update software AG: Good Third Quarter with Constant Sales Increase

Ad-Hoc Report
Vienna, Frankfurt, October 17, 2008 +++ update software AG, a leading CRM solutions provider, quoted at the stock exchange in Frankfurt, has been notified of its figures for the third quarter in 2008. Also during this quarter the company registered increasing sales, that rose around 10 % to EUR 8.707 million, compared to the same quarter of last year. The operational production (OP) increased around 43 % to EUR 1.060 million during the third quarter.
The Sales Trend Going Up 9.71 %

In the third quarter of 2008, update software AG was able to increase its sales to EUR 8.707 million, around 9.71 %, compared to last year’s quarterly sales in value of EUR 7.936 million. The sales increase has been produced particularly by Segment Services and Technical Services. However, the sales segment licensing has not met expectations not least due to the effects of the global financial crisis and the inherent clientele destabilization. In exchange OP could be increased from EUR 0.740 million by 43.17 % to EUR 1.060 million on account of cost savings. The production before taxes (PT) stands at EUR 1.186 million (compared to previous year’s period amounting to EUR 0.803 million) and registered a 47.70 % rise.

Cumulatively, the total sales for the first three quarters amount to EUR 26.538 million (compared to previous year’s period amounting to 22.074 million), thus increasing by 20.22 %. An OP of EUR 2.749 million was produced during the same time period (compared to previous year’s period amounting to EUR 2.166 million), which corresponds to a 26.93 % increase. The cumulative PT for the first three quarters amounts to EUR 3.047 million (compared to previous year’s period amounting to EUR 2.374 million) and increased by 28.37 %.

Increase in the Cash Position and Shareholders’ Equity

As of September 30, 2008, the liquid assets stock amounted to EUR 13.731 million (compared to previous year’s period amounting to EUR 10.758 million), which corresponds to a 27.64 % increase compared to the stock in value at the end of the third quarter in 2007. As of September 30, 2008, the update software AG shareholders’ equity amounted to EUR 27.449 million (compared to previous year’s period amounting to EUR 22.811 million).

Explanatory text:

“As was to be expected due to holiday season sales increase was lower than in previous quarters,” commented the Board of Directors on the quarter production. “Against the background of the global financial crisis it is difficult to provide an outlook for the further course of the year.”

During this past quarter, again, some notable new clients could be won, such as the German Agravis Raiffeisen AG, Sidrogra GMbH, Merz Austria GmbH, or Hauser GmbH. Also the Alliance Hungaria and the OAO Swedbank (Russia) have chosen an update CRM solution during the third quarter.

Investor Relations Contact:   

Andreas Mössner   
update software AG
Operngasse 17-21
A-1040 Vienna   
Tel: +43 1 878 55 512
Fax: +43 1 878 55 9512