Software AG plans dividend increase and share split

Darmstadt, Germany, March 11, 2011 – Software AG’s executive board and supervisory board will recommend a 2010 dividend payment of €1.30 per share (previous year: €1.15) at the Annual Shareholders’ Meeting on May 5, 2011. Treasury shares are not entitled to a dividend. This should result in total a pay-out of €37.0 million (2009: €32.6 million) based on the current number of 28.4 million shares entitled to a dividend. Furthermore, the executive board and supervisory board will recommend a reclassification of the equity capital by a share split in the ratio of 1:3.

For fiscal year 2010, Software AG reported a revenue increase of 32 percent, earnings up by 25 percent and a free cash flow increase of 16 percent. This pleasing growth in net income and cash flow has allowed the company to again increase its dividend while simultaneously reducing its net debt position.

The dividend of €1.30 per share for fiscal 2010 is consistent with the sustainable growth strategy of Software AG. This includes a continuous dividend policy in line with the development of net income and cash flow on one hand and the financing of acquisitions through cash, in order to increase the earnings per share, on the other.

In addition, the executive board and supervisory board will submit a share split ,in the ratio of 1:3, for approval at the Annual Shareholders’ Meeting. Thereby, shareholders will receive three shares for each current Software AG share. The percentage of individual ownership in Software AG does not change. As a result of a share split in the ratio of 1:3, the equity capital of the company is reclassified to a total of 86,148,183 bearer shares. Accordingly, three non-par shares with a pro-rata portion of the equity capital of €1 will replace one non-par share with a pro-rata portion of the equity capital of €3.

Contact: