Micromuse Inc.

Shareholders filed a securities fraud class action lawsuit in the U.S. District Court for the Northern District of California against the real time business and service assurance software company and a number of its current and former officers related to the restated financial statements filed May 17, 2004. Under the terms of the settlement, the lawsuit will be terminated in exchange for a payment that will have no material adverse financial impact on the Company, as it will be covered largely by the Company's insurance policies. (Jun-27-05) [BUSINESS WIRE]