Press Release: February 26, 2001

WR Hambrecht + Co Initiates Coverage of Mercury Interactive (MERQ) with a Buy Rating and a Price Target of $80

San Francisco, CA, February 26, 2001—WR Hambrecht + Co today initiated research coverage on Mercury Interactive (MERQ) with a Buy rating and a price target of $80. WR Hambrecht’s Infrastructure Software analyst Prakesh Patel cites Mercury Interactive’s discounted relative valuation and strong market demand for its services as key reasons for the recommendations. WR Hambrecht + Co offers all its research reports free and real-time at www.wrhambrecht.com.

“We feel that Mercury Interactive represents a diversified portfolio play on software demand; as more companies leverage the Internet and roll out Internet applications to manage their enterprise and reach new customers, they will require solutions to manage their guaranteed scalability and performance,” Patel said.

Patel added, “Factoring in the company’s impressive projected growth rates for revenue and net income, we feel that our 12-month price target of $80 leaves considerable room for upside.”

Patel projects Mercury Interactive’s FY2001 revenue at $432.3 million and EPS of $0.96 and FY2002 revenues of $583.4 million and EPS of $1.20.

Mercury Interactive Corporation is a provider of integrated performance management solutions that enable businesses to test and monitor their Internet applications.