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News Release

ON Technology Replaces Microsoft SMS at Top German Bank

Leading organization selects ON Command CCM to reduce costs
and enhance availability of business-critical applications

Waltham, MA, June 20, 2001 – ON Technology (Nasdaq NM: ONTC), a leading provider of remote software management solutions, announced today that Kreditanstalt für Wiederaufbau (KfW), one of Germany’s ten largest banks, has purchased ON Command CCM™ to centrally manage its 2,500-seat PC environment and automate the bank’s enterprise-wide migration to Windows 2000. ON Command CCM was chosen to replace Microsoft Systems Management Server (SMS) at KfW.

According to KfW, the bank’s move from Microsoft SMS to ON Command CCM was necessary because SMS lacks the critical ability to deploy operating systems, whereas ON Command CCM is able to deploy operating systems as well as applications. This is a significant advantage because it allows IT to manage the entire PC lifecycle from centralized consoles, including common scenarios such as unattended roll-outs of new PCs, migrations to new operating systems, and disaster recovery situations in which PCs must be quickly rebuilt due to corruption or accidental misconfiguration.

ON Command CCM will be used to manage more than 90 software applications over the bank’s corporate network, including its line-of-business banking applications as well as standard productivity applications such as Microsoft Office and Adobe Acrobat Reader.

“We manage PCs in nine buildings in Frankfurt alone, and are unable to send out a service technician every time a problem arises. Since ON Command CCM supports automated disaster recovery and automated installation of both operating systems and applications, it reduces our workload greatly,” explained Hans-Peter Fuchs, who is responsible for software distribution and PC installation at KfW.

Robert L. Doretti, Chairman, President and CEO of ON Technology, commented, “We’re pleased by KfW’s selection of ON Technology to enhance the efficiency of their IT infrastructure, and we look forward to working closely with them. This competitive win highlights the unique and innovative technology provided by our solutions for leading enterprise organizations such as KfW.”

About KfW
Kreditanstalt für Wiederaufbau (KfW) is a state-owned development bank. With its loan programs and its export and project finance activities, KfW sees itself as a promotional bank for the German economy. With a balance sheet of EUR 223 billion, it is one of Germany’s ten largest banks, employing approximately 2,500 people at locations in Frankfurt and Berlin.

About ON Technology Corporation
ON Technology empowers IT organizations and service providers to manage the full lifecycle of their computing systems over large-scale corporate networks. Our solutions are used to rapidly and reliably deploy critical applications, operating systems, and content to desktops, mobile PCs, handhelds, servers, retail point-of-sale (POS) terminals and banking workstations. Our customers leverage our solutions to significantly reduce IT costs, improve availability and reliability of business-critical applications, and enhance both IT and end-user productivity. ON’s management solution has been chosen by more than 1,000 enterprises worldwide to manage in excess of 1.2 million networked computer systems. For more information visit ON Technology’s Web site at www.on.com or call 800-767-6638.

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Steve Kreth
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ON Technology, ON Command, and ON Command CCM are registered trademarks, and the ON logo and ON iCommand are trademarks of ON Technology Corporation. Microsoft and Windows are either registered trademarks or trademarks of Microsoft Corporation in the United States and other countries. All other brand names and trademarks are properties of their respective owners.

The statements in this press release that relate to ON Technology’s future plans, events and performance are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve a number of risks and uncertainties. Some of the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements are general economic conditions, including the current weakness in the global economy, demand for the Company’s products and services, performance of the Company’s direct and indirect distribution channels, competitive pressures, market acceptance of the Company’s new products and technologies, and the risk factors detailed from time to time in ON Technology’s periodic reports filed with the Securities and Exchange Commission, including without limitation the Company’s Quarterly Report on Form 10-Q for the third quarter of 2003 filed in November 2003. Actual results and performance may differ materially due to these and other factors. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. ON Technology undertakes no obligation to release publicly any updates or revisions to any forward-looking statements contained in this press release that may reflect events or circumstances occurring after the date of this press release.


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