EXHIBIT 99.1

NEWS For Immediate Release

Editorial Contact: Erin Jones

949-754-8032

erin.jones@quest.com

Investor Contact: Scott Davidson

949-754-8659

scott.davidson@quest.com

QUEST SOFTWARE REPORTS RESULTS FOR SECOND QUARTER 2005

Revenue Grows 16% Year-over-Year to $107.1 Million for the Quarter

IRVINE, Calif., August 4, 2005 — Quest Software, Inc. (Nasdaq: QSFT), a leading provider of application, database and infrastructure management solutions, today reported financial results for the second quarter ended June 30, 2005. Total revenues increased 16% year-over-year to $107.1 million compared to last year’s second quarter revenue of $92.1 million. Total revenues for the first six months of 2005 were $210.5 million compared to $174.7 million for the same period in 2004.

GAAP Results

Quest Software’s GAAP net income for the second quarter was $10.7 million, or $0.11 per diluted share. GAAP operating margins were 15.4% in the second quarter, resulting in GAAP operating income of $16.5 million. Net income for the first six months of 2005 was $19.7 million or $0.20 per diluted share versus net income of $3.0 million or $0.03 per diluted share for the comparable period in 2004. Quest Software generated cash flow from operations of $16.2 million in the June 2005 quarter.

Non-GAAP Results

On a pro forma basis, operating margins increased to 19.4% for the quarter, resulting in pro forma net income of $13.4 million, or $0.13 per share on a diluted basis. This compares to pro forma net income of $8.9 million, or $0.09 per share on a diluted basis for the second quarter ended June 30, 2004. For the six months ended June 30, 2005 pro forma net income was $25.8 million of $0.26 per diluted share. This compares to pro forma net income of $17.5 million or $0.18 per diluted share for the six months ended June 2004.

A reconciliation of pro forma and as reported financial results is included with this press release.

“Our second quarter results were strong and we continue to see increasing awareness of our solutions within the enterprise,” said Vinny Smith, chairman and chief executive officer, Quest Software. “With the recent addition of the people and products from Imceda Software, Inc. and Vintela, Inc., and a number of key product releases, we have underscored our commitment to building out a robust application, database and infrastructure management product portfolio for our customers.”

Quest Software management utilizes non-GAAP financial measures in the presentation of the Company’s results to provide a consistent understanding of its historical operating performance and comparisons with peer companies. Management believes that pro forma reporting provides a more accurate representation of the Company’s on-going economic performance and therefore uses pro forma reporting internally to evaluate and manage the Company’s operations. Management believes that these measures provide useful information because they exclude certain items including amortization of acquisition-related intangible assets, other compensation expenses associated with stock options, litigation-related loss contingency reserves and impacts of other events, which might otherwise obscure the results of operations of our core business when compared to our historical performance or competitors or are not necessarily relevant to understanding the operating activities within the Company’s business.

Financial Outlook

Quest Software management offers the following guidance for the third quarter ending September 30, 2005, including the impact from the acquisitions of Imceda Software Inc. (Imceda) and Vintela, Inc. (Vintela). For assumptions please read the accompanying footnote(1):

• Revenue is expected to be in the range of $111.0 million to $114.0 million.

• GAAP diluted earnings per share is expected to be in the range of $0.07 to $0.09 per share;

• Pro forma diluted earnings per share is expected to be in the range of $0.11 to $0.13 per share. The pro forma guidance excludes approximately $4.5 million of amortization of acquisition-related intangible assets and $1.0 million of other compensation charges related to stock options.

For the full year ending Dec. 31, 2005, Quest Software management offers the following guidance, including the impact from the Imceda and Vintela acquisitions. For assumptions please read the accompanying footnote(1):

• Annual revenue is expected to be in the range of $452 million to $467 million;

• GAAP diluted earnings per share is expected to be in the range of $0.43 to $0.47 per share;

• Pro forma diluted earnings per share is expected to be in the range of $0.56 to $0.60. The pro-forma guidance excludes approximately $16.3 million of amortization of acquisition-related intangible assets, $1.1 million of in-process research and development charges related to our acquisition of Wingra and $3.2 million of other compensation charges related to stock options.

