Software AG Announces the Biggest Deal in the Company's History

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Tue Sep 2, 2008 9:43am EDT

--  Signs a four and a half year license and maintenance contract
        with Banco do Brasil

   --  Software AG confirms revenue and earnings forecast for 2008
RESTON, Va.--(Business Wire)--
Software AG, a global leader in business infrastructure software,
today announced that the company's Brazilian subsidiary has signed the
biggest deal in the Group's history with Banco do Brasil, the largest
bank in Brazil. The contract is subject to the conditions applied to
all government contracts within Brazil, which is 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. EUR 63.7
million at today's currency conversion rate). Nearly three quarters of
the total is license revenue, to be booked over the four and a half
year contract period, with the remainder for maintenance and services.
For the current fiscal year, this represents total revenue of EUR 13.9
million with EUR 10.3 million to be booked within the third quarter.

   Software AG established a direct business relationship with Banco
do Brasil in 2008, following the conclusion of its exclusive
distribution contract with a former local partner in Brazil at the end
of 2007. With the successful closing of this and other Brazilian
contracts, Software AG is confident of reaching its full year forecast
for the country of ca. EUR 30 million. Software AG also reconfirms
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,
forecasted at 24% to 28%, at constant currency rates, and the Group's
EBIT margin forecast of 24%.

   In light of the positive business development in Brazil, the
Executive Board expects total 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 24, 2008.

   About Software AG

   Software AG is the world's largest independent provider of
Business Infrastructure Software. Our 4,000 global enterprise
customers achieve business results faster by modernizing, integrating
and automating their IT systems and processes. As a result, they
rapidly build measurable business value and meet changing business
demands. Based on our solutions, organizations are able to liberate
and govern their data, systems, applications, processes and services -
achieving new levels of business flexibility.

   Our leading product portfolio includes solutions for high
performance data management, developing and modernizing applications,
enabling service-oriented architecture, and improving business
processes. By combining our technology with industry expertise and
best practices experience, our customers improve and differentiate
their businesses - faster.

   Software AG has almost 40 years of global IT experience and over
3,600 employees serving customers in 70 countries. The company is
headquartered in Germany and listed on the Frankfurt Stock Exchange
(TecDAX, ISIN DE 0003304002 / SOW). Software AG posted total revenues
of EUR 621 million in 2007.

   Software AG - Get There Faster

Software AG
Paul Hughes
paul.hughes@softwareag.com
Director Media Relations
Telephone +49 (0) 6151 92-1787
Fax +49 (0) 6151 92-1623
or
Norbert Eder
norbert.eder@softwareag.com
Vice President Corporate Communications
Telephone +49 (0) 6151 92-1146
Fax +49 (0) 6151 92-1444

Copyright Business Wire 2008
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