QSFT: Quest Software Receives Nasdaq Notice Regarding Delayed Filing of Form 10-Q

Quest Software, Inc. (Nasdaq: QSFT) today announced that the company received a Nasdaq Staff Determination letter on August 14, 2006 indicating that the company is not in compliance with the continued listing requirement set forth in Nasdaq Marketplace Rule 4310(c)(14). The letter was issued in accordance with Nasdaq procedures when the company did not file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2006 on or before the SEC’s filing deadline. Quest Software securities are, therefore, subject to delisting from the Nasdaq Global Select Market. Quest Software will request a hearing before a Nasdaq Listing Qualifications Panel to review the Staff Determination. Pending a decision by the Panel, Quest Software’s common stock will remain listed on The Nasdaq Global Select Market. There can be no assurance that the Panel will grant the company’s request for continued listing.

As previously announced, a special committee of independent directors was formed to conduct an investigation of Quest Software’s historical stock option grant practices and related accounting. The investigation is being conducted by a special committee of independent directors, with the assistance of independent legal advisors and independent forensic accounting consultants. On July 5, 2006, Quest Software announced that its management and the audit committee of Quest Software’s board of directors, in consultation with the special committee, had determined that Quest Software would restate its annual and interim financial statements for the periods from 2000 through 2005 and for the quarter ended March 31, 2006. While Quest Software can not currently predict the ultimate timing for the completion of the investigation and related restatement, the company intends to file its Quarterly Report on Form 10-Q for the period ended June 30, 2006 as soon as practicable after the special committee's investigation is concluded and all required amendments to prior period reports have been filed with the SEC.


About Quest Software, Inc.
Quest Software, Inc. delivers innovative products that help organizations get more performance and productivity from their applications, databases and Windows infrastructure. Through a deep expertise in IT operations and a continued focus on what works best, Quest helps more than 18,000 customers worldwide meet higher expectations for enterprise IT. Quest Software can be found in offices around the globe and at www.quest.com