Second Quarter 2005 Conference Call Information

Quest Software will host a conference call today, Thursday, August 4, 2005 at 2:00 p.m. Pacific Time, to discuss its results. A simultaneous Web cast of the conference call will be available on Quest Software’s Web site in the Investors — IR Events section at www.quest.com. A Web cast replay will be available on the same Web site through August 4, 2006. An audio replay of the call will also be available through August 18, 2005 by dialing (888) 203-1112 (from the U.S. or Canada) or (719) 457-0820 (outside the U.S. and Canada), using confirmation code: 9465971.

About Quest Software, Inc.

Quest Software, Inc. delivers innovative products that help organizations get more performance and productivity from their applications, databases and 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, headquartered in Irvine, Calif., can be found in offices around the globe and at www.quest.com.

Quest and Quest Software are registered trademarks of Quest Software, Inc. The Quest Software logo and all other Quest Software product or service names and slogans are registered trademarks or trademarks of Quest Software, Inc. All other trademarks and registered trademarks are property of their respective owners.

¹Our third quarter ending September 30, 2005 and full year ending December 31, 2005 guidance assumes the following:

• Our GAAP guidance excludes amortization of intangible assets, fair value accounting for deferred revenue and potential charges related to in-process research and development (IPR&D) arising from our acquisition of Vintela, which are not available at the present time.

• Assumes other income (expense), net of $200,000 per quarter;

• The GAAP tax rate is projected at 33%, which excludes any tax rate changes relating to our cash repatriation efforts, which will be addressed in the third quarter of 2005 and is exclusive of any potential impact from IPR&D, which is to be determined as we complete our acquisition accounting for the Vintela deal but will have an affect upon the rate. The pro-forma tax rate is expected to be 34% for the quarter and full year.

Forward Looking Statements

This release and the matters to be discussed on the conference call may include predictions, estimates and other information that might be considered forward-looking statements, including statements relating to expectations of revenues and earnings per share in future periods and anticipated benefits of our acquisitions of

Imceda and Vintela. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ from those anticipated as a result of various factors, including: the impact of adverse changes in general economic conditions on our customers; reductions or delays in information technology spending; variations in the size and timing of customer orders; competitive products and pricing; rapid technological change; risks associated with the development and market acceptance of new or enhanced products; disruptions caused by acquisitions of companies and/or technologies; the integration of products, services, employees and operations of acquired companies; fluctuating currency exchange rates and other risks associated with international operations; and the need to attract and retain qualified employees. For a discussion of these and other related risks, please refer to our recent SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2004 and our Quarterly Report on Form 10-Q for the period ended March 31, 2005, which are available on the SEC’s website at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. We undertake no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

QUEST SOFTWARE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2005			2004			2005			2004
Revenues:
Licenses	$	54,612		$	51,195		$	109,330		$	98,223
Services		52,514			40,952			101,144			76,451
Total revenues		107,126			92,147			210,474			174,674
Cost of revenues:
Licenses		1,192			974			2,160			2,071
Services		8,685			7,363			17,360			13,766
Amortization of purchased technology		2,421			2,280			4,676			3,711
Total cost of revenues		12,298			10,617			24,196			19,548
Gross profit		94,828			81,530			186,278			155,126
Operating expenses:
Sales and marketing		45,634			41,193			89,027			77,317
Research and development		20,640			20,356			41,760			38,513
General and administrative		10,565			8,524			20,267			16,785
Amortization of other purchased intangible assets		1,498			1,563			2,774			2,293
In-process research and development		—			280			1,050			6,980
Litigation loss provision		—			5,000			—			5,000
Total operating expenses		78,337			76,916			154,878			146,888
Income from operations		16,491			4,614			31,400			8,238
Other (expense) income, net		(522	)		(506	)		(2,032	)		161
Income before income tax provision		15,969			4,108			29,368			8,399
Income tax provision		5,302			1,479			9,662			5,384
Net income	$	10,667		$	2,629		$	19,706		$	3,015
Net income per share:
Basic	$	0.11		$	0.03		$	0.20		$	0.03
Diluted	$	0.11		$	0.03		$	0.20		$	0.03
Weighted average shares:
Basic		96,838			94,374			96,517			94,087
Diluted		99,253			97,761			99,422			97,774

