Software AGInvestor Roadshow USA

July 2003

Investor Roadshow USA July 2003 2

Software AG Profile

Germany’s second largest software vendor

In the high-end, mission-critical IT business since 1969

Worldwide customer base of several thousand blue chip

companies and public sector organizations

Leader in XML system technology (DBMS and

integration)

System integrator for own products and solutions

Listed at Frankfurt stock exchange (TecDAX)

Market Cap 325 mio. € / 375 mio. $ - Free Float: 68.4%

Investor Roadshow USA July 2003 3

3

1985

Established First Platform

Independent Language

1983

TAPS (Trade Analysis & Process System) World’s Largest Clearing House System

1998

Introduced First XML Server

1997

First company to port DCOM to Mainframe

2000

First Mobile Fleet Mgmt System

2001

SCP Award Received 5 years in a row

2002

Over 5000 Customers Worldwide

2001/2002

Named Global Market Leader for XML Servers, IDC Profitable

2001

First Database to Utilize IBM’s New 64 bit Virtual Storage Architecture for Mainframe

1979

First Mainframe 4GL

1969

Software AG Foundedin Darmstadt

1991

Introduced First Service Broker for Distributed Applications

1971

First MainframeDatabase

1973

Software AG

AmericasFormed

Our History

Investor Roadshow USA July 2003 4

Global Business

Four Business Regions (share of revenue 2002):

Americas (35%)

Southern/ Western Europe (26%)

Central/ Eastern Europe (24%)

Asia/Northern Europe (15%)

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Source of Revenue / Business Lines

Project Services(Consulting and Implementation)

Licensing of Software ProductsMaintenance (24x7 world wide)

Product Business

0

20

40

60

80

100

120

140

160

180

1999 2000 2001* 2002 2003

(in mio. euros)

* first consolidation of US acquisition

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1999 2000 2001* 2002

Results

(in mio. euros)

* first consolidation of US acquisition

-40

-20

0

20

40

60

80

100

6669

91

38

67

39

70

-19

83

62 62

110

54

3234

41

366 417 589 475

Operating result Net profit Op. cash flowOp. EBITARevenue

Strategy

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          XML Server

- native XML server

- Storage, management, publishing and exchange of XML documents

- Extremely fast and reliable database

- Available on all major platforms

- For large and mission-critical applications

- Integration server

- Leveraging legacy systems for use in new (e-)business solutions

- Development platform

- For large-scale (e-)business applications

Core Products

Investor Roadshow USA July 2003 9

Tamino XML Server sold more than 500 times

Great success with XML technology in projects

Daimler Chrysler – content management system (xDWS)

Local government in UK – e-government portal (IESD)

Vodafone – document management

North American Logistics (Van Lines) – Mobile field service application

California State Board of Equalization – e-filing

EntireX serves as (XML) integration server

Technologically and economically very attractive customer

solutions will be converted into standardized solutions

Strategy Realignment

Investor Roadshow USA July 2003 10

Software AG PortfolioEvolving from Technology to Solutions

Products Capabilities Solutions

• Tamino

• Communicator

• Mediator

• Adabas/Natural

• Partners

• Content

Management

• Digital Library

• Mobile

• Data Exchange

• Web Enablement

• Data Integration

• Self-Service Portals

• Content Suite

• Mobile Suite

• Partner Solutions

• Regional Solutions

• Individual Customer

Solutions

Committed to delivering value for our customers

Investor Roadshow USA July 2003 11

Current solution-business situation

Expansion of Portfolio with Solutions

Future solution business

Business Lines

Develop a custom application

Core products (Tamino, EntireX,Adabas/Natural)

Delivery to customer

Project services/system integration

Product business

(Licensing and Maintenance)

Standardized solution platform

Modify a solution to meet customer requirements

Core products (Tamino, EntireX,Adabas/Natural)