update software AG: Q1 total revenue up by around 17 percent, EBIT by around 37 percent

Ad-hoc release according to §15 WpHG

Quarterly Results / Quarterly Results
---------------------------------------------------------------------------------------------------------------Vienna, Frankfurt, 20 April 2007 +++ update software AG, a leading CRM solutions provider listed on the Frankfurt stock exchange, has released its 2007 first-quarter results. It reports total revenue of EUR 6.014 million and an increase in operating profit (EBIT) by around 37 %.

Revenue up 16.5 %
Although the first quarter in the software industry is traditionally weak, update software AG increased its total revenue by 16.5% to EUR 6.014 million, compared to EUR 5.161 million in Q1 2006. The strongest growth was posted in the service unit (+32.5%). EBIT totalled EUR 0.398 million, up 36.8 % from the same period in 2006 (EUR 0.291 million). The company’s earnings before taxes increased by more than 145 %, totalling EUR 0.505 million (Q1/2006: EUR 0.206 million). This impressive growth was due, among others, to an increase in net interest.

Liquid assets up 25.5 %
The liquid assets as of 31 March 2007 was EUR 12.010 million, up 25.5 % from the balance at the end of Q1 2006 (EUR 9.568 million). Cash flow for Q1 2007 totalled EUR 4.896 million. Compared to last year’s balance of EUR 1.882 million, which was burdened by the acquisition of REGWARE GmbH, cash flow increased by more than 160 %.

Shareholders’ equity up 32.3 %
update software AG’s shareholders’ equity as of 31 March 2007 totalled EUR 16.581 million, which corresponds to an increase of 32.3 % compared to last year’s level of EUR 12.535 million.

Commentary  text:
“Our key financial figures confirm yet again that the consistent implementation of update’s strategy is paying off and that the company is on the right track. An impressive example of this is the staggering growth of more than 170 % in Financial Services, one of update’s six key industries”, says the board of management, commenting update’s 2007 first-quarter results.

Among the new customers in the first quarter were Sony Deutschland GmbH and Netviewer GmbH, a German company in the IT industry. Lensen Toppoint (wholesale sector) in The Netherlands and the Economic Forum of Managers in Austria were further entities opting for update’s CRM solution. In addition, the CRM installations at a number of satisfied existing customers were optimised and expanded in the quarter just ended.

IR Contact:
Jochen Zemroser
update software AG
Operngasse 17-21
A-1040 Vienna
Phone: +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.