SAN FRANCISCO -- Micromuse Inc. (Nasdaq: MUSE), the leading provider of service and business assurance software, announced today that it has entered into an agreement to purchase Santa Monica, California-based Lumos Technologies, Inc. for up to $2.7 million in cash and the assumption of approximately $800,000 in outstanding debt. Approximately $1 million of the cash purchase price will be paid at closing, with the remainder payable in an earnout over the next four quarters. The acquisition is expected to provide Micromuse with sophisticated technology for managing Layer 1 networks, an existing base of over 100 equipment vendors who have signed license agreements with Lumos, and immediate opportunities to enrich existing Netcool® deployments within several major customers.“Managers of today’s large complex networks are under constant pressure to deliver operating and cost efficiencies, and therefore they need software that will extend and enhance the performance of legacy transport and access infrastructures. By incorporating Lumos’ technology into Netcool solutions, we are demonstrating our ongoing commitment to solving the financial and operational challenges of our core customers,” said Greg Brown, Micromuse’s Chairman and CEO. “At the same time, by acquiring a large installed base of telecommunications equipment vendors who embed Lumos’ software as the element manager for their hardware offerings, we are expanding the addressable market for the Netcool suite.”Lumos Technologies’ unique software solutions enable equipment vendors, service providers, and larger enterprises to manage the elements supporting their networks at the transport (Layer 1) and access layers. Lumos’ software extracts, normalizes, and correlates data streams from diverse network elements, allowing users to identify and resolve network problems quickly, monitor overall performance, configure specific network elements, collect and update inventory information, and forward relevant data to other OSS platforms and business systems. By integrating these capabilities with Netcool applications, Micromuse will be able to deliver the industry’s most comprehensive Layer 1 network visibility, event correlation, and problem resolution to current and future users of the Netcool suite.“We expect that combining Lumos’ software solutions with the Netcool® suite will be an extremely favorable development for our equipment vendor and service provider customers and will enhance the positive returns from their use of these products,” said Gerry Egan, Founder and President of Lumos Technologies. “The Lumos team is very excited about joining forces with the industry’s leading provider of service and business assurance software.”Micromuse anticipates that the acquisition will close prior to December 31, 2002.Lumos TechnologiesMicromuse Inc.