Change of Reporting Form

Software AG’s segment report is prepared in accordance with IAS 14 (Segment Reporting). Primary segment reporting is by business segment and corresponds to the internal control and reporting lines of the Group. As of January 1, 2007, Software AG began breaking down its segment report into the business lines of ETS and webMethods (formerly Crossvision), whereas in fiscal 2006 primary segment reporting was still by geographical segments. Starting with the report on the second quarter, the Crossvision business line has been renamed “webMethods”.

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