VERITAS Software Corporation (Nasdaq: VRTS) announced today its continued leadership in the non-array-based storage management software market, continuing its double-digit lead over the next closest competitor in 2004 based on new license revenue. According to a new market research report from analyst firm Gartner, VERITAS led the $3.78 billion non-array/switch-based software market with 27.5 percent of market revenues in 2004. The report also confirms that VERITAS increased its leadership in two segments of the market, core storage management and backup and recovery software. VERITAS also achieved strong growth in the archiving, replication and storage resource management markets.

In addition to its leadership in the overall non-array-based storage software market, VERITAS has retained its leadership or shown significant growth in the following segments:

- Core Storage Management: VERITAS was No.1 in the core storage management category in 2004, with 31.5 percent market share based on new license revenue of a broad product category that includes file systems, volume management, disk utilities, access and path management software.

- Backup and Recovery: VERITAS increased its market share leadership in the overall data protection market, even as its 8.2 percent year-over-year growth outpaced the industry average of 5.6 percent growth. VERITAS NetBackup and Backup Exec software constituted 46 percent of the 2004 worldwide market for backup and recovery on distributed platforms, a Gartner definition for all operating systems outside of mainframes.

- Archiving, Replication and Storage Resource Management: VERITAS also showed strong growth in several key emerging markets, including hierarchical storage management (HSM) and archiving, replication and storage resource management market segments. VERITAS HSM and archiving software license revenues grew 75 percent from 2003 to 2004; replication grew 16 percent, while storage resource management software grew nearly 69 percent in the same timeframe.