EANS-News: Software AG / Software AG completes the merger with IDS Scheer

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

Mergers - Acquisitions - Takeovers

Darmstadt (euro adhoc) - Software AG completes the merger with IDS
Scheer

• Merger agreement registered effective immediately • Outstanding IDS
shareholders become shareholders of Software AG • The merger
manifests the new global player in Business Process Excellence •
Merger enhances organizational agility and flexibility • Software AG
expects an overachievement of cost synergies compared to previous
estimates

Darmstadt, Germany, December 22, 2010 - Software AG (TecDAX, ISIN DE
0003304002 / SOW) announced today that the legal integration with IDS
Scheer has been completed with yesterday´s registration of the merger
with immediate effect. Under the terms of the merger agreement the
remaining shareholders of IDS Scheer AG will receive four Software AG
shares for every 33 IDS Scheer AG shares. The conversion is being
performed by the custodian banks on December 22, 2010. Software AG
acquired its own shares required for the exchange (ca. 130,000) in
February 2010 on the open stock market.

The fusion of both companies into one legal entity has established a
new global player offering software and services for Business Process
Excellence. Software AG has already reported growth in both, IDS
Scheer products and services, in the third quarter but the new merged
company allows for increased speed, agility and flexibility in taking
and implementing business decisions. As a result of the fast
execution of the merger, Software AG expects total cost savings to be
higher than the originally estimated amount of EUR25 to EUR30
million.

Software AG´s CEO, Karl-Heinz Streibich, stated: "We have made great
progress in integrating the two companies over the last year and have
seen a very positive reaction from customers, employees and industry
analysts. This last legal step will enable us to accelerate our joint
business development, enhancing our customer offerings and delivering
the opportunities of a truly global player to our employees and
customers."

The merger has created a global provider of Business Process
Excellence software with more than 10,000 customers, 6,000 employees
and over EUR1 billion revenue forecast for 2010. Software AG´s
strengths: technology leadership in middleware software, financial
strength and a global presence complement IDS Scheer´s strengths: the
modeling, implementation and controlling of business processes, a
strong partner network and a large service presence. Through the
merger, Software AG has also gained extensive industry expertise and
direct access to vertical markets and a strong presence in the SAP
consulting business.

The combination of both leading technologically and complementary
product portfolios for the digitization and implementation of
business processes of both companies is unique and gives the combined
company a sustainable and strengthened competitive position in a
rapidly consolidating software market. In particular, by reaching a
critical size in more key European markets, the company market access
has been significantly improved. In addition, the consulting
expertise of IDS Scheer has allowed Software AG to increase market
penetration of its own products in industry-specific and large
projects.

"The completion of the merger will have a positive impact on our
profitability as we expect direct cost savings in 2011 based on only
having one listed legal entity", stated Software AG´s CFO, Arnd
Zinnhardt. "This is another important step in harmonizing the two
companies from an internal operational and process driven
perspective."

end of announcement euro adhoc
--------------------------------------------------------------------------------

ots Originaltext: Software AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Otmar F. Winzig
VP Investor Relations & Compliance
Tel.: +49 (0) 6151 92-1669
E-Mail: otmar.winzig@softwareag.com

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