Strategic points of focus

We intend to make organizational changes in 2007. The upgrade of ETS to a separate division is a sign of recognition of the significance and upward business trend of the traditional database business. ETS is the second business line after Crossvision that is represented directly in the boardroom. The market has been divided into two sales regions as part of the reorganization (please see Section 2.2, Organization).

Following the successful turnaround in 2004, we have been in a growth phase since 2005. Implementation of our new corporate image and brand strategy is one of the first steps, including a comprehensive corporate model. Our goal is to cement our corporate culture and the markets perception of Software AG.

Our acquisition approach involves looking for technologies to supplement our product portfolio along with new types of products and new markets to optimize our sales strategy.

We will continue to expand our strategic alliances and intensify the positive effects from our network of renowned software companies.

Software AG is continuing to expand in emerging markets in order to widen the Company’s base for profitable growth. The focus will continue to be on countries that have a balanced risk-opportunity profile.

Our third phase will start in 2009. We are striving for worldwide market leadership. Our partner networks and our image will serve to further accelerate our growth. We will also further expand our portfolio via acquisitions, while continuously optimizing processes within the Company.