Risks and Opportunities

We are subject to acquisition and integration risks based on those acquisitions already undertaken and possible additional acquisitions. In the second quarter of 2007, this risk position increased due to the acquisition of webMethods, Inc. Other than this, however, there were no changes to the risk situation of the Software AG Group as portrayed in the Risk Report of the 2006 Annual Report.

The related opportunities are detailed in the Outlook section of this report and in the Forecast section of the 2006 Annual Report.

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Annual Report 2006

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