update software AG Posts Record Revenues and Doubles Operating Earnings in Q2/2007

In the second quarter of fiscal 2007, update software AG (FWB:UP2)
- a leading European vendor of Customer Relationship Management (CRM)
solutions - has posted record revenues. For the first time, update,
headquartered in Vienna, Austria, and quoted on the Frankfurt Stock
Exchange, generated total sales in excess of EUR 8 million, an
increase of more than 43 percent compared to the previous quarter.
Moreover, the company doubled earnings before interest and taxes
(EBIT). Revenues for the second quarter of 2007 amounted to EUR 8.123
million, up 43.3 percent over the same period of fiscal 2006 (EUR
5.670 million). And, significantly for a software vendor, licensing
sales rose by 53.8 percent. EBIT climbed to EUR 1.028 million, up 99.6
percent over the second quarter of 2006. Earnings before tax (EBT)
were EUR 1.066 million, a year-on-year jump of 90 percent (EUR 0.561
million).

On course for the EUR 100 million mark

update CEO, Thomas Deutschmann, is understandably upbeat: "The
figures speak for themselves. The recent acquisition of Orgaplan, the
German CRM specialist for banks, with a particular focus on the
publicly-owned Sparkassen, has already had an extremely positive
impact. Especially in financial services, update has experienced
above-average growth, and considerably increased market share, putting
us firmly on track to become the European leader. Our strategy of
targeting specific industries, and our commitment to profitable
growth, are proving highly successful. What's more, the development of
company results underlines the realism of our EUR 50 million revenue
target for fiscal 2009 - to which a further significant acquisition
would also contribute. Against this background of growth and
profitability, I can easily imagine update joining the ranks of
companies that generate annual revenues of EUR 100 million within the
next decade."

A string of new customers

update gained a number of new customers in the second quarter of
fiscal 2007 - such as the K&H Bank Rt in Hungary, a member of the
Belgian KBC group, and two leading financial services organisations in
Switzerland. The vendor's clientele also includes Schunk GmbH & Co.
KG, a German manufacturer of automation components and
tool-/work-holding solutions, and Doka Schalungstechnik GmbH, an
Austrian supplier of formwork and a member of the Umdasch group. And
the Centrum pro vedska studia (Centre for Vedic Studies) in the Czech
Republic, and Diagnosis4Health, a Dutch organisation, are further
additions to update's customer base.

Half-year sales 30.5 percent higher than for same period of 2006

In terms of half-yearly figures, too, update has seen impressive
year-on-year improvement. Total sales rose from EUR 10.831 million for
the first six months of 2006 to EUR 14.138 million for the same period
in 2007 - a rise of 30.5 percent. EBIT was EUR 1.425 million for the
first six months, up 76.8 percent over the first half year of 2006
(EUR 0.806 million). EBT was EUR 1.571 million, 104.8 percent higher
(EUR 0.767 million in the first half year of 2006). update's cash
position climbed to EUR 11.761 million - 30.6 percent higher than for
the first six months of 2006 (EUR 9.008 million). Shareholders' equity
for update software AG totalled EUR 21.942 million on 30 June 2007 -
66.3 percent higher than at mid-year 2006 (EUR 13.196 million). update
financed the purchase of Orgaplan Software GmbH via a share issue in
June 2007 - so the increase in the cash position is explained by the
positive development of business operations. Orgaplan Software GmbH,
acquired by update in April, was fully consolidated in the second
quarter of 2007.

About update software

update software AG (www.update.com) was founded in Vienna,
Austria, in 1988. With more than 260 employees, and revenues of EUR
23.4 million in 2006, it is Europe's leading CRM (customer
relationship management) solution provider. It is quoted on the
Frankfurt Stock Exchange.

update products are used by more than 150,000 employees at over
1,200 leading companies. References include 3M, American Express, BILD
newspaper publishing group's advertising department, AstraZeneca,
BAWAG P.S.K., Canon, DuPont, ESTAG, the Hassia Group, UnicreditBank
Hungary, Landesbank Rheinland-Pfalz International S.A., LBS Nord,
MagnaSteyr, Pernod Ricard, ratiopharm, Sony Deutschland, as well as
Sparkasse Bremen, Sparkasse Hamburg, and 200 other German Sparkassen.
update cooperates with carefully selected systems integration
partners, such as Atos Origin, Hewlett Packard, Sensix, and Steria
Mummert Consulting.

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