Events after the Balance Sheet Date

The Supervisory Board newly appointed Mr. David Mitchell to the Executive Board effective July 27, 2007. Mr. David Mitchell was previously CEO of U.S. software producer webMethods, Inc., which was taken over by Software AG as of May 25, 2007. In his future role, he will be in charge of global sales for the webMethods division. This appointment marks the discontinuation of the previous regional sales structure and a continuation of the Company’s focus on the two business divisions of Enterprise Transaction Systems (ETS) and webMethods, Inc. Thus each of the two divisions has an Executive Board member in charge of development and sales. Software AG had already transformed the primary control logic of the Company from a regional focus to a focus on business divisions at the start of the year. Mr. Alfred Pfaff, previously a member of the Executive Board, will be leaving the Board by mutual consent.

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