Trading Update

Embargoed Release: 07:00hrs Friday 15 July 2005

                                  SOPHEON PLC                                  

                         ('Sopheon' or 'the Company')                          

                                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 on the first half of 2005.

As previously announced, the Company was endeavouring to close on several
transactions prior to the end of June. A number of sales were concluded
following Sopheon's Annual General Meeting, bringing the count for the first
half of the year to eleven new and extension license sales among a total of
twenty sales transactions. The new licenses included our first sale in
Australia, through the new reseller in that territory. However, a further four
licenses that were expected to close in June did not complete. Of these, three
were verbally committed in June and remain in advanced contract discussions
today. This includes two that are of relatively significant size.

The delay in closing the above four transactions has restricted license revenue
compared to the equivalent period in 2004. Offsetting this, maintenance and
services revenues have increased by 50%, reflecting greater stability in the
recurring revenue base of the business. The overall effect is that revenue
reported for the first half will be moderately below that reported for the same
period in 2004. We expect that the pending contracts will come through in the
third quarter, along with new transactions from a pipeline that continues to
bring in additional prospects.

Barry Mence, Chairman, commented:

'We are,of course,disappointed that we were not able to drive all the
transactions we hoped for to closure in June. However, we remain positive about
the underlying direction of our business,with the strategic opportunities
available to us, and with our potential for growth in a market that is building
momentum.'

For further information contact:

Barry Mence, Chairman  Sopheon plc                  Tel : + 44 (0) 1483 685   
                                                    735                       
Arif Karimjee, CFO                                                            
                                                                              
Adam Reynolds          Hansard Communications       Tel : + 44 (0) 207 245    
                                                    1100                      
Andrew Tan                                          + 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 development. The
Sopheon Accolade® product development system automates gate- or phase-based
product development (PD) processes and provides strategic decision support that
allows companies to improve innovation, cut product development spending waste
and shorten time to market. 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.

                                      Sopheon preliminary results 2002 / page 2