EANS-Adhoc: Software AG / RESULTS AND LICENSING REVENUES EXCEED MARKET EXPECTATIONS IN THE 3RD QUARTER 2012

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ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
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quarterly report

12.10.2012

- License revenue in the Business Process Excellence (BPE) division
rose by 20 percent - EBIT of EUR60 to EUR62 million - BPE returns
double-digit license growth in all regions - Stable ETS business
compared to Q3, 2011 - Full year 2012 forecast confirmed

Darmstadt, 12-10-2012 - Software AG (Frankfurt TecDAX: SOW) today
pre-announced its key figures for the 3rd Quarter, 2012 after an
initial consolidation of its financial numbers (all figures
preliminary, rounded and subject to change).

Development of license revenues

Software AG reported software license revenues, the key growth
indicator, of around EUR81 million in the third quarter. This
represents an increase of ca. 8 percent over the very strong previous
year's third quarter (EUR74.7 million) and significantly exceeds
market expectations. In Business Process Excellence (BPE), license
sales rose by 20 percent to ca. EUR50 million (previous year: EUR41.7
million). This positive development was based on all regions
reporting double-digit revenue growth. The sales offensive in North
America, in which the company has been investing since the beginning
of the year, delivered strong growth for the second consecutive
quarter. Europe also continued its positive development. Moreover,
the "Big Data" products from Terracotta continued their dynamic
growth and contributed some EUR5 million license revenue in the 3rd
quarter, repeating the record sales of the 2nd quarter record.

In the traditional Enterprise Transaction Services (ETS) division,
license revenue was approximately EUR30 million, almost at the high
level of 2011 (EUR31.6 million), contributing to the further
stabilization of the classic database business.

Development of maintenance and services revenues

Group maintenance revenue increased in the 3rd Quarter of 2012 by ca.
4 percent to about EUR98 million (previous year: EUR94.2 million),
with both the BPE and ETS divisions contributing approximately EUR47
million each. Group services revenue in the quarter amounted to
approximately EUR78 million (previous year: EUR105.2 million) of
which one third was contributed by IDS Scheer Consulting,
implementing SAP solutions. The background to this sales decline is
the concentration of the consulting business on process-driven SAP
solutions in selected core markets.

Total revenue and income for the 3rd Quarter 2012

Due to reduced services revenues, total Group sales amounted to
EUR257 million (EUR274.6 million in Q3, 2011) but reached the high
level of the seasonally stronger 2nd quarter of 2012 (EUR258.6
million). The operating result (EBIT according to IFRS) was EUR60 to
EUR62 million, above the level of the previous quarter of the current
year (EUR57.1 million). Due to the currently higher expenses based on
the development and expansion of the marketing and sales organization
for the new growth products, particularly in the U.S., and this
year's charges arising from the focus of the consulting business, the
operating profit was below the extraordinarily strong previous year's
quarter (EUR72.0 million).

Development of the first 9-months 2012

Dynamic BPE license sales was approximately EUR131 million (previous
year: EUR112.1 million) in the first 9 months. This is an increase of
about 17 percent. The ETS business 9-month license revenues were
slightly above the previous year at EUR89 million (EUR87.2 million).
Product revenues (licenses and maintenance) at the group level
climbed in the 9-month period by about 6 per cent to around EUR515
million (previous year EUR484.7 million). Marked by the consolidation
of the consulting business, sales and earnings in the services
business were below the previous year's. Accordingly, consolidated
sales in the first 9-months were EUR770 million (previous year
EUR804.3 million). The operating result was in the range of EUR172 to
EUR174 million (previous year: EUR190 million).

Outlook

The dynamic growth in license sales, driven by the innovative BPE and
Terracotta products and strengthened by stable ETS development
positively impacted the first 9 months of fiscal 2012 and is expected
to continue in the 4th quarter. Therefore Software AG confirms its
forecast for the full year. The company will provide refined guidance
with the full disclosure of its quarterly results on 30 October 2012.

Further inquiry note:
Robert Adolph
Senior Manager Investor Relations
Tel.: +49 (6151) 92 1237
E-Mail: robert.adolph@softwareag.com

end of announcement euro adhoc
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issuer: Software AG
Uhlandstr. 12
D-64297 Darmstadt
phone: +49 (0)6151 92 1899
FAX: +49 (0) 6151 92 1933
mail: investor.relations@softwareag.com
WWW: http://www.softwareag.com
sector: Software
ISIN: DE0003304002
indexes: TecDAX, CDAX, HDAX, Prime All Share, Technology All Share
stockmarkets: free trade: Hannover, Berlin, Hamburg, Düsseldorf, Stuttgart,
regulated dealing/prime standard: Frankfurt
language: English