update software AG: supervisory board confirms 2009 audited financial statements

Vienna, Frankfurt, 13 April 2010 +++ update software AG, a leading provider of CRM solutions listed on the Frankfurt Stock Exchange, has released its audited statements for the 2009 financial year, which were confirmed by the Company’s Supervisory Board in its meeting today. Due to the difficult market environment, the Company’s income is down from last year.

2009 revenue and EBIT confirmed
The Company's sales revenue as reported on 28 January 2010, totaling EUR 31.346 million (2008: EUR 36.644 million), was confirmed by the Supervisory Board today. This means that revenue is down 14.5% year-on-year. Revenue in the individual sales segments was as follows: Licensing and Maintenance -16.9%, Services -10.4%. The Licensing segment's drop in revenue from last year is attributable to the effects of the global financial crisis, the accompanying customer restraint in capital spending, and the postponement of orders to subsequent periods.

The 2009 audited operating income before non-recurring items was EUR 1.201 million (2008: EUR 4.013 million). Operating income after non-recurring items was EUR -1.971 million. Non-recurring items of EUR 3.172 million include restructuring costs, provisions for impending losses and goodwill impairment loss.

The Group posted EUR -1.631 million in income after tax for the 2009 financial year, which corresponds to a decrease of 140.7% year-on-year (2008: EUR 4.010 million).

Solid balance sheet structure
update software AG's audited equity as of 31 December 2009 was EUR 25.114 million, a decrease of 10.5% compared to the balance on 31 December 2008. The equity ratio was 75%. Cash on hand as of the balance sheet closing date was EUR 10.323 million, i.e. down 14.4% year-on-year.

Commentary text:
“Given the uncertain economic environment, 2009 developed into a difficult year for update. Although we were able to post profits again in the second half of the year, thanks to our implementation of structural changes, the non-recurring items in Q4 had a marked impact on our earnings. In 2009 already we leveraged our resources and began realigning our business model on a SaaS basis. Going forward, this realignment will allow us to generate higher margins than can be achieved in the classic licencing business and will minimize our dependence on non-recurring revenue from licensing sales. For 2010, which will be a year of transition, we expect revenue to remain unchanged and earnings to break even, creating the basis for sustained profitable growth in the years to follow”, says the Board of Management.

Investor Relations Contact:
Kerstin Schabhüttl
update software AG
Operngasse 17-21
1040 Vienna, Austria
Phone: +43 1 878 55 512
Fax.: +43 1 878 55 9512
investor.relations@update.com
www.update.com