update software AG: Sales revenue remained at a high level in the first quarter of 2009

Ad-hoc Release

Vienna, Frankfurt, 21 April 2009 +++ update software AG, a leading CRM solutions provider listed on the Frankfurt stock exchange, has released its 2009 first-quarter results. With sales revenue totaling EUR 7.893 million, the Group was unable to continue its growth trajectory due to the current macroeconomic situation. Operating loss (EBIT) in the first three months was EUR 0.288 million.

Sales revenue down 6.5%

In the first quarter, which is traditionally weak in the software industry, update software AG posted sales revenue of EUR 7.893 million, compared to EUR 8.439 million in Q1 2008. This corresponds to a decline of 6.5% year-on-year, due primarily to customers holding off purchases. EBIT in the first three months decreased to EUR -0.288 million (Q1 2008: EUR 0.376 million). The corresponding EBT was EUR -0.267 million (Q1 2008: EUR 0.446 million).

Solid cash position and equity base

Cash on hand as of 31 March 2009 was EUR 15.777 million, down 6.3% from EUR 16.834 million one year earlier. update software AG’s equity capital as of 31 March 2009 totaled EUR 27.463 million, compared to EUR 25.901 million on 31 March 2008. This corresponds to an increase of 6.0%.

Explanatory text:

“The total sales revenue generated in the traditionally weaker first quarter was strongly affected by the current market situation”, said the board of management, commenting update’s performance. “In the short to medium term we expect to see further slowdown in customer demand. In order to ensure profitable EBIT, we have taken measures to both increase efficiency and reduce cost. Given the difficult economic environment we currently refrain from issuing guidance for 2009. However, thanks to our strong cash cushion, we are well prepared to cope with the upcoming challenges.”

Among the new customers in the first quarter were Weleda AG, Leica Camera AG and Sparda-Datenverarbeitung eG in Germany. Kenteq Holding BV in the Netherlands and Belimo Automation AG in Austria also opted for update’s CRM solution. In addition, update expanded and optimized existing CRM installations at a number of satisfied customers in the first quarter of 2009.

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

www.update.com