Software AG’s upward business trend is based on four growth drivers:

four Growth drivers
Portfolio Enhancement	Product launches in 2006: Adabas 2006 Q1 (high-performance transaction database) Natural 2006 Q1 (efficient development system for business applications) Crossvision in Q2 (innovative SOA Suite)
Geographic Expansion	New markets (Latin America, Middle East, Eastern Europe, Asia) Start direct sales in Japan (in Q4) Start direct sales in Brazil (Q1/2008)
Sales & Marketing Push	Increased marketing investment Sales Force skill development (increased efficiency) New global branding and image (Q1/2007)
Partner Networking	System integrators, e.g. Atos Origin, Bearing Point Technology partners, e.g. Fujitsu, IDS Scheer, SAP, ILOG CentraSite Community (approx. 20 software vendors)

All four growth drivers support the fulfillment of our medium to long-term goals.

We have substantially strengthened our product portfolio with the successful introduction of Adabas 2006, Natural 2006 and Crossvision. The company now focuses on selling its own products phasing out thirdparty components.

We are also continuing to grow the Company through geographical expansion. With this in mind, we are increasing our presence in new markets with high growth potential: Asia, the Middle East, Eastern Europe, and Latin America.

We are making continuous investments in marketing and sales activities. This includes specific activities to promote employee development in these areas. As part of our strategic repositioning, we have developed a new corporate image and brand strategy.

We continue to steadily expand our network of strategic partners. We regard the strategic integration of diverse systems as an efficient path to offering our customers the best possible service.

We will also make acquisitions in the future as part of the process of strengthening our portfolio, expanding geographically, and increasing sales.

This strategy will allow us to pursue our goals of market leadership in legacy modernization and SOA.

Our medium-term financial goals up to 2011 include:

• An average of at least 10 percent growth per year at Group level
• Single-digit growth in the ETS line
• Double-digit growth in Crossvision sales
• Additional sales by developing new markets and partners
• EBIT margin of over 25 percent

Proactive M&A strategy

• Increase market presence
• Extend technology leadership
• Gain additional market share

Our financial goals for 2007 are stated in the "Forecast".