update software AG: loss of receivables due to insolvency of a distribution and implementation partner.

Vienna, Frankfurt, 10 March 2010 +++ update software AG, a leading provider of CRM solutions listed on the Frankfurt Stock Exchange, has announced a 100% bad debt allowance on receivables of 1 million EUR.

Due to insolvency proceedings filed against a distribution and implementation partner in Germany, update software AG expects a loss on receivables of up to 1.0 million EUR, depending on the insolvency dividend yet to be determined. As a result, update software AG has set up a corresponding bad debt allowance.

While the expected loss will not jeopardize update software AG's existence, Q1 2010 earnings will be diminished by the bad debt allowance. Based on currently available information, it is not possible at this point to make any authoritative estimates as to the impact on the 2010 annual result.

Given the company's high total cash reserves (28 February 2010: 15.687 million EUR) its liquidity will not be materially affected.

Investor Relations Contact:
Ms. Kerstin Schabhüttl (Mag. FH)
update software AG
Operngasse 17-21
A-1040 Vienna, Austria
Phone: +43 1 878 55 512
Fax: +43 1 878 55 206
investor.relations@update.com
www.update.com