FOR IMMEDIATE RELEASE

MICRO FOCUS CALLS FOR RADICAL CHANGE TO IT ASSET VALUATION

-Micro Focus/KPMG research highlights investors in the dark over the value of businesses' IT assets; INSEAD study to provide actionable methods for companies to uncover value in technology investments-

NEWBURY, England, May 1, 2007 - Micro Focus® (LSE.MCRO.L), a leading provider of enterprise application management and modernization solutions,today calls on global organisations to acknowledge the true value of hidden IT assets when calculating the total value of the business. Results of research by Micro Focus and KPMG highlight how leading companies do not disclose the true value and potential of their current software application assets. Also today, Micro Focus announces that it has commissioned INSEAD, a leading international business school, to study the value of legacy IT assets and investigate approaches to calculating their value. Both announcements were made at Micro Focus World, in Orlando, Florida, the first global forum dedicated to the area of Enterprise Application Modernization.

Micro Focus asked KPMG to research the disclosures made in the accounts of a number of leading companies. Out of 70 corporations across six industry sectors, only six explicitly attribute any value to technology assets in their annual accounts.

"If businesses could find a way to show the fair value of their IT Infrastructure assets investors would be better informed," said Philip Adler, Director, KPMG. "Businesses may well make different investment decisions when renewing their systems. Enterprises' foundations are built on the assets they possess and IT assets are inherent throughout any business."

Micro Focus will be working with Soumitra Dutta, Professor of Information Systems at INSEAD, to develop the study into the valuation of critical IT application assets. The study will explore further the extent to which companies attempt to value

IT assets, and also will investigate best practices in this area. Organisations will benefit from a study that provides actionable routes to calculate and show the value of these assets.

"This is a fascinating area that merits further research," said Professor Dutta. "Companies in today's competitive business landscape are striving to demonstrate value to shareholders and customers. INSEAD very much looks forward to working with Micro Focus to explore how corporations today show the value of their technology assets, and assessing the opportunities for a more robust valuation of these assets in the future."

"This is a wake up call for companies across the globe," said Stephen Kelly, Chief Executive Officer, Micro Focus. "Companies often invest hundreds of millions of dollars each year on application software and yet the data shows that very few disclose any measurement systems to establish value or otherwise. If the asset was cash, you can bet the corporate CFO would receive weekly even daily updates. Our research with KPMG clearly shows that valuable IT assets do not register in corporate financial accounts. This implies large corporates are flying blind. Working with INSEAD we will develop ways to help companies value these vital assets which lie at the heart of every business and drive operational performance."

About Micro Focus

Micro Focusprovides innovative software that allows companies to dramatically improve the business value of their enterprise applications. Micro Focus Enterprise Application Modernization and Management software enables customers' business applications to respond rapidly to market changes and embrace modern architectures with reduced cost and risk. For additional information please visit www.microfocus.com.

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