Due Diligence Completed for NetManage's Acquisition by Rocket Software, Inc.

Both Parties Agree to Extend Financing Date
CUPERTINO, Calif.--(Business Wire)--NetManage, Inc. (Nasdaq:NETM), a software company that provides
the fastest way to transform legacy applications into new Web-based
business solutions, and Rocket Software, Inc. (www.rs.com), a
Boston-based privately held corporation ("Rocket") developer of
Enterprise Infrastructure products, today jointly reported that the
due diligence has been completed for NetManage's acquisition by Rocket
Software.

Section 5.3(h) of the Agreement and Plan of Merger (the
"Agreement") between NetManage, Inc., ("NetManage") and Rocket
required, as a condition of closing of the acquisition of NetManage by
Rocket, that Rocket complete business, technical, legal and financial
due diligence on NetManage and its products and to determine whether
the results of that investigations were acceptable to Rocket.
Accordingly, the closing condition set forth in Section 5.3(h) of the
Agreement was effectively waived according to its terms effective as
of January 18, 2008.

Pursuant to Sections 5.3(f) and 5.3(g) of the Agreement, Rocket
had the right to terminate the Agreement on or prior to January 18,
2008 if (i) it had not received the consent of Wells Fargo Foothill,
Inc. ("WFF") regarding the closing of the transaction or (ii) it had
not obtained an agreement for financing from WFF on terms acceptable
to Rocket, in its sole discretion. NetManage and Rocket agreed on
January 18, 2008 to amend the Agreement to extend the date by which
Rocket must terminate the Agreement or waive these conditions to
February 8, 2008.

"NetManage has successfully passed Rocket's due diligence
investigation. Following Rocket's recommendation, discussions have
been held with their bankers. In the conversations, NetManage learned
that more time will be required to syndicate the financing," said Zvi
Alon, NetManage's Chief Executive Officer. "The NetManage Board
determined that extending the time of the financing contingency will
be in the best interest of shareholders and Rocket and NetManage
remain committed to closing the contemplated transaction
successfully," he added.

About NetManage

NetManage, Inc. (NASDAQ:NETM), is a software company that provides
the fastest way to transform legacy applications into new Web-based
business solutions. More than 10,000 customers worldwide, including
the majority of the Fortune 500, have chosen NetManage for mission
critical application integration. For more information, visit
www.netmanage.com.

About Rocket

Rocket Software, Inc. is a global software development firm that
builds and services Enterprise Infrastructure products for the world's
leading OEMs, networks and software companies. For more information,
visit www.rocketsoftware.com.

(C) 2007 NetManage, Inc., its subsidiaries, and its affiliates.
All rights reserved.

NetManage, the NetManage logo, the lizard-in-the-box logo,
Chameleon and Chameleon design, Incremental SOA, OnWeb, Librados,
RUMBA, ONESTEP, ViewNow, SupportNow, Librados, and OnWeb are either
trademarks or registered trademarks of NetManage, Inc. in the United
States and/or other countries. All other trademarks are the property
of their respective owners.

This press release contains, in addition to historical
information, forward-looking statements within the meaning of the safe
harbor provisions of Section 21E of the Securities Exchange Act of
1934. These forward-looking statements including statements regarding
improvement in the Company's competitive position, improvement in
financial results and business pipeline, the Company's positioning in
its market, and the progress and benefits of the Company's execution
on its business plan, involve risks and uncertainties. The Company's
actual results could differ materially from the results discussed in
the forward-looking statements. The factors that could cause or
contribute to such differences include, among others, that competitive
pressures continue to increase, that the markets for the Company's
products could grow more slowly than the Company or market analysts
believe, that the Company is unable to integrate or take advantage of
its acquisitions successfully, or that the Company will not be able to
take advantage of growth in the Company's target markets. Additional
information on these and other risk factors that could affect the
Company's financial results is included in the Company's Annual Report
on Form 10-K, Quarterly Reports on Forms 10-Q, current reports on
Forms 8-K and other documents filed with the Securities and Exchange
Commission. Furthermore, NetManage is under no obligation to (and
expressly disclaims any such obligation to) update or alter any of the
forward-looking statements contained in this press release whether as
a result of new information, future events or otherwise, unless
required by law.

Although Rocket continues to discuss both the consent and an
agreement for financing with WFF, there can be no assurance that
Rocket will be able to obtain such consent or such an agreement prior
to February 8, 2008. Accordingly, there can be no assurance that
Rocket will not ultimately elect to terminate the Agreement.

The Blueshirt Group
Brinlea Johnson, 415-217-7722 (Investors)
brinlea@blueshirtgroup.com
Alex Wellins, 415-217-7722 (Investors)
alex@blueshirtgroup.com

Copyright Business Wire 2008