QUEST SOFTWARE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended June 30, 2005								Six Months Ended June 30, 2005
	GAAP			Adjustments		Adjusted			GAAP			Adjustments		Adjusted
Revenues:
Licenses	$	54,612				$	54,612		$	109,330				$	109,330
Services		52,514					52,514			101,144					101,144
Total revenues		107,126					107,126			210,474					210,474
Cost of revenues:
Licenses		1,192					1,192			2,160					2,160
Services		8,685		(37	)(1)		8,648			17,360		(75	)(1)		17,285
Amortization of purchased technology		2,421		(2,421	)		—			4,676		(4,676	)		—
Total cost of revenues		12,298					9,840			24,196					19,445
Gross profit		94,828					97,286			186,278					191,029
Operating expenses:
Sales and marketing		45,634		(279	)(1)		45,355			89,027		(564	)(1)		88,463
Research and development		20,640		(22	)(1)		20,618			41,760		(420	)(1)		41,340
General and administrative		10,565		(10	)(1)		10,555			20,267		(21	)(1)		20,246
Amortization of other purchased intangible assets		1,498		(1,498	)		—			2,774		(2,774	)		—
In-process research and development		—		—			—			1,050		(1,050	)(2)		—
Total operating expenses		78,337					76,528			154,878					150,049
Income from operations		16,491					20,758			31,400					40,980
Other expense, net		(522	)				(522	)		(2,032	)				(2,032	)
Income before income tax provision		15,969					20,236			29,368					38,948
Income tax provision		5,302		1,558	(3)		6,860			9,662		3,506	(3)		13,168
Net income	$	10,667				$	13,376		$	19,706				$	25,780
Net income per share:
Basic	$	0.11				$	0.14		$	0.20				$	0.27
Diluted	$	0.11				$	0.13		$	0.20				$	0.26
Weighted average shares:
Basic		96,838					96,838			96,517					96,517
Diluted		99,253					99,253			99,422					99,422

(1) Represents stock based compensation and payroll taxes attributed to stock option exercises.

(2) Represents a one-time charge to write off in-process research and development assumed with our acquisition of Wingra Technologies, Inc. in January 2005.

(3) Represents the tax effect of adjustments.

QUEST SOFTWARE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended June 30, 2004								Six Months Ended June 30, 2004
	GAAP			Adjustments		Adjusted			GAAP		Adjustments		Adjusted
Revenues:
Licenses	$	51,195				$	51,195		$	98,223			$	98,223
Services		40,952					40,952			76,451				76,451
Total revenues		92,147					92,147			174,674				174,674
Cost of revenues:
Licenses		974					974			2,071				2,071
Services		7,363		(59	)(1)		7,304			13,766	(89	)(1)		13,677
Amortization of purchased technology		2,280		(2,280	)		—			3,711	(3,711	)		—
Total cost of revenues		10,617					8,278			19,548				15,748
Gross profit		81,530					83,869			155,126				158,926
Operating expenses:
Sales and marketing		41,193		(461	)(1)		40,732			77,317	(674	)(1)		76,643
Research and development		20,356		(107	)(1)		20,249			38,513	(209	)(1)		38,304
General and administrative		8,524		(8	)(1)		8,516			16,785	(14	)(1)		16,771
Amortization of other purchased intangible assets		1,563		(1,563	)		—			2,293	(2,293	)		—
In-process research and development		280		(280	)(2)		—			6,980	(6,980	)(5)		—
Litigation loss provision		5,000		(5,000	)(3)		—			5,000	(5,000	)(3)		—
Total operating expenses		76,916					69,497			146,888				131,718
Income from operations		4,614					14,372			8,238				27,208
Other (expense) income, net		(506	)				(506	)		161				161
Income before income tax provision		4,108					13,866			8,399				27,369
Income tax provision		1,479		3,513	(4)		4,992			5,384	4,469	(4)		9,853
Net income	$	2,629				$	8,874		$	3,015			$	17,516
Net income per share:
Basic	$	0.03				$	0.09		$	0.03			$	0.19
Diluted	$	0.03				$	0.09		$	0.03			$	0.18
Weighted average shares:
Basic		94,374					94,374			94,087				94,087
Diluted		97,761					97,761			97,774				97,774

(1) Represents stock based compensation and payroll taxes attributed to stock option exercises.

