euro adhoc: Software AG / other / Software AG: Software AG hedges the cost of its Management Incentive Program 2007

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
for the content of this announcement.
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16.11.2007

Darmstadt, 15.11.2007 - Software AG (TecDAX, ISIN DE 0003304002 /
SOW) will largely hedge the company's Management Incentive Program
2007 by purchasing call options in an over-the-counter transaction.
The options mature in May 2011 with a strike price of E72.36. If
exercised, Software AG will receive the difference between the then
actual share price and the strike price as a cash settlement for a
maximum 1 million options.

Related costs for this transaction are in the order of E12 million
and will be allocated as personnel expenses over the runtime of the
options. The effect on income after tax will be circa E2.2 million
per year. These costs are approximately 50% less than the cost of
implementing a classic, un-hedged stock- option program (according to
IFRS 2).

The new Management Incentive Program 2007 for members of the
Executive Board and officers was launched during the third quarter,
2007. Holders of the options will be entitled to a payment of the
difference between the Software AG share price upon achievement of
the performance targets and the strike price of E72.36. Payment is
contingent upon the achievement of defined performance targets i.e.
reaching E1 billion Group revenues by no later than fiscal 2011 and
concurrently doubling after-tax earnings compared to fiscal 2006.

end of announcement euro adhoc 16.11.2007 14:52:40
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ots Originaltext: Software AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Kontakt Software AG:
|Otmar F. Winzig |Norbert Eder |
|Vice President Investor Relations |Vice President Corporation |
|press@softwareag.com |Communications |
|Tel: +49 (0) 6151 92-1699 |press@softwareag.com |
|Fax: +49 (0) 6151 92-1191 |Tel: +49 (0) 6151 92-1146 |
| |Fax: +49 (0) 6151 92-1444 |

Software AG | Uhlandstraße 12 | 64297 Darmstadt | Germany

Branche: Software
ISIN: DE0003304002
WKN: 330400
Index: TecDAX, CDAX, HDAX, Prime All Share, Technologie All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse Hamburg / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse Hannover / free trade