MEMCO and Ernst & Young Form Alliance to Extend Security Offerings

Business Wire, May 19, 1998

REDWOOD CITY, Calif.--(BUSINESS WIRE)-- May 19, 1998 --

E & Y Information Systems Assurance and Advisory Services Personnel to Provide Implementation for MEMCO's Suite of Security

Solutions

MEMCO Software (Nasdaq: MEMCF), a leading provider of information security software, announced today a strategic alliance with professional services firm Ernst & Young LLP. Security professionals with Ernst & Young's Information Systems Assurance and Advisory Services (ISAAS) will be certified by MEMCO to provide the companies' mutual clients with implementation services for MEMCO's server security product, SeOS (Security for Open Systems.) and for Proxima, which provides secure single sign-on and enterprise-wide security administration.

"Ernst & Young's reputation for excellence with so many Fortune 1000 organizations provides MEMCO with a highly valued partner to increase the availability of implementation services." commented Gadi Maier, CEO of MEMCO Software Inc. "One of our key goals for 1998 is to move these services geographically closer to our customers, and overall, to be highly responsive to our customers' needs. Our alliance with Ernst & Young immediately furthers that goal."

For Ernst & Young, this alliance is part of a strategy to provide its clients with innovative and real-world security solutions. In the alliance, Ernst & Young will incorporate MEMCO technology into its security architecture methodology, adding an innovative product to the services it offers clients. As Jon Darbyshire, National Director of Information Security Services with Ernst & Young noted, "Our clients need robust security technologies to protect mission-critical data and applications, especially across platforms and throughout complex network environments. We are pleased to be able to bring MEMCO solutions to our clients when we assist them in building an improved security architecture."

MEMCO's Security Solutions

MEMCO's SeOS (Security for Open Systems) software suite provides security on the network's servers, where corporate data and mission-critical applications reside. SeOS Access Control revolutionizes Unix and Windows NT security by preventing abuse of super-user privileges and maintaining complete and reliable accountability.

MEMCO's Proxima suite eliminates user frustration, streamlines administration, and enhances overall security associated with access to systems and applications. Proxima SSO (Single Sign-On) automates user login with single sign-on to all authorized applications and systems. Proxima Manager enables central management of user accounts and resources in distributed multi-platform environments.

About Ernst & Young

Ernst & Young's Information Systems Assurance and Advisory Services (ISAAS) professionals provide a wide range of information technology-related services, including:

- Assessing information system controls;

- Evaluating and recommending improvements to information security;

- Assistance in controlling systems under development;

- Providing data analysis, business continuity planning, and

internal audit assistance.

Ernst & Young LLP provides assurance and advisory business services, tax services, and consulting for both domestic and global clients. The firm has over 29,000 people in 87 U.S. cities. For more information, visit the Ernst & Young website at http://www.ey.com.

About MEMCO Software

MEMCO Software Ltd. (Nasdaq: MEMCF) is a leading provider of information security solutions for distributed computing environments. MEMCO's flagship software product, SeOS (Security for Open Systems), provides access control security for Unix and Windows NT servers. MEMCO addresses the single sign-on market with its Proxima product suite, which automates user logins and centralizes user account management. The company's customers include leaders in finance, telecommunications and other industries where information security is critical. MEMCO successfully partners with many of the world's largest software companies, systems integrators and value-added resellers, including a strategic OEM relationship with Tivoli Systems Incorporated, an IBM company. MEMCO's headquarters are located in Tel Aviv, Israel and Redwood City, California. For more information, please visit the company's Web site at http://www.memco.com.

(c)1998 MEMCO Software Ltd. MEMCO, SeOS Access Control, SeOS Security Administrator, Proxima SSO, Proxima Manager and MEMCO SECURED are proprietary trademarks of MEMCO Software Ltd. All other product names mentioned herein are trademarks of their respective owners.

CONTACT: Tara Lynch Kathleen Hill

Miller Shandwick MEMCO Software Inc.

212.591.9784 212.891.9620 / 800.862.2602

tlynch@shandwick.com kathyh@memco.com

or

Michael Celiceo

Miller Shandwick

650.596.5820

mceliceo@shandwick.com