Risks and Opportunities

We are subject to acquisition and integration risks based on those acquisitions already implemented and possible additional acquisitions. We are currently preparing for a market entry into Brazil where we are involved in a legal dispute with our contracting party in that country.

Other than that, in the third quarter of 2007, 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 Outlook section of the 2006 Annual Report.

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Annual Report 2006

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