AD HOC DISCLOSURE ACCORDING TO § 15 WPHG

Software AG confirms market entry into Brazil on January 1st, 2008

Darmstadt, Germany – December 17, 2007 – Software AG today announced that the legal dispute with Consist, their distributor in Brazil, has been settled in Software AG’s favor. The United States District Court for the Southern District New York today decided that Software AG has legally terminated their distribution agreement with Consist. The ruling paves the way for Software AG to start direct operations in Brazil from its Sao Paulo office on Jan 1st, 2008 as planned.

Software AG has forecast growth of group revenue in the range of 22% to 25% in 2008 at constant currency rates. This includes the direct market presence in Brazil which is expected to provide a revenue contribution of $20 to $30 million in 2008. Based on the court ruling, Software AG does not incur any additional extraordinary market entry costs and therefore has raised the 2008 target EBIT margin to 23% - 24%. Establishing direct activities in Brazil is a major step for Software AG and will support the company in reaching its target of €1 billion revenue even earlier than the planned 2011. 

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