(2) Represents a one-time charge to write off in-process research and development assumed with our acquisition of Lecco Technology in April 2004.

(3) Represents a special charge for a loss contingency reserve related to our Computer Associates intellectual property litigation.

(4) Represents the tax effect of adjustments.

(5) Represents one-time charges to write off in-process research and development assumed with our acquisition of Aelita Software in March 2004 and Lecco Technology in April 2004.

QUEST SOFTWARE, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

ASSETS

	June 30, 2005		December 31, 2004
Current assets:
Cash and cash equivalents	$	121,642	$	118,157
Short-term marketable securities available for sale		123		15,892
Accounts receivable, net		73,327		98,800
Prepaid expenses and other current assets		11,106		12,528
Deferred income taxes		13,092		13,075
Total current assets		219,290		258,452
Property and equipment, net		76,396		52,761
Long-term marketable securities		125,399		163,527
Amortizing intangible assets, net		58,044		41,404
Goodwill		379,548		323,903
Other assets		4,038		3,304
Total assets	$	862,715	$	843,351
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	5,779	$	4,135
Obligation under repurchase agreement		—		12,632
Accrued compensation		24,336		27,802
Other accrued expenses		28,302		46,292
Income taxes payable		12,267		12,030
Current portion of deferred revenue		114,615		106,356
Total current liabilities		185,299		209,247
Long-term liabilities:
Long-term portion of deferred revenue		20,553		20,897
Deferred income taxes		9,470		4,526
Other long-term liabilities		1,434		1,769
Total long-term liabilities		31,457		27,192
Shareholders’ equity		645,959		606,912
Total liabilities and shareholders’ equity	$	862,715	$	843,351

QUEST SOFTWARE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2005			2004			2005			2004
Cash flows from operating activities:
Net income	$	10,667		$	2,629		$	19,706		$	3,015
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		6,810			7,237			12,958			12,639
Compensation expense associated with stock option grants		311			539			994			709
Deferred income taxes		5			8			(36	)		11
Tax benefit related to stock option exercises		772			872			1,031			2,412
Provision for bad debts		120			91			40			68
In-process research and development		—			280			1,050			6,980
Litigation loss provision		—			5,000			—			5,000
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable		(19,548	)		(8,723	)		23,965			1,084
Prepaid expenses and other current assets		307			1,959			768			(372	)
Other assets		(789	)		(419	)		(648	)		(422	)
Accounts payable		953			2,114			1,501			2,607
Accrued compensation		3,159			1,505			(3,455	)		389
Other accrued expenses		4,405			182			(3,630	)		(4,614	)
Litigation settlement payment		—			—			(16,000	)		—
Income taxes payable		2,286			(3,576	)		(65	)		(2,314	)
Deferred revenue		6,763			2,713			5,753			7,556
Other liabilities		(38	)		(84	)		(146	)		331
Net cash provided by operating activities		16,183			12,327			43,786			35,079
Cash flows from investing activities:
Purchases of property and equipment		(25,362	)		(7,548	)		(28,401	)		(24,134	)
Cash paid for acquisitions, net of cash acquired		(44,871	)		(1,655	)		(57,625	)		(95,938	)
Sales and maturities of marketable securities		51,209			4,326			53,273			17,331
Net cash used in investing activities		(19,024	)		(4,877	)		(32,753	)		(102,741	)
Cash flows from financing activities:
Proceeds from repurchase agreement		—			81			—			67,581
Repayment of repurchase agreement		—			—			(12,725	)		—
Repayment of notes payable		(40	)		—			(40	)		—
Repayment of capital lease obligations		(13	)		(136	)		(98	)		(228	)
Proceeds from the exercise of stock options		1,834			1,627			3,306			5,915
Proceeds from employee stock purchase plan		—			—			—			2,723
Net cash provided by (used in) financing activities		1,781			1,572			(9,557	)		75,991
Effect of exchange rate changes on cash and cash equivalents		1,158			751			2,009			(70	)
Net increase in cash and cash equivalents		98			9,773			3,485			8,259
Cash and cash equivalents, beginning of period		121,544			65,956			118,157			67,470
Cash and cash equivalents, end of period	$	121,642		$	75,729		$	121,642		$	75,729