update software AG acquires 100 percent of the Polish CRM company Process4E S.A.

Ad-hoc release according to §15 WpHG
M&A
update software AG continues to expand in the new EU countries
update software AG acquires 100 percent of the Polish CRM company Process4E S.A.
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Vienna, Frankfurt, Warsaw; March 09, 2005 +++ update software AG, a leading European CRM solutions provider listed on the Frankfurt stock exchange, has acquired 100 percent of the Polish CRM company Process4E S.A. The deal was closed today, March 9, 2005, in Warsaw, Poland, at a purchase price of PLN 6.6 million (about EUR 1.6 million). The company was previously owned by MCI Management S.A. (67 percent), a listed Polish venture capital firm, and its German founder, Ulrich Kottmann (33 percent). In 2004, the Warsaw-based company posted close to PLN 3.6 million (about EUR 800,000) in revenue and over PLN 27,000 (about EUR 6,000) in net profit. At present, Process4E S.A. has 11 employees. The company’s founder, Ulrich Kottmann, will continue to serve as its managing director for the next three years.
Since its foundation in Warsaw in July 2000, Process4E S.A. has been a successful player in the Polish market. The company’s share capital is PLN 2.5 million (about EUR 625,000), with accumulated earnings totaling PLN 320,101 (about EUR 80,000). Cash and cash equivalents total PLN 2.34 Mio. (about EUR 585,000) and receivables PLN 877,000 (about EUR 219,000), compared to only PLN 547,000 (about EUR 137,000) in liabilities. The company is wholly equity financed. The main focus of Process4E is on providing services and solutions in the field of CRM and process analysis. Since its foundation in 2000, Process4E has served more than 60 customers, mostly large medium-sized trading, production and services companies.
IR Contact:
Jochen Zemroser
update software AG
Operngasse 17-21
A-1040 Vienna
Tel: +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.