Exhibit 99.1


		For details, contact: Wallace Ruiz Chief Financial Officer Phone (201) 512-7809 Email: wruiz@novadigm.com		Jody Burfening/Kathy Price Lippert/Heilshorn & Assoc. (212) 838-3777 jbs@lhai.com

Financial News Release

NOVADIGM ANNOUNCES SECOND QUARTER RESULTS

MAHWAH, N. J. – October 27, 2003 – Novadigm, Inc. (Nasdaq: NVDM) a leading provider of adaptive software change and configuration management solutions, today reported financial results for the second quarter of fiscal 2004, ending September 30, 2003.

Revenues for the second quarter of fiscal 2004 were $13 million compared to $16.5 million for the same quarter last year. Net loss for the second quarter of the current fiscal year was $2.0 million, or $0.10 per basic and diluted share, compared to a break even for the same period in the last fiscal year. The company ended the quarter with $23 million in cash, cash equivalents and marketable securities down from $26.8 million at the end of the prior quarter.

Revenues for the six months ended September 30, 2003 were $24.2 million compared to $27.6 million for the same period last year. Net loss for the six months ended September 30, 2003 was $5 million, or $0.26 per basic and diluted share, compared to a net loss of $6.8 million, or $0.34 per basic and diluted share, for the same period a year ago.

“North America continued to lead in license revenue production this past quarter, with increasing contribution from Europe, and a modest public sector contribution. We closed two commercial transactions over $1 million in the quarter, as well as two pilot agreements with significant new commercial customers, each with over $1 million in incremental license revenue potential over the next several quarters, and a third pilot with a major new public sector customer,” said Albion Fitzgerald, Novadigm chief executive officer. “While IT spending conditions continued to be constrained during the quarter, particularly in Europe, our expanded product set is providing us with a broader range of enterprise opportunities and a stronger value proposition and competitive differentiation. At the same time, our strategic investments in technology, channels and customers are enabling us to maintain our market leadership position for the long-term,” concluded Fitzgerald.


NOVADIGM ANNOUNCES SECOND QUARTER RESULTS			2

“Our North American organization continued to demonstrate improved proficiency in closing large agreements, and our European organization closed another major new enterprise deal this quarter. We are also seeing increasing opportunities and activities in our longer-cycle public sector business,” said Gerald Labie, Novadigm president and chief operating officer. “Going forward, we’re taking our enhanced product set to an expanded enterprise audience through a number of significant marketing activities in Europe and North America this quarter, while continuing to strengthen our direct sales organizations and our partner relationships,” concluded Labie.

Highlights for the second quarter included:

•		New customers included Barclay’s Bank, Energis, Finaref, National Science Foundation, Wisconsin Electric Power, and the US Army

•		Expanded licenses with over 27 customers including, Deutchser Ring, Employers Mutual Casualty, ESPN, Iowa Farm Bureau, JB Hunt, Kindred Healthcare, Mitre, Republic Mortgage Insurance, Smiths Aerospace, Standard Charter Bank, Tennant Company, Toronto Police Services, Vodafone GmbH and Watson Wyatt

•		Expanded and new customer licenses through EDS and HP as well as other partners in Europe, Japan and Latin America

•		Fourth annual European Connections user group meetings in Paris, Berlin and London hosted more than 150 customers and business partners

•		Novadigm customer KeyCorp earned the prestigious CIO 100 award from IDG’s CIO magazine for maximizing return on investment and demonstrating resourceful use of IT systems, staff and budgets. Key reported a less than 12-month payback and 84% efficiency improvement in their software management process as a result of using Novadigm’s Radia Management Suite.

Conference Call Information

Investors are invited to listen to the live conference call at 5:00 p.m., eastern time, today over the Internet through Novadigm’s website, located at http://www2.novadigm.com/ir/main.asp. To listen to the live call, please go to the web site at least fifteen minutes early to download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available on the Novadigm website shortly after the call. Investors may also listen to a telephone replay of the conference call by dialing 800-642-1687 (international callers dial 706 645-9291), reservation 3266261, starting at 7:00 p.m., eastern time today until 11:00 p.m., eastern time, on November 3.


NOVADIGM ANNOUNCES SECOND QUARTER RESULTS			3

ABOUT NOVADIGM (Nasdaq: NVDM)

Novadigm is a leading provider of software and content management solutions for enterprise and Internet computing environments that enable organizations to reduce software management costs, speed time-to-market, expand marketing channels and open new sources of revenue. Novadigm’s suite of integrated products, based on the company’s market-leading technology, work seamlessly together as the only end-to-end solution that can efficiently, reliably and scalably deploy and manage the full range of today’s software and content, personalized for a wide range of computing devices, across virtually any network. Novadigm customers – Global 1000 business enterprises, software vendors and service providers around the world – report software management savings of 80 percent or more, time-to-market improvements of 70 percent or more, and reliability typically greater than 99 percent. For more information on Novadigm, please visit www.novadigm.com or call 1-800-626-6682.

