THIRD QUARTER TRADING UPDATE

EMBARGOED RELEASE 07:00 HOURS                                   20 October 2005

                                  SOPHEON PLC                                  

                         THIRD QUARTER TRADING UPDATE                          

In accordance with the requirements of Euronext Amsterdam, Sopheon plc
('Sopheon') issues its trading update for the third quarter of 2005. The third
quarter is traditionally quiet in the software industry, but the value of
Sopheon's new sales orders taken during the quarter significantly exceeded the
equivalent period in 2004, and was broadly equal to the total new sales
achieved in the first six months of 2005. During the third quarter, including
extensions, Sopheon signed eight license sales and four proof of concept
engagements, in addition to several incremental consulting assignments from
existing clients.

In our results statement for the six months to 30 June 2005, we identified
seven license opportunities as larger and more complex than the historic
average. Of these, two have now concluded in a license order (included in the
total count of eight for the quarter) and four are engaged in proof of concept
activities. One of these has already contracted for its license, subject to an
acceptance decision in the fourth quarter. The seventh opportunity remains in
contract negotiations; this is also one of three opportunities carried forward
from the second quarter, of which the other two have concluded in a license
order.

The volume of service revenues continues to show momentum in conjunction with
license sales and proof of concept activity. As indicated in our interim
statement, we have continued to develop our partnerships to expand our
implementation capacity and to act as a source of introductions to potential
new customers. During the period we formed relationships with three leading
consultancies in product development, each with an international footprint.
Further details will be announced in due course. In addition, to support both
current needs and anticipated growth, we have recruited a senior IT executive
to lead service delivery in Europe. Amit Eitan has 26 years experience in
leading international IT organizations, and will be based in our offices in
Maastricht.

Initial findings from our research into the application of our European
Accolade-based healthcare solution into the US market have been positive. We
are now considering how best to achieve progress in this area without
disrupting activities in our core vertical markets.

The recent sales have led to good revenue growth over the first and second
quarters of 2005, however a proportion of the revenues deriving from these new
sales will not be booked until next year. Nevertheless, Sopheon has
demonstrated renewed commercial progress in the third quarter, and at the date
of this report, visibility of 2005 revenues stands at £4.1 million, which is
95% of the revenues recorded in 2004. Visibility includes new orders, recurring
maintenance streams, and contracted license revenues conditional on acceptance
decisions. It does not include potential license sales to other customers under
proof of concept, which along with several other new license opportunities, are
being closely pursued for closure before year end. Our reported performance
remains sensitive to the timing, value and profile of individual sales events.
However the fourth quarter is typically a busy one for software businesses and
this was certainly true for Sopheon in 2004. Our sales teams are focused on
active pipelines with substantial sales potential, and are working hard to
close out the final months of 2005 with strong momentum.

Sopheon's Chairman, Barry Mence said:

'Sopheon's third quarter sales performance has been higher than the seasonal
norm and this return to growth, together with our pipeline of potential
business for the final quarter of 2005, gives us confidence that we will have a
strong finish to the current year.'

For further information contact:

Barry Mence, Chairman   Sopheon plc                  Tel : + 44 (0) 1483 685   
                                                     735                       
Arif Karimjee, CFO                                                             
                                                                               
Andrew Tan              Hansard Communications       Tel : + 44 (0) 207 245    
                                                     1100                      
                                                     + 44 (0) 7957 203 685     
                                                                               
Floor van Maaren        Citigate First Financial     Tel : + 31 (0) 205 754 010

About Sopheon

Sopheon (LSE: SPE) is an international provider of software and services that
help organizations improve the business impact of innovation. The Sopheon
Accolade® product portfolio and process management system automates gate- or
phase-based product development (PD) processes and provides strategic decision
support that allows companies to cut product development spending waste and
generate more revenue from new products. Sopheon is listed on the AIM market of
the London Stock Exchange and on the Euronext in the Netherlands. For more
information, please visit www.sopheon.com.