update Flying High

update software AG (GER:UP2) (FWB:UP2), leading supplier of
superior CRM solutions in Europe, has plans for further expansion.
According to preliminary figures, update was able to record a turnover
of EUR 23.4m in 2006, an increase of 26% on the previous year.
Operating profit climbed 19% to EUR 2.4m - the best ever in the
history of the company. Early February saw the Board of Directors
approve a planned acquisition in Western Europe. Negotiations are
going well according to Thomas Deutschmann, CEO at update: "We are
making good progress, however we are unable to provide any detailed
information at this time. But the expectation is that the transaction
volume will exceed the two acquisitions in 2005 and 2006 combined". In
2006, update acquired Regware GmbH, one of the most renowned CRM
specialists within the pharmaceutical and analytical CRM sector. The
acquisition of the Polish CRM company Process4E in 2005 has enabled
update to consolidate its position further in the booming Eastern
European market.

The value of update shares (UP2) listed on the Frankfurt Stock
Exchange also reflects the bright outlook of the CRM specialists who
have been so committed over the years to industry focus in the
development of their quality CRM solutions. Valued at just under EUR 4
at the beginning of the year, the share price has since broken the EUR
5 mark. "Our strategy - industry focus, regional expansion and a
leading technological product - is taking hold", explains CEO Thomas
Deutschmann. "In 2006 we grew three times faster than the whole CRM
market and hence much faster than our competitors. Our high-margin
licensing business will grow disproportionately in 2007. We are aiming
for a turnover of EUR 27.4m and an operating profit of EUR 3.3m. This
relates to a margin in the region of 12%, 2 percentage points higher
than in financial year 2006. The figure of EUR 27.4m would be organic
growth - the effects of the planned acquisition are not yet factored
in", explains CEO Deutschmann. "For us as a premium supplier, it is
important that the market will never play a limiting role. Two years
ago we announced our intention to break the EUR 50m turnover level in
2009. Today, and now confident of being able to achieve this
objective, we are thinking beyond that figure. It is not difficult to
envisage update being a EUR 100m company in the next decade".

About update software AG

update software AG (www.update.com) was founded in Vienna in 1988.
With more than 200 employees and an annual turnover of EUR 23.4m
(2006*), update is the leading supplier of CRM solutions in Europe.
update software AG is listed on the German Stock Exchange in Frankfurt
am Main. Products from update are currently being used by more than
120,000 users in over 1000 companies. A selection of update customers:
3M, American Express Bank und Finanzmanagement, the advertising
department at the BILD newspaper group, AstraZeneca, BAWAG P.S.K.,
Canon, DuPont, ESTAG, Hassia Group, Landesbank Rheinland-Pfalz
International S.A., LBS Nord, LBS Ost, MagnaSteyr, Pernod Ricard,
Sparkasse Bremen and ratiopharm. update software AG maintains a
network of strategic partnerships with system integrators such as Atos
Origin, Hewlett Packard, Sensix and Steria Mummert Consulting.

* preliminary profit unverified