update software AG bucks the trend and increases revenue

update software AG bucks the trend and increases revenue

New Generation of Products as the Key to Success
---------------------------------------------------------------------------------------------------------------
Vienna, Frankfurt, July 19, 2004 +++ update software AG, listed on the Frankfurt Stock Exchange and a leading vendor of customer relationship management (CRM) solutions, considerably increased revenue in the second quarter as compared to the same period last year. The operating profit and the net profit were also increased by disproportionate amounts.

Revenue Increase of 21.5%
The company’s revenue in the second quarter of 2004 increased by 21.5% to EUR 3.9 million, as compared to EUR 3.2 million in Q2/2003. The operating profit increased from EUR 68,000 to EUR 721,000 compared to the same period the previous year. All in all, following a net loss of EUR 255,000 in the second quarter of 2003, a net profit of EUR 523,000 was achieved in the second quarter of 2004.

Compared to the also very successful first quarter of the year, this means a further increase in revenue of 12% and a net profit increase of 82%.

Mid-year results show a 17% increase in revenue and a net profit of EUR 811,000. Gross margin increased by 5 percentage points to 80% in the second quarter, due to operating at a higher capacity.

Liquid assets totalled EUR 5.9 million at the end of the quarter, an increase of 31% on the same period the previous year.

IR Contact:
Jochen Zemroser
update software AG
Operngasse 17-21
A-1040 Vienna
Tel: +43 1 878 55 512
Fax: +43 1 878 55 505
Jochen.Zemroser@update.com  
www.update.com 

This is a translation from German into English.