UPDATE 1-Software AG wins Bank of Brazil contract

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FRANKFURT, Sept 2 (Reuters) - Software AG (SOWG.DE) said on Tuesday its Brazilian subsidiary had signed a license and maintenance contract with Brazil's largest bank worth 63.7 million euros ($92.45 million).

The contract with Banco do Brazil (BBAS3.SA) would run for four-and-a-half years, Software AG said in a statement, adding 10.3 million euros in revenue would be booked in the third quarter.

For the current fiscal year total revenue from the deal, which Software AG called the biggest in its history, would amount to 13.9 million euros, Software AG said.

"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 around 30 million euros," it said.

Its shares were up 4.66 percent at 53 euros at 1237 GMT, outpacing the DJ Stoxx technology index .SX8P, which was up 0.95 percent.

Software AG, a distant second in Germany to leading business software maker SAP (SAPG.DE), reaffirmed it expects 2008 revenue growth of around 12 to 14 percent in the ETS business division and around 40 to 45 percent in the webMethods business division.

The ETS mainframe unit is Software AG's biggest revenue driver. It helps companies maintain and update large mainframe computers.

WebMethods, the U.S. peer Software AG acquired last year, helps connect disparate software systems.

Software AG Group's license revenue growth is forecast at 24 to 28 percent, at constant currency rates, and the group's operating profit margin is seen at 24 percent.

Despite the weakening economic situation in major industrialised countries Software AG confirmed it still expected global revenue growth, at constant currency rates, of 24 to 27 percent.

Software AG is due to report third quarter financial results on October 24. (Reporting by Nicola Leske; editing by Sue Thomas)