Trading Update

Embargoed Release: 07:00hrs Friday 19th January 2007 SOPHEON PLC (`Sopheon' or the `Company') TRADING UPDATE Sopheon plc, the international provider of solutions that improve the business return from innovation and product development, announces that it expects total revenues for 2006 to meet market expectations, representing an increase of approximately 30% over 2005. Further, although the year-end close process is not yet complete, our initial workings indicate that this revenue performance will bring the group's EBITDA result to the breakeven level, which would exceed market expectations. During the past year we sold software licenses to 16 new customers, increasing the size of our licensee base to 87 companies. Twenty additional orders were received from existing customers for extension licenses to support expanded use of the software. Revenue growth in Europe was particularly strong, supported by significant business in Scandinavia. As in past years, several opportunities that were targeted for closure in 2006 did not conclude and remain under negotiation. The result is that the Company has a strong pipeline with which to start the new year. In addition, our annual recurring revenue base coming into 2007 has grown to almost £1.7m. Financial expectations noted above are subject to the completion of the year-end financial close and audit processes. Sopheon plans to issue its 2006 preliminary results on 29 March 2007. Sopheon's Chairman, Barry Mence said: `Our revenue and earnings performance reflect the substantial progress we made during 2006 in strengthening the underlying fundamentals of our business. Just as importantly, we are confident that our momentum going into 2007 will allow us to build on these advances. We are delighted by the implications for our ability to return additional value to our shareholders.' For further information contact: Barry Mence, Chairman Sopheon plc Tel : + 44 (0) 1483 685 735 Arif Karimjee, CFO Andrew Tan Hansard Group 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 product innovation. The Sopheon Accolade® system automates gate or phase-based product development processes and provides strategic decision support that allows companies to increase revenue and profits 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.

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Sopheon (SPE)
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