Press Release

Altiris, Inc. (Nasdaq: ATRS), a pioneer of IT lifecycle management solutions that reduce the total cost of owning information technology, today announced financial results for the second quarter ended June 30, 2005.

For the second quarter, the Company reported total revenue of $46.3 million, an increase of 16 percent over $40.0 million reported in the second quarter of 2004. Net income for the second quarter of 2005 was $4.0 million, or $0.14 per diluted share, including $10.0 million in other income related to a legal settlement, offset by $2.6 million for the amortization of acquired intellectual property, $952,000 for amortization of intangible assets and $2.7 million in stock-based compensation. This compares to net income of $3.7 million, or $0.13 per diluted share, reported in the second quarter of 2004, and includes $1.0 million for the amortization of acquired intellectual property, $681,000 for amortization of intangible assets, and $145,000 in stock-based compensation.

On a pro forma basis, the Company reported net income of $1.9 million, or $0.07 per diluted share, for the second quarter of 2005, excluding $10.0 million in other income related to a legal settlement, $2.6 million for the amortization of acquired intellectual property, $952,000 for amortization of intangible assets and $2.7 million in stock-based compensation, and applying a tax rate of 35 percent.

“Although the second quarter was challenging, we continued to make good progress across our market with new and existing customers and partners,” commented Greg Butterfield, chairman and CEO of Altiris. “We demonstrated growth in revenue from server and asset management, as well as increased demand for patch management and security solutions. We are pleased to report strength in revenue contribution through our VAR and systems integrator partners, where we are refocusing efforts to drive additional opportunities.”

“While we do not believe that the spending environment in our market will improve radically in the second half of 2005, we believe that we have taken the appropriate steps to increase the productivity and efficiency of our sales force, adjust our operating model and position us to take better advantage of the opportunities ahead of us. As a result, we are optimistic about our future,” concluded Butterfield.

Earnings Call Information
Altiris, Inc. will broadcast a conference call discussing the company’s second quarter results on Wednesday, August 3 beginning at 5:00 p.m. Eastern Time. A live Webcast of the call will be available from the Investor Relations section of the company’s corporate website at http://phx.corporate-ir.net/phoenix.zhtml?c=131071&p=irol-irhome. For those unable to listen to the live Webcast, a replay of the call will also be available on the Altiris Website, or by dialing 877-519-4471 and entering passcode 6310978.

Pro Forma Financial Measures
In this earnings release and during our earnings conference call and Webcast to be broadcast on August 3, 2005 as described above, we use or plan to discuss certain pro forma financial measures, which may be considered non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States of America, or GAAP. A reconciliation between pro forma and GAAP measures can be found in the accompanying tables and on the Investor Relations Section of our website at www.altiris.com. We believe that, while these pro forma measures are not a substitute for GAAP results, they provide a basis for evaluating the Company’s cash requirements for ongoing operating activities. These pro forma measures have been reconciled to the nearest GAAP measure as required under SEC rules regarding the use of non-GAAP financial measures. We compute pro forma net income by adjusting GAAP net income before taxes for amortization of acquisition-related intellectual property, amortization of other acquired intangible assets such as customer lists and work force, stock-based compensation and a legal settlement. In addition, we used a pro-forma tax rate of 35 percent for the second quarters of 2005 and 2004.

About Altiris
Altiris, Inc. is a pioneer of IT lifecycle management software that allows IT organizations to easily manage desktops, notebooks, thin clients, handhelds, industry-standard servers, and heterogeneous software including Windows, Linux and UNIX. Altiris automates and simplifies IT projects throughout the life of an asset to reduce the cost and complexity of management. Altiris client and mobile, server, and asset management solutions natively integrate via a common Web-based console and repository. For more information, visit www.altiris.com.

Note on Forward-Looking Statements
This press release contains certain 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, including but not limited to, statements regarding the refocusing of our efforts with our VAR and systems integrator partners, the spending environment in our market during the second half of 2005, steps taken to increase the productivity and efficiency of our sales force, adjust our operating model and better position us for future opportunities, and our optimism for the future. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ, including, but not limited to, our inability to develop and expand our VAR, systems integrator and other indirect sales channels, changes in economic conditions generally or technology spending in particular, factors affecting our ability to realize the anticipated cost savings and efficiencies from the adjustments made to our operating model, problems or delays in reducing our cost structure, our inability to align our expenses with anticipated revenues and Company strategy, our inability to achieve the anticipated benefits of recently acquired businesses, fluctuations in our future quarterly revenue and operating results, slower than expected closure rates on larger transactions, any deterioration of our relationships with HP, Dell, Fujitsu Siemens Computers, Microsoft and other OEMs and strategic partners, our inability to compete effectively in an increasingly competitive market, our inability to manage expenses, disruptions in our business and operations as a result of acquisitions, difficulties and delays in product development, our failure to expand our customer base, the length and complexity of our product sales cycle, reduced market acceptance of our products and services, our failure to continue to meet the sophisticated and changing needs of our customers, risks inherent in doing business internationally, our inability to implement and maintain adequate internal systems and effective internal control over financial reporting, changes in relevant accounting standards and securities laws and regulations, and such other risks as identified in our Quarterly Report on Form 10-Q for the period ended March 31, 2005 as filed with the Securities and Exchange Commission and all subsequent filings, which contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward looking statements. Altiris assumes no obligation and does not intend to update these forward-looking statements.

(TABLES TO FOLLOW)

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