update software AG: revenue hit yet another record high while EBIT doubled in second quarter of 2007

Ad-hoc release according to §15 WpHG
Quarterly Results / Quarterly Results
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Vienna, Frankfurt, 20 July 2007 +++ update software AG, a leading CRM solutions provider listed on the Frankfurt stock exchange, has just announced the company’s highest revenue to date. For the first time in update’s history, total revenue surged beyond 8 million EUR, reflecting an increase of more than 43% year-on-year, while EBIT rose by almost 100%.
Revenue up 43.3%
With sales revenue totalling EUR 8.123 million, the company posted top-line growth of 43.3% compared to last year’s second quarter (EUR 5.670 million). Licence revenue, the most important revenue figure in a software company, even increased by 53.8%. EBIT rose to EUR 1.028 million, up 99.6% compared to Q2 2006, while the corresponding EBT (earnings before tax) of EUR 1.066 million increased by 90.0% (Q2 2006: EUR 0.561 million).
In terms of half-year results, total revenue rose 30.5%, from EUR 10.831 million in 2006 to EUR 14.138 million in 2007. The resulting EBIT of EUR 1.425 million compares to EUR 0.806 million in H1 2006, reflecting an increase of 76.8%. At EUR 1.571 million, EBT rose even more, a full 104.8% year-on-year (H1 2006: EUR 0.767 million).
Cash position up 30.6%, equity up 66.3%
The cash position as of 30 June 2007 was EUR 11.761 million, up 30.6% from the balance at the end of Q2 2006 (EUR 9.008 million). As the capital increase carried out in June 2007 was used to finance the acquisition of Orgaplan Software GmbH, this increase is attributable to the company’s positive operating business development.
update software AG’s equity capital as of 30 June 2007 totalled EUR 21.942 million, compared to EUR 13.196 million on 30 June 2006.
Orgaplan Software GmbH, which had been acquired in April, was fully consolidated for the first time in the second quarter of 2007.
Commentary text:
“The results speak for themselves: Although Orgaplan was acquired only in April, it has already made a notable contribution to the group. We posted above-average growth in the financial services sector and were able to significantly increase our market shares as a result,“ says the board of management, commenting the results. „Our continued strategy of focusing on industry-specific solutions has yet again proven to be a key success factor.”
New customers in the second quarter of 2007 include Österreichische Doka Schalungstechnik GmbH, an Austrian building component supplier within the Umdasch group; Schunk GmbH & Co KG, a machine component supplier in Germany; K&H Bank Rt in Hungary; Centrum pro vedska studia (educational services sector) in the Czech Republic; and Diagnosis4Health (healthcare sector) in the Netherlands.

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.