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

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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."

Further inquiry note:
Otmar F. Winzig
VP Investor Relations & Compliance
Tel.: +49 (0) 6151 92-1669
E-Mail: [email protected]
end of announcement euro adhoc
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company: Software AG
Uhlandstr. 12
D-64297 Darmstadt
phone: +49 (0)6151 92 1899
FAX: +49 (0) 6151 92 1933
mail: [email protected]
WWW: http://www.softwareag.com
sector: Software
ISIN: DE0003304002
indexes: TecDAX, CDAX, HDAX, Prime All Share, Technology All Share
stockmarkets: official dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, Hannover
language: English

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