update software AG: Revenue and earnings reach all-time high in 2008

Ad-hoc Release
Vienna, Frankfurt, 28 January 2009 +++ update software AG, a leading CRM solutions provider listed on the Frankfurt stock exchange, has released its preliminary results for the 2008 financial year. With total sales revenue for the year of EUR 36.644 million and operating earnings (EBIT) of EUR 4.013 million, update software AG looks back on the strongest year in the company’s history, despite the difficult economic climate in 2008.
Best revenue once again in the fourth quarter
With sales revenue totalling EUR 10.107 million, the fourth quarter was once more update software AG’s most successful quarter in the year under review, and considering the difficult global economic scenario, it is only slightly (3.4%) below the record revenue posted one year earlier. EBIT was EUR 1.264 million, down 17.9% from Q4 2007 (EUR 1.539 million). EBT was EUR 1.470 million, decreasing 16.3% compared to Q4 2007 (EUR 1.757 million).
Annual revenue up by nearly 13%
update software AG reports sales revenue growth for the 2008 financial year of 12.6% to EUR 36.644 million, compared to EUR 32.538 million in 2007. Broken down by segments, revenue increased as follows: Licensing and Maintenance +8.0%, Services +22.5%. This strong growth is also reflected in the company’s earnings: The company’s preliminary EBIT climbed to a record EUR 4.013 million, up 8.3% year-on-year (2007: EUR 3.705 million), while EBT of EUR 4.517 million represents an increase of 9.4% (2007: EUR 4.130 million). Net income for 2008 is not yet available, as it cannot be released before deferred taxes have been computed.
The cash position as of the 2008 balance sheet closing date was EUR 12.064 million, which represents an increase of 18.0% year-on-year. Cash inflow for the 2008 financial year totalled EUR 1.842 million, compared to EUR 3.108 million in 2007. update software AG’s preliminary equity capital as of 31 December 2008 totalled EUR 27.858 million, up 9.9% from 2007 (EUR 25.355 million).

Explanatory text:
“Despite an increasingly difficult environment over the course of the year, update generated the best results in the company’s history, demonstrating its strong competitiveness,” says the board of management, commenting update’s preliminary annual results. “Given our strong cash on hand we are well prepared to cope well with the difficult economic climate in 2009 too.”

Projects with both new and existing customers contributed to this success. Among the new customers acquired in the fourth quarter of 2008 were Pipelife International GmbH in Austria, Sol-E Suisse AG, and CMA – the Central Marketing Organisation of German Agricultural Industries, Messer Information Services GmbH, and Wieland-Werke AG in Germany, and the French Kronenbourg-Carlsberg Group. Examples from the financial services sector include Sparda-Bank Hamburg eG, Kleinwort Benson Private Bank and Nordcapital GmbH. In the pharmaceutical industry, Actavis Deutschland GmbH and Paul Hartmann AG were among the new customers opting for update’s solutions.

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