Contacts

Kim Dion
A&R Edelman
(650) 762-2927
kdion@ar-edelman.com

Serena Software to Acquire Project and Portfolio Management Leader

Pacific Edge is Key Addition to Change Governance Strategy

SAN MATEO, Calif. — October 4, 2006 — Serena Software, Inc., the Change Governance™ leader, today announced that it has entered into a definitive agreement to acquire Pacific Edge Software, Inc., a leading provider of Project and Portfolio Management (PPM) solutions.  With this acquisition Serena will extend its Change Governance offerings to enable customers to control the time, cost, and resource impacts of continuous business and IT change.

“We’ve long understood the integral role that PPM plays in helping IT organizations meet the demands on a business, and after extensive research are confident we are choosing the best solution in the marketplace to meet that need,” said Mark Woodward, president and CEO of Serena.  “Pacific Edge has proven their offering in recent competitive wins and has an extensive track record of customer success.  The addition of market-leading PPM capabilities to the Serena Change Governance offering enables us to provide unequaled customer value.”

Change Governance solutions from Serena enable companies to control change by fully integrating the development, implementation, and adoption of change processes and policies across the enterprise.  This process-centric approach bridges silos of change throughout an organization and creates a common frame of reference for business and IT that allows them to provide superior quality of service while reducing the costs and risks of implementing change.  To deliver on its Change Governance promise, Serena offers core products in Application Lifecycle Management (ALM), Operations Process Management (OPM), and now Project and Portfolio Management (PPM).  Key products in these categories include Serena® Dimensions™ 10, Serena TeamTrack®, and Pacific Edge Mariner®.

"We are thrilled to bring together two leading companies and believe our mutual customers will benefit greatly," said Mark Lazar, president and CEO of Pacific Edge.  "Both Serena and Pacific Edge are dedicated to providing customers with Change Governance solutions that enable IT to contribute greater value to the enterprise.  Together we are an unbeatable combination."

Pacific Edge Mariner, the Company’s flagship product that began shipping in October 2005, combines portfolio, project, resource, demand, and financial management into an integrated decision-support framework for an organization's PPM initiative.  As a powerful and practical-to-adopt solution, Mariner's capabilities can be configured to an organization's specific levels of IT process maturity. As IT organizations mature, more advanced Mariner capabilities can be enabled to drive additional value from their PPM initiatives.

Serena expects the acquisition to close by the end of October 2006. 

About Serena Software, Inc.
Serena Software, the Change Governance™ leader, provides software and services to more than 15,000 organizations around the world—including 96 of the Fortune 100 and 90 of the Global 100. Recognized by IDC as the largest software provider focused exclusively on change, Serena offers a new approach to change—Change Governance—that enables businesses to efficiently, consistently, and successfully control change across the enterprise. Serena helps companies capitalize on change to achieve transformative business results. Serena has more than 750 employees worldwide and is headquartered in San Mateo, California, with offices throughout the U.S., Europe, and Asia Pacific. For more information, please visit www.serena.com.

FORWARD-LOOKING STATEMENTS:
This press release contains forward-looking statements within the meaning of U.S. federal securities laws, including statements regarding the closing of the acquisition of Pacific Edge Software and the availability of Pacific Edge Software’s products and solutions, that involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied in this press release.  Such risk factors include, among others, satisfaction of the closing conditions to the transaction, the ability of Serena Software to successfully integrate the merged businesses, and customer demand for Pacific Edge Software’s products and solutions.  Additional information concerning these and other risk factors is contained in the Risk Factors section of Serena Software's most recent Form 10-Q filed with the Securities and Exchange Commission.  Serena Software assumes no obligation to update any forward-looking statement contained in this press release.

Serena and TeamTrack are registered trademarks of Serena Software, Inc. Change Governance and Dimensions are trademarks of Serena Software, Inc. All other products or company names are used for identification purposes only, and may be trademarks of their respective owners. Copyright © 2006 SERENA Software, Inc. All Rights Reserved.