Sopheon plc, the international provider of software and services that improve the financial return from innovation and product development investments, has today placed 4,347,826 ordinary shares at 23p per share to raise £1 million (approximately before expenses). Application has been made for the new ordinary shares to be admitted to trading on AIM and dealings are expected to commence on 3 June 2005. These funds will increase the Group’s cash resources at the end of May to over £2 million, and will enable Sopheon to take timely advantage of possible new opportunities for business expansion.

The commercial environment in the second quarter of 2005 is proving similar to that in which Sopheon ended 2004, with activity levels high, potential deals accumulating, and a focus on achieving closure on targeted sales by period end. Meanwhile, the rapid evolution of the product life cycle management (PLM) market is increasing the range of potential alternatives available to Sopheon in its development and implementation of strategies for continued growth. This is underlined by the development of the Group’s relationship with Microsoft and complementary high levels of interest from other partner candidates, in addition to strong positive market reaction to the recent release of Accolade Version 6.0. Current or potential opportunities include new applications for Accolade, entry into new vertical markets, further expansion of sales channels, technology acquisitions and possible M&A activity. If and when good strategic opportunities are identified, the board believes that Sopheon must have the resources to act quickly, in order to optimize its growth prospects and position itself for market leadership.

Sopheon’s Chairman, Barry Mence said:
"With the new release of Accolade and our rapidly evolving strategic relationships, we believe the time is right to strengthen our ability to act quickly and independently if the right opportunity arises."