Trading Update

Embargoed Release: 07:00hrs Wednesday 28 January 2008

                                  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,
announces significant progress in year-on-year operating performance. Total
revenues for the year ended 31 December 2008 are expected to exceed £9 million
compared to £6.3 million in 2007. The year-end close process is not complete,
but initial indications are that the Group's EBITDA result will be in line with
analyst expectations of £900,000. The EBITDA result in 2007 was £113,000.

License fees comprised a higher percentage of the revenue mix in 2008 than in
the prior year. Approximately 65% of revenues in 2008 were derived from
existing customers, demonstrating their commitment to Sopheon solutions and
underpinning the revenue potential for the coming year. We entered 2009 with a
base of recurring revenue - comprising annual maintenance, hosting and rental
license contracts - that exceeded £3.6 million. Adding ongoing services
projects contracted in 2008 to this recurring base, takes full-year revenue
visibility* for 2009 to over £4 million. Looking ahead, the sales pipeline
remains resilient, in spite of the economic turmoil. The Group has designed its
software to help companies that need to exercise cost control in the
short-term, while driving forward innovation to meet their long-term strategic
goals. In the current climate, this is a strong selling point for Sopheon's
solution. Nevertheless, the Group has adopted a prudent stance in its cost
management, and will continue to do so in these uncertain times.

As at 31 December 2008, the Group had gross cash balances of over £2.5 million.

Financial expectations noted above are subject to the completion of the
year-end financial close and audit processes. Sopheon plans to issue its
preliminary results for the year ended 31 December 2008 on 26 March 2009.

* A definition of how visibility is calculated was provided in our announcement
of 25 June 2008.

Barry Mence, Chairman, commented:

"We are very pleased to show such material progress in 2008. Market turbulence
makes it hard to predict business development in 2009. We are however very
encouraged by the apparent match between our software and the needs of major
corporations looking to achieve cost containment while continuing to invest in
innovation to ensure their future. Our solutions are ideally placed to support
such companies in their efforts to achieve this objective. "


For further information contact:

Barry Mence, Chairman   Sopheon plc                  Tel : + 44 (0) 207 245    
                                                     1100                      
Arif Karimjee, CFO                                                             
                                                                               
Vikki Krause            Hansard Communications       Tel : + 44 (0) 207 7515   
                                                     922906                    
                                                                               
Paul Davies             Seymour Pierce Corporate     Tel: [phone] 
                        Finance                                                
                                                                               
Claire Verhagen         Citigate First Financial     Tel : + 31 (0) 205 754 010

About Sopheon

Sopheon (LSE:SPE) is an international provider of software and services that
help organisations improve the business impact of product innovation. Sopheon's
Accolade® solution automates the product innovation process and provides
decision support for the management of product portfolios. Its Vision
Strategistâ„¢ offering automates the strategic product roadmapping process,
allowing users to visualise and forecast the future of products, markets and
technologies. 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.