Software AG raises forecast

Software AG has adjusted its forecast to reflect the takeover of webMethods, Inc. Group revenues are now expected to increase by approximately 30 to 35 percent in comparison with 2006. Previously, the Company had projected an increase of approximately 14 percent. Software AG expects licensing revenues for 2007 to increase by 45 to 50 percent. The ETS business line will contribute approximately 60 percent to Group revenues, and webMethods approximately 40 percent.

The merger is also expected to positively impact earnings per share in the first year. The Company expects earnings per share to increase to between €3.10 and €3.25.

Medium-term planning

Software AG is aiming to increase revenues to €1 billion by 2011. The acquisition of webMethods, Inc. has brought the Company considerably closer to meeting this goal. In addition, we intend to continue to improve the EBIT margin in the medium term. The following factors are expected to contribute to improved operating earnings: higher revenue per employee, faster growth in the high-margin licensing business, increased maintenance revenues, and economies of scale.

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