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Interim Management Report

Software AG continues strong profit growth

Software AG’s segment reporting is prepared in accordance with IFRS 8 (Segment Reporting). The primary segment reporting is by division and corresponds to the Group’s internal control and reporting lines. As of January 1, 2007, Software AG began breaking down its segment report into the ETS and Crossvision divisions, whereas in fiscal 2006 primary segment reporting was still by geographical segments. The Crossvision Division was renamed as the webMethods Division beginning with the second quarter report 2007.