Ad hoc disclosure
Software AG to fully retain fiscal 2002 earnings
Darmstadt, Germany, February 28, 2003. The Supervisory Board of Software AG has today resolved to fully retain fiscal 2002 earnings. This move is designed to strengthen the Company’s equity base and to improve cash flow, increasing competitiveness.
Software AG’s strategic goal is to translate its proven technological expertise into new software products. The investment funds required for further growth will be sourced entirely from operating cash flow. It is stated Company policy to finance investment without resorting to borrowing. Moreover, seeking to raise capital via the stock market is inadvisable in the current climate.
At the same time, the prolonged downturn in the IT industry makes further cost-savings a necessity. The restructuring program initiated in 2002 will therefore be continued in 2003. The aim is to align the cost base with the current level of revenue, and to achieve a lasting improvement in profitability.
Software AG will present the audited financial statements for fiscal 2002 at a press conference to be held in Frankfurt on March 6.
New member of the Executive Board: The Supervisory Board has appointed Dr. Peter Mossack, Vice President Research and Development of Software AG, to the Executive Board as a deputy member.
NOTES TO THE EDITORS
About Software AG
Software AG is based in Darmstadt, Germany. Founded in 1969, Software AG continues to be Europe's largest and a leading global provider of system software and services enabling enterprise data integration and management. Software AG's products control the central IT processes of thousands of renowned companies worldwide including Lufthansa, Siemens, Citibank, Merck, DaimlerChrysler, Sony, BP and Telefonica. Software AG develops products and solutions that support the XML (Extensible Markup Language) standard. XML simplifies the exchange of documents and data as well as the integration of cutting-edge Web applications into traditional IT architectures. Software AG works with such sales and technology partners as Tridion, Stellent and IXOS. In 2002, the corporation achieved 475 million euros in total revenue. Software AG has offices in over 70 countries and currently employs a staff of about 3,000. http://www.softwareag.com
Contact Software AG: Eduard Smeets
Tel: 030 750 30 00
E-mail: eduard.smeets@softwareag.com
http://www.softwareag.nl
Contact pers: Marieke van Zuien (LEWIS Communications)
Tel: 040 235 46 00
E-mail: mariekev@lewispr.com
http://www.lewispr.com