Confirmation of the 2007 forecast and the expansion of business in 2008

Software AG has increased its forecast to reflect the acquisition of webMethods, Inc. in May 2007. Adjusted Group revenues are now expected to increase by approximately 30 to 35 percent (currency-adjusted) 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. Based on the initial positive effects of the acquisition, earnings per share should increase to €3.10 to €3.25.

For 2008, Software AG plans for Group operating revenues to increase (currency-adjusted) 22 to 25 percent. In the coming year, the EBIT margin should be approximately 23 percent.

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 sales employee, faster growth in the high-margin licensing business, increased maintenance revenues, and economies of scale.

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