The disproportionate rise in the licensing business can be traced primarily to our clear strategy and consistent customer orientation.

Moreover, in the past fiscal year, Software AG has continued to improve the Company’s cost structure by means of active cost management and optimization of internal company processes. Software AG’s good overall results for 2006 helped the Company reach its ambitious targets.

Software AG generated operating cash flows of €61.4 million during 2006. This represents an increase of 10 percent over the previous year. Cash flow therefore rose in proportion to revenues. The cash flow margin is again high at 13 percent. This is a sign of the intrinsic value of the business and enables investment in growth as well as payment of attractive dividends.

Cash and cash equivalents rose from €161.6 million to €184.8 million in the past fiscal year.