update software AG: announcement of the results for the first quarter of 2010

Vienna, Frankfurt, 20 April 2010 +++ update software AG, a leading CRM solutions provider listed on the Frankfurt stock exchange, has released its 2010 first-quarter results. Sales revenue totaled EUR 6.776 million. Given the transition to the new business model, this result is within the group's expectations.

New business model as key focus for 2010
Due to the change from on-premise software to SaaS, 2010 will be a transitional year in which update software AG will focus on laying the foundation for the company’s course of development. Sales revenue for the first quarter was EUR 6.776 million (Q1 2009: EUR 7.893 million), a decrease of 14.2 %. This development is within the management's expectations.

Due to a petition for insolvency proceedings by a distribution partner, a bad debt allowance of EUR 1.0 million was set up in the first quarter. Operating income (EBIT) before this non-recurring item was EUR -0.188 million, up 34.7 % year-on-year (Q1 2009: EUR -0.288 million).

EBIT after this non-recurring item was EUR -1.190 million, with EBT totaling EUR -1.247 (Q1 2009: EUR -0.267 million).

Increase in cash position and solid equity base
The company's cash and cash equivalents as of 31 March 2010 was EUR 16.548 (Q1 2009: EUR 15.777 million), an increase of 4.9 % compared to the balance at the end of Q1 2009. update software AG’s equity capital as of 31 March 2010 totaled EUR 23.987 million, compared to EUR 27.463 million one year earlier.

Commentary text:
“With the launch of update.revolution on 28 January, update took a step into its new future. 55.6 % of the new customers in the first quarter have already opted for the new SaaS model. This, combined with the feedback from the market, makes us take a positive outlook going forward. The insolvency filed by one of our distribution partners has dulled the beginning of the year somewhat, yet given our high cash reserves of EUR 16.548 million, our liquidity is not materially affected.”

Among the new customers in the first quarter of 2010 were KSB AG in Germany, one of the world's leading producers of pumps, valves and related systems, the Swiss energy service company AEK Energie AG, and the Deutsche Sparkassen Akademie, the central professional development instutition of the German Sparkassen financial services group. Further customers who opted for update's CRM solution include Paged Meble S.A. and Vifor Pharma Ltd.

Investor Relations contact:
Kerstin Schabhüttl
update software AG
Operngasse 17-21
A-1040 Vienna
Tel: +43 1 878 55 512
Fax: +43 1 878 55 206
investor.relations@update.com
www.update.com