THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Mercury Interactive Corporation (MERQ.PK)

3/31/2005 Proxy Information

Clyde Ostler, one of our directors, is an executive officer of Wells Fargo & Company, a financial company and a company with which we do business. In 2004, we entered into transactions for the license of products and the sale of services to Wells Fargo & Company and its affiliates of approximately $5.2 million. In addition, in 2004, we maintained cash deposit accounts with Wells Fargo & Company with a weighted average balance of approximately $3.6 million and an investment account related to investments in our Israeli research and development facility with a weighted average balance of approximately $140.0 million. We believe that our transactions with Wells Fargo & Company were on terms no more favorable than those with unrelated parties and that Mr. Ostler has not had and will not have a direct or indirect material interest in these transactions.

Mr. Zingale, one of our directors, president and chief operating officer is a director of Interwoven, Inc. During fiscal year 2004, we entered into two transactions with Interwoven for the license of approximately $50,600 of our products and maintenance services. In addition, we entered into one transaction with Interwoven for $36,000 for the renewal of maintenance services for Interwoven products licensed to Mercury. We believe that the transactions with Interwoven were on terms no more favorable than those with unrelated parties and that Mr. Zingale had no direct or indirect material interest in these transactions.

Brad Boston, one of our directors since May 2004, is the senior vice president and chief information officer for Cisco Systems, Inc. In 2004 we entered into transactions for the license of products and the sale of services to Cisco of approximately $3.9 million. In addition, in 2004, we purchased approximately $2.4 million of Cisco products and services. We believe that these transactions with Cisco were on terms no more favorable than those with unrelated parties and that Mr. Boston had no direct or indirect material interest in these transactions.

3/26/2004 Proxy Information

In October 1998, September 1999, April 2001 and September 2001, we extended loans to Amnon Landan in the amounts of $2,500,000, $1,000,000, $905,960 and $805,087, respectively, in connection with Mr. LandanÕs exercise of stock options. The loans were secured by the shares of our common stock purchased by Mr. Landan upon exercise of those stock options and were evidenced by promissory notes. These loans have been paid in full.

In April 2001, Mercury extended a loan to Kenneth Klein in the amount of $1,197,249 in connection with Mr. KleinÕs exercise of stock options. The loan was secured by the shares of our common stock purchased by Mr. Klein upon exercise of those stock options and was evidenced by a promissory note. This loan has been paid in full.

On March 12, 2003, Mr. Landan paid an aggregate of $3.4 million to pay off his loans in full prior to the due date and on November 3, 2003, Mr. Klein paid an aggregate of $243,360 to pay off his loan in full prior to the due date.

Clyde Ostler, one of our directors, is an executive officer of Wells Fargo & Company, a financial company and a company with which we do business. During fiscal year 2003, we recorded total revenues from the sale of products and services to Wells Fargo & Company and its affiliates of approximately $2.1 million. In addition, during fiscal year 2003, we maintained cash deposit accounts with Wells Fargo & Company with a weighted average balance of approximately $3.3 million and an investment account related to investments in our Israeli research and development facility with a weighted average balance of approximately $173.1 million. We believe that our transactions with Wells Fargo & Company were on terms no more favorable than those with unrelated parties and that Mr. Ostler has not had and will not have a direct or indirect material interest in these transactions.

Anthony Zingale, one of our directors, is a director of Biz360, Inc. a privately held enterprise software company. In January 2003, our audit committee approved a 15-month subscription agreement with Biz360 to purchase marketing services for $110,000, which amount has been paid. In July 2003, our audit committee approved an increase in the subscription agreement for an additional $60,000. We believe that this transaction with Biz360 was on terms no more favorable than those with unrelated parties and that Mr. Zingale has not had and will not have a direct or indirect material interest in this transaction.

In January 2004, our audit committee approved entering into a transaction with GE Aircraft for the license of approximately $119,000 of our products. A member of Mr. ZingaleÕs immediate family is an employee of GE Aircraft. We believe that this transaction with GE Aircraft was on terms no more favorable than those with unrelated parties and the Mr. Zingale has not had and will not have a direct or indirect material interest in this transaction.

Mr. Zingale is also a director of Interwoven, Inc. In March 2004, our audit committee ratified the renewal of two existing maintenance contracts with Interwoven for approximately $37,000 and the license of additional Mercury products and related maintenance to Interwoven for approximately $55,000. We believe that these transactions with Interwoven were on terms no more favorable than those with unrelated parties and that Mr. Zingale has not had and will not have a direct or indirect material interest in these transactions.

Mr. Landan, MercuryÕs chairman of the board, president and chief executive officer serves on the board of directors of Savi Technology, Inc., a privately held provider of global supply chain security and asset management solutions. In October 2003 and January 2004, our audit committee approved entering into transactions with Savi Technology, Inc. for approximately $130,000 and Savi Technology Asia Pte. Ltd for approximately $90,000 for the license of our products to both entities. We believe that these transactions with Savi Technology were on terms no more favorable than those with unrelated parties and that Mr. Landan has not had and will not have a direct or indirect material interest in these transactions.

4/3/2003 Proxy Information

In October 1998, September 1999, April 2001 and September 2001, we extended loans to Amnon Landan in the amounts of $2,500,000, $1,000,000, $905,960 and $805,087, respectively, in connection with Mr. LandanÕs exercise of stock options. The loans are secured by the shares of our common stock purchased by Mr. Landan upon exercise of those stock options and are evidenced by promissory notes.

In April 2001, Mercury Interactive extended a loan to Kenneth Klein in the amount of $1,197,249 in connection with Mr. KleinÕs exercise of stock options. The loan is secured by the shares of our common stock purchased by Mr. Klein upon exercise of those stock options and is evidenced by a promissory note.

The following table sets forth the details of the loans and describes the largest amount of indebtedness of each of the executive officers during fiscal year 2002 and the amount of indebtedness of each of the executive officers at March 13, 2003. On March 12, 2003, Mr. Landan paid an aggregate of $3.4 million to pay off his loans in full prior to the due date.

Clyde Ostler, one of our directors, is an executive officer of Wells Fargo & Company, a financial company and a company with which we do business. During fiscal year 2002, we recorded total revenues from the sale of products and services to Wells Fargo & Company and its affiliates of approximately $900,000. In addition, during fiscal year 2002, we maintained cash deposit accounts with Wells Fargo & Company totaling approximately $1.6 million and an investment account related to investments in our Israeli research and development facility totaling approximately $188.0 million. We believe that our transactions with Wells Fargo & Company were on terms no more favorable than those with unrelated parties and that Mr. Ostler has not had and will not have a direct or indirect material interest in these transactions.

Anthony Zingale, one of our directors is a director of Biz360, Inc. a privately held enterprise software company. In January 2003, our Audit Committee approved a 15-month subscription agreement with Biz360 to purchase marketing services for $110,000, which amount has been paid. We believe that this transaction with Biz360 was on terms no more favorable than those with unrelated parties and that Mr. Zingale has not had and will not have a direct or indirect material interest in this transaction.