update reports increase of around 17 % in total revenues in Q3

Ad-hoc release according to §15 WpHG

Q3 2005 Results

update reports increase of around 17 % in total revenues in Q3
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Vienna, Frankfurt, October 20, 2005 +++ update software AG is a leading European CRM solution provider and is listed on the Frankfurt Stock Exchange. In the third quarter 2005 update recorded total revenues of EUR 4.418 million, operating profit (EBIT) of EUR 439,000 and EBT of EUR 472,000.

Revenue up around 17 %
update software AG increased its total revenue in the third quarter by 16.51 % to EUR 4.418 million compared to EUR 3.792 million in the same period of 2004, thus continuing its growth for the ninth successive quarter. This puts EBIT at EUR 439,000 (down 42.76 % compared to Q3 2004). EBT during the quarter totaled EUR 472,000, compared to EUR 903,000 in Q3 2004.

In total, over the first three quarters, revenue totals EUR 12,947 million (up 15.26 % year-on-year). As a result of the investments made in the service organization, EBIT has fallen to EUR 1,276 million (-34.06 %), and EBT to EUR 1,388 million (-20.23 %).

Cash position up 59.68 %, equity up 81.46 %
As of September 30, 2005 cash and cash equivalents totaled EUR 8.995 million, up 59.68 % compared to Q3 2004 (EUR 5.633 million). The cash inflow in Q3 2005 totaled EUR 273,000.

update software AG’s equity as of September 30, 2005 totaled EUR 10.715 million compared to EUR 5,905 million as of September 30, 2004.

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

Commentary text:
"We continued to enforce our consistent strategy of profitable growth - even in the traditionally weaker third quarter," commented CEO Thomas Deutschmann on the quarterly results. He went on to say: "We generated more revenues in this seasonally weak quarter than in any quarter of 2004."

The company once again won well-known new customers such as Demag Cranes & Components s.p.a. in Italy (from the logistics and drives sector) and the Austrian Capital Invest in the financial sector. Other new customers include, for example, Robert Bosch Hungary, Jungheinrich Germany (products and services "for everything to do with forklifts") and IGZ from The Netherlands (a company in the healthcare sector).

This is a translation from German into English.