Software AG (TecDAX, ISIN DE 0003304002 / SOW) today signed a contract with Prof. Dr. Dr. h.c. mult. August-Wilhelm Scheer and Prof. Dr. Alexander Pocsay relating to the sale of a total of approx. 47.68 percent of the outstanding shares (this corresponds to 15,332,622 shares) of IDS Scheer AG (TecDAX, ISIN DE 0006257009 / IDS). The sale of shares will be part of a voluntary public tender offer by SAG Beteiligungs GmbH, a wholly-owned subsidiary of Software AG, starting in the current quarter. Software AG will offer €15 in cash per outstanding share of IDS Scheer capital. The offer will be made on and subject to the terms and conditions yet to be communicated in the offer document and in particular, it is likely to be made subject to clearance by the competent merger control authorities. Founder Prof. Scheer and co-founder Prof. Pocsay have already undertaken to accept the offer for all shares in IDS Scheer AG held by them.

The transaction will create a global vendor of infrastructure software and Business Process Management with more than 6,000 employees and more than €1 billion in sales. Software AG’s strengths, technology leadership in middleware products, financial strength and global presence, will be supplemented by IDS Scheer's skills in the analysis and mapping of business processes, the strong partner network and the large service presence in their approx. 7,500 customers. IDS Scheer offers deep industry expertise in vertical industries, direct access to vertical markets and a strong position in the SAP consulting business.

The combination of both leading technologically and complementary product portfolios for the digitization and implementation of business processes will be unique and will give Software AG a sustainable and strengthened competitive position in a consolidating software market.

The joint strategy is clearly growth-oriented. The growth drivers will be increased sales of the combined product offering and the specialist expertise of IDS Scheer's consultancy business. This consulting expertise is of use for the customer-specific implementation of Service-Oriented Architectures (SOA) and BPM / BPA solutions, particularly in SAP environments. The combination of the two successful business models is expected to be accretive to Software AG’s operating earnings per share already in the first full fiscal year of consolidation (2010).

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With more than 1,000 U.S.-enterprise customers and 700 employees, Software AG's U.S. operation contributes one third of the company's total revenue and is Software AG's largest market presence and R&D location. Software AG has operated nationwide in the U.S. since 1973 through a fully-owned subsidiary, Software AG USA Inc., which is headquartered in Reston, Virginia – also an R&D hub for the company’s core data management and integration technologies. R&D labs for the development of Software AG’s webMethods product suite – offering SOA integration and BPM solutions – include facilities in San José/Silicon Valley, Seattle and Denver. For more information, visit www.softwareag.com/us.

Software AG is the world’s largest independent provider of Business Infrastructure Software. Our 4,000 global enterprise customers achieve business results faster by modernizing, integrating and automating their IT systems and processes. As a result, they rapidly build measurable business value and meet changing business demands. Based on our solutions, organizations are able to liberate and govern their data, systems, applications, processes and services – achieving new levels of business flexibility.

Our leading product portfolio includes solutions for high performance data management, developing and modernizing applications, enabling service-oriented architecture, and improving business processes. By combining our technology with industry expertise and best practices experience, our customers improve and differentiate their businesses – faster.

Software AG has 40 years of global IT experience and over 3,500 employees serving customers in 70 countries. The company is headquartered in Germany and listed on the Frankfurt Stock Exchange (TecDAX, ISIN DE 0003304002 / SOW). Software AG posted total revenues of €721 million in 2008.

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• Software AG Announces IDS Scheer AG Takeover Offer