Trading Update

Embargoed Release: 10:30 hrs, Friday 21 December 2007

                                  SOPHEON PLC                                  

                                  ("Sopheon")                                  

                                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. As 2007 draws to an end, we have continued to focus
our efforts on closing the large pipeline of business referred to in our
announcement of 25 October 2007. We have noted repeatedly in our communications
to the market that the timing of individual sales can have substantial impact
on our results, and this is proving a major factor as we close 2007. In the
last few days it has become clear that a number of the transactions we have
been focused on signing by the end of this year will not be concluded before
the first quarter of 2008. In particular, a small number of large transactions
comprising both new and extension deals - with a combined value potential of up
to £2 million in license alone, in addition to follow-on services and
maintenance - have now been deferred. Our confidence that this business will
still come to us remains high; we understand that the delays are due largely to
the logistical challenges posed by year-end business activity within our
customers' organizations, and in the majority of cases they have indicated that
these transactions will be finalized during the first quarter of next year.
Whilst disappointed, we continue to anticipate substantial revenue growth in
our business, but frustratingly, we no longer expect this to be reflected in
our financial results for the year ended 31 December 2007.

Despite the delays in certain major transactions, we have continued to sign new
business. Revenue visibility for the year now stands at approximately £6.1
million, and we are still pursuing a number of smaller opportunities to close
in the final weeks of this year. We reached a significant milestone during the
fourth quarter by signing the 100th licensee customer for our core software
platform. The new customers acquired through our acquisition of Alignent
Software in June, are of course over and above this milestone accomplishment.

We have also continued to make good progress with our ongoing product
development activities. This month we completed two significant projects.
First, we will soon release a new version of the former Alignent's Vision
Strategist product planning software that incorporates portfolio management
capabilities derived from our core Accolade product. This development is
generating considerable interest from the existing Vision Strategist client
base. Second, our product development organization has recently completed the
coding for the most significant new version of Accolade release in Sopheon's
history, which will extend the value and functionality of Sopheon's software
for the non-process manufacturing markets, including the large aerospace,
defence and automobile sectors. Market roll-out of Accolade version 7.0 will
begin in the first quarter of 2008.

Separately, as announced in June 2006, Sopheon filed a certification with the
US Securities and Exchange Commission ("SEC") on Form 15, to immediately
suspend its duty to file reports under the Securities Act of 1934. This has
saved us filing costs. However, the recent acquisition of Alignent could
potentially require us to resume SEC reporting, unless Sopheon terminates its
registration. Accordingly, pursuant to recently adopted Rule 12h-6(i) of the
Exchange Act, we will shortly be filing a certification with the SEC on Form
15F, in order to effect such termination. Sopheon's ordinary shares are not
traded on any US Stock Exchange, and this change will have no effect on the
trading of Sopheon's shares on AIM or Euronext.

Also on the corporate front, we have agreed terms to extend Sopheon's equity
line of credit facility with GEM Global Yield Fund Limited ("GEM") for a
further two year period through to 23 December 2009. GEM has agreed to
implement this extension at no cost to Sopheon. The facility has been used to
raise working capital only once, in March 2004, leaving approximately 90% of
the original €10m facility available under the extended agreement.

Financial expectations noted above are subject to the completion of the
year-end financial close and audit processes. We will provide shareholders with
a further update on 25 January 2008.

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     
                                                                              
Clare Verhagen         Citigate First Financial     Tel : + 31 (0) 205 754 010
                                                                              
David Newton           Seymour Pierce               Tel: + 44 (0) 207 107 8000

About Sopheon

Sopheon (LSE:SPE) is an international provider of software and services that
help organizations improve the business impact of product innovation. Sopheon's
solutions automate and govern the innovation process, enabling 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.