Trading Update

Embargoed Release: 07:00hrs Thursday 19 July 2007

                                  SOPHEON PLC                                  

                          (`Sopheon' or the `Group')                           

                                TRADING UPDATE                                 

Sopheon plc the international provider of software and services that improve
the financial return from innovation and product development investments,
issues a trading update.

During the first half of 2007 we gained eight new licensed customers and closed
thirteen license extension orders, in addition to a number of consultancy and
services contracts. Repeat orders from the customer base are an increasing
feature of our business; ninety-six companies throughout the world now license
our Accolade software and many continue to buy additional products and services
from us. We expect to break through the milestone threshold of one hundred
licensees in the third quarter.

Sales activity levels during the first half of 2007 were considerably higher
than in previous years; twenty-one license transactions were completed,
compared to twelve during the same period a year earlier. However, revenues
reported for the period are expected to be comparable to those for the first
half of 2006. We have identified two contributory factors. First, currency
movements have had an effect due to the fall in the US dollar. Second, as we
have noted previously, revenue performance in a particular period can vary
dependent on the timing of individual transactions; in the first half of 2006,
our European business closed the largest sale in the history of the Group. No
singularly large sales were closed during the first half of 2007. Accordingly,
although we would clearly prefer to report a period-to-period increase, the
fact that we were able to achieve such revenues in spite of the factors noted
above is in our view a key sign of growing maturity of the business.

As announced, the acquisition of Alignent closed on 21 June. Including
Alignent, full-year revenue visibility incorporating booked revenue, contracted
services business and the run rate of maintenance contracts, stands at
approximately £4.9m. Looking forward, the sales funnel is robust. The number of
qualified prospects in our sales pipeline is up 30% compared to one year ago.
It is also worth noting that there are a number of potentially large deals in
today's prospect population. We remain confident that 2007 full-year
performance will show substantial improvement over 2006 in both revenue and
EBITDA.

The level of activity in our US business suggests that the Group is entering a
new, intense stage of growth. In order to help accelerate this transition and
ensure effective management of the associated expansion in scale, we have taken
steps to fortify our senior-management team. During the second quarter we added
executive leaders for our North American sales and client services
organizations. Each brings considerable experience from Lawson Software and
Oracle respectively.

We are now integrating the Alignent acquisition and look forward to leveraging
the substantial opportunities for its strategic product planning solution among
existing Alignent customers, Sopheon customers, and newly identified prospects
in aerospace and defense markets. Due diligence prior to the acquisition
indicated a clear need for improved product portfolio management among users of
Alignent's solution. Accordingly, we have initiated a campaign to offer these
customers the relevant Accolade modules. In the meantime, we continue to invest
heavily in product development. Based on these efforts, we will introduce new
versions both of Sopheon's Accolade system and Alignent's Vision Strategist by
the end of the year.

Sopheon plans to issue its 2007 interim results on 6 September 2007. As in
previous years, financial expectations referred to above are subject to the
completion of the financial close process, and certain interim review
procedures to be conducted by the Group's auditors.

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   
                                                                         
Frank Jansen          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® product innovation process and portfolio management 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.