This press release contains 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, that are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. Where possible, Novadigm has attempted to identify these statements by using words such as “intend,” “expect,” “anticipate,” “will,” “target” and similar expressions. The forward looking-statements are subject to certain risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or applied by the forward looking statements. These risks, uncertainties and other factors include the number, size and timing of customer orders, the timing and market acceptance of Novadigm’s new products, the dependence on resellers, the level and pricing of international sales, changes in the level of operating expenses, technological advances and new product introductions by Novadigm’s competitors, competitive conditions in the industry, foreign currency exchange rates and the resolution of patent related claims and proceedings. In addition, the sales cycle for the Company’s products is lengthy and unpredictable depending upon the interest of the prospective customer in the Company’s products, the size of the order, the decision-making and acceptance procedures within the customer’s organization, the complexity of implementation and other factors. The Company’s operating results may also vary significantly due to seasonal trends, as a result of efforts by the Company’s direct sales personnel to meet annual quotas, lower international revenues in the summer months when many European businesses experience lower sales, the establishment of calendar year capital budgets by prospective customers, as well as other factors. Novadigm may not be able to achieve or maintain profitability on a quarterly or annual basis in the future. These and other risks and uncertainties that could affect Novadigm’s future operating results are described from time to time in Novadigm’s filings with the Securities and Exchange Commission. In particular, see the Risk Factors described in Novadigm’s Form 10-Q for the fiscal quarter ended June 30, 2003. Except as expressly required by the federal securities laws, Novadigm undertakes no obligation to update or revise these forward-looking statements or forecasts to reflect new events or changed circumstances or for any other reason.

NOVADIGM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands, except per share amounts)
(unaudited)


			Three Months Ended						Six Months Ended
			September 30,						September 30,

			2003			2002			2003			2002

REVENUES:
	Licenses		$	5,667		$	10,552		$	10,031		$	15,281
	Maintenance and services			7,370			5,961			14,185			12,291

		Total revenues		13,037			16,513			24,216			27,572

OPERATING EXPENSES:
	Cost of licenses – amortization of intangible asset			334			333			668			667
	Cost of maintenance and services			3,669			3,344			6,878			6,902
	Sales and marketing			6,239			7,132			11,926			13,446
	Research and development			2,180			2,587			4,494			5,182
	General and administrative			2,721			3,031			5,363			5,762
	Amortization of intangible			—			—			—			2,018

		Total operating expenses		15,143			16,427			29,329			33,977

Operating income (loss)				(2,106	)		86			(5,113	)		(6,405	)
Interest income, net				42			112			122			223
Other income (expense), net				110			(109	)		5			(433	)

Income (loss) before provision for income taxes				(1,954	)		89			(4,986	)		(6,615	)
Provision for income taxes				—			43			24			208

Net income (loss)			$	(1,954	)	$	46		$	(5,010	)	$	(6,823	)

Earnings (loss) per share-basic			$	(0.10	)	$	0.00		$	(0.26	)	$	(0.34	)

Weighted average basic common shares outstanding				19,125			19,706			19,164			19,939

Earnings (loss) per share-diluted			$	(0.10	)	$	0.00		$	(0.26	)	$	(0.34	)

Weighted average diluted common shares outstanding				19,125			20,230			19,164			19,939

NOVADIGM, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)


					September 30,			March 31,
					2003			2003

ASSETS
	Current assets:
		Cash and cash equivalents			$	20,412		$	15,666
		Restricted cash				150			150
		Short-term marketable securities				2,463			13,760
		Accounts receivable, net				12,931			15,656
		Prepaid expenses and other current assets				2,523			1,175

				Total current assets		38,479			46,407
	Property and equipment, net					2,365			2,182
	Intangible asset					1,391			2,059
	Other assets					1,049			788

				Total assets	$	43,284		$	51,436

LIABILITIES AND STOCKHOLDERS’ EQUITY
	Current liabilities:
		Accounts payable			$	3,621		$	3,598
		Accrued liabilities				2,278			3,670
		Accrued payroll and other compensation				3,527			4,211
		Deferred revenue				10,872			12,235

				Total current liabilities		20,298			23,714

	Long-term liabilities					58			71
	Stockholders’ equity:
		Common stock, par value $0.001:
			Authorized—30,000 shares — 19,080 and 19,247 issued as of September 30, 2003 and March 31, 2003, respectively			19			19
		Additional paid-in capital				86,251			86,314
		Stockholders notes receivable				—			(233	)
		Accumulated deficit				(64,251	)		(59,241	)
		Accumulated comprehensive income				909			792

				Total stockholders’ equity		22,928			27,651

				Total liabilities and stockholders equity	$	43,284		$	51,436

NOVADIGM INC 8-K