Mission Critical Software Inc. –

HOUSTON – Mission Critical Software Inc., a provider of software products that manage Windows NT networks, went public August 5, offering 3.75 million shares at $16 apiece. The company’s stock priced at the high end of its $14 to $16 filing range.

Hambrecht & Quist, BancBoston Robertson Stephens, SoundView Technology Group and Charles Schwab & Co., Inc., underwrote the initial public offering, which left 13.2 million shares outstanding.

Venture investors included New Enterprise Associates Entities, Austin Ventures Entities, JMI Equity Fund III, International Capital Partners Inc., Zesiger Capital Group, Mission Critical Software I Inc., and ServerwareGroup plc.

Mission Critical Software provides systems administration and operations management software products for corporate and Internet-based Windows NT networks. Through its OnePoint product suite, the company enables users to simplify and automate key systems management functions.

The company had not been profitable until 1999, when it earned $342,000. Prior to that, it lost $3.3 million between July 1996 and June 1997 and $2.3 million in 1998.

Douglas Ayer, President and Managing Partner of International Capital, has served as director since September 1996, followed by Scott Sandell, a partner of New Enterprise Associates. John Thornton, a general partner of Austin Ventures, joined the board in June 1997.

Mission Critical Software – Selected Financial

(in thousands, except per share data)

July 19, 1996 (inception) Year Ended June 30

to June 30, 1997 1998 1999

Total revenue 4,267 14,376 24,827

Net loss -3,323 -2,316 342

Net loss per share -1.44 -2.47 -0.25