Change of Reporting Form

Software AG’s segment report is prepared in accordance with IAS 14 (Segment Reporting). Primary segment reporting is by business division 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 divisions of ETS and crossvision, whereas in fiscal 2006 primary segment reporting was still by geographical segments. In the report on the second quarter, the former crossvision business line was combined with the acquired software company, webMethods, and a new business division operating under the name webMethods was established.

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