RESULTS FOR THE 6 MONTHS TO 30 JUNE 2006 and BUSINESS REVIEW AND OUTLOOK
Sopheon plc (“Sopheon”) the international provider of software and services that improve the return from innovation and product development investments, announces its unaudited interim results for the six months ended 30 June 2006 together with a business review and outlook. These results and the 2005 comparatives are reported under International Financial Reporting Standards (IFRS) as adopted for use in the EU.

HIGHLIGHTS:
• Financial performance reflects over 50% growth in revenue compared to the first half of 2005, with LBITDA approaching breakeven.
• Turnover: £3.0m (2005: £1.9m)
Loss for the period: £0.2m (2005: £0.9m)
LBITDA: £0.0m (2005: £0.7m)
• Recurring maintenance revenues are up 40% compared to a year ago, standing at £1.7 million annualized. At the mid year point, revenue visibility for 2006 was already £4.1 million, almost 90% of the total revenues recorded in 2005.
• Further penetration of our established markets in the chemicals, paper and food & beverage industries, in addition to signing major new clients in the consumer packaged goods sector. This includes the signing of Electrolux, our second major sale in Scandinavia. We also closed our first license sales in France and Israel.
• Introduction of Accolade® Accelerators that expand the capabilities of our core Accolade system, and encourage use of the solution by additional user communities both inside and outside of product development.

Sopheon’s Chairman, Barry Mence said:
“The underlying fundamentals of our business continued to show great progress in the first half of 2006 leading to significant improvement in our financial results. In our annual report on 2005 we said that we knew what we had to do, and we believed that Sopheon was on the right track. This is as true today as it was then, and we continue to look to the future with optimism.”