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02.09.2008 – 14:16

Software AG

Software AG announces the biggest deal in the company´s history

- A four and a half year license and maintenance contract signed with Banco do Brasil - Revenue and earnings forecast for 2008 confirmed

  ots.CorporateNews transmitted by euro adhoc. The issuer is responsible for
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Darmstadt (euro adhoc) - Darmstadt, Germany, 2-9-2008, the Brazilian subsidiary of Software AG has signed the largest deal in the Group´s history with the largest bank in Brazil, Banco do Brazil. The contract is subject to the conditions applied to all government contracts in Brazil, namely that no third party objections are registered within a defined period.

The contract is for a four and a half year period and has a total net worth (without sales tax) of 151.6 million Real (ca. EUR63.7 million at today´s currency conversion rate). Nearly three quarters of the total is license revenue, to be booked over the 4.5 contract period, with the rest for maintenance and services. For the current fiscal year this means total revenue of EUR13.9 million of which EUR10.3 million will be booked in the third quarter.

Software AG established a direct business relationship with Banco do Brasil in 2008, after ending the exclusive distribution contract between Software AG and its former local partner in Brazil in 2007. With the successful closing of this and other contracts in Brazil, Software AG is confident of reaching its full year forecast in the country of ca. EUR30 million. This re-confirms the guidance for the full year 2008 of revenue growth (net of currency effects) of ca. 12% to 14% in the ETS business division and ca. 40% to 45% in the webMethods business division. The Banco do Brasil contract strengthens the 2008 license revenue growth of the Software AG Group, forecast at 24% to 28%, at constant currency rates, and the groups EBIT margin forecast of 24%.

In light of the positive business development in Brazil, the Executive Board expects 2008 global revenue growth, at constant currency rates, of 24% to 27%, despite the weakening economic situation in the major industrialized countries.

Software AG´s third quarter financial results will be published on October 24th, 2008.

end of announcement                               euro adhoc

Further inquiry note:

Otmar Winzig
Phone: +49 (0) 170 4551562

Paul Hughes
Phone: +49 (0) 6151 921787

Branche: Software
ISIN: DE0003304002
WKN: 330400
Index: TecDAX, CDAX, HDAX, Prime All Share, Technologie All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse Hamburg / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse Hannover / free trade

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