area Rapid Transit, Ladbrokes, MTU Aero Engines, TriNet, TRW Automotive, and hundreds of leading managed service providers such as CDW Berbee, Easynet and Rackspace Managed Hosting. For more information, visit www.nimsoft.com.

Nimsoft and the Nimsoft logo are trademarks or registered trademarks of Nimsoft, Inc. All other company and product names may be trademarks or registered trademarks of their respective companies.

1Gartner Dataquest, IT Operations Management Software Market Share Analysis, Worldwide, 2007, dated June 18, 2008, written by Rene Millman.

For more information:

United States
Brian James
Nimsoft, Inc
Phone: +1 650 931 1121

EMEA
Ajay Nawathe
Nimsoft Ltd.
Phone: +44 1932 577 770

Scandinavia
Dag Lund
Nimsoft AS
Phone: +47 2262 7149

"While building the world class NOC at IBBS, we were determined to find a network monitoring solution that addressed of all our needs, and most importantly, it was easy to install and was priced competitively."

"The Nimsoft solution was quite simply a perfect match. It is rich in functionality, easy to get installed and competitively priced. Already, our service level reports have yielded tremendous success and customer satisfaction."

Cedric Brown, Network Operations Director, IBBS