Group sales increase significantly

Sales of the Software AG Group rose to €483.0 million during 2006 (prior year: €438.0 million). Successful geographical expansion was one of the major growth factors (see sales by segment).

The impact of exchange rates in the first nine months was neutral. Only in the fourth quarter did exchange rates have a slightly negative effect on sales. The foreign currency impact amounted to minus 1 percent for the year as a whole, with only the U.S. dollar having a perceptible effect on the Group. Sales climbed by 11 percent on a currency-adjusted basis. Since Software AG not only generates sales in U.S. dollars, but also incurs significant costs in this currency, the Company is able to offset the influence of U.S. dollar fluctuations on earnings to a great extent.

*Average change of € currency rate for full year 2006 based on monthly average exchange rates weighted on the actuall monthly total revenues.