Interim Results

Sopheon PLC
28 August 2002


FOR IMMEDIATE RELEASE                                           28 August 2002



                                  SOPHEON PLC

          RESULTS AND BUSINESS REVIEW FOR THE 6 MONTHS TO 30 JUNE 2002


Sopheon plc ('Sopheon'), the international provider of software-based solutions
and services for knowledge intensive applications announces its unaudited
interim results for the six months ended 30 June 2002.


HIGHLIGHTS:

- Turnover: £6.5m (2001 : £6.1m).
  LBITDA: £5.3m (2001 : £5.7m).
  Period end cash of £7.1m.

- Seventy-seven new contracts and eighty-five percent retention rate for
  the Information Management division.

- Four new Accolade orders, two extensions and four pilots signed.

- Integration of Accolade and Organik completed.

- Further cementing of Sopheon's market profile with the company and its
  offerings referenced or profiled in twenty three business analyst reports, in
  addition to over two hundred and fifty instances of media coverage year to 
  date.


Sopheon's Chairman, Barry Mence said :

'Even though market conditions have been the most difficult since the foundation
of Sopheon, we have been encouraged by increased new pilot and licence sales of
Accolade and continued new business wins in our Information Management division.
We will continue to focus on developing the substantial potential these
complementary business units offer whilst maintaining a tight control on costs.
Our pipeline of prospective business for both units remains healthy and even
though we plan with the expectations of similar market conditions, we are well
placed to capitalise upon the opportunities any upturn might offer.  This,
coupled with increasing validation of our strategy from the business analyst
community, gives us continued confidence in the future prospects of the Group.'



FOR FURTHER INFORMATION CONTACT:

Barry Mence, Chairman            Sopheon plc                               Tel : + 44 (0) 1483-883000
Arif Karimjee, CFO               Sopheon plc                               Tel : + 44 (0) 1483-883000
Steve Liebmann                   Buchanan Communications                   Tel : + 44 (0) 20-7466-5000
Barbara Jansen                   Citigate First Financial                  Tel : + 31 (0) 205-754-080



About Sopheon

Sopheon (LSE:SPE) is an international provider of software and services that
enable organizations to more efficiently access internal and external
information and turn it into the knowledge to compete.  Sopheon serves nearly
half of the technology-driven companies on the Fortune 500, providing
process-specific software applications that are pre-loaded with specialized
content and access to human expertise.  They include the Web-enabled Sopheon
Accolade(R) product development system, the award-winning Teltech.com(R)
Web-based research portal for technical and business professionals, and Organik
(R) expertise-sharing software.  Sopheon's European headquarters are in
Guildford in the U.K., and its U.S. headquarters are in Minneapolis.  The
company also has operating bases in Germany, the Netherlands and Scotland.
Sopheon is listed on the Alternative Investment Market of the London Stock
Exchange and on Euronext in the Netherlands.  For more information, please visit
www.sopheon.com.



CHAIRMAN'S STATEMENT

OVERVIEW

Consolidated revenues for the period totalled £6.5 million (2001 : £6.1
million).  The economic environment has remained challenging throughout the
period, however we have continued to invest time, energy and resources into
building on our leading position in the market for solutions which address the
information and management needs of the research and development community.  The
EBITDA loss was £5.3 million for the period (2001 : £5.7 million) and gross cash
resources were approximately £7.1 million at 30 June.

MARKET POSITIONING

CEO's participating in a June survey by PricewaterhouseCoopers ranked product
development second in importance only to innovation as a source of competitive
advantage. Recent research from IT advisory firm AMR Research noted that 'the
most interesting phenomenon seen in the product lifecycle management (PLM)
market in 2001 was the dawning awareness among vertical industry markets that
product development is a vital business process and that information technology
can help.'  Advisory firm CIMdata released research findings in April that
forecast overall PLM investments to continue growing at a strong pace over the
next five years.  The firm predicted that the portion of the PLM market that
encompasses product development, will exceed $4.8 billion globally in 2002 and
increase at a compound annual growth rate of 25% through 2006.

Sopheon has positioned itself and is increasingly viewed as a leading supplier
of product development solutions.  Since the beginning of the year, the company
and its offerings have been referenced or profiled in twenty-three reports from
firms such as Gartner, Giga, META Group, IDC and AMR Research that advise
end-users on which products they should use and with which suppliers they should
do business.  In another measure of Sopheon's expanding market presence, in the
year-to-date there have been more than 250 instances  of media coverage related
to Sopheon and its process solutions by publications ranging from Business 2.0,
InformationWeek and R&D to Food Engineering, Chemical Market Reporter and
Machine Design.

INFORMATION MANAGEMENT

Our IM (Information Management) division focused on content and analytical
services, continued to deliver business both from recurring contracts and from
new customer wins, contributing 74% of our total revenue mix.  As predicted, it
has been and remains a challenging time for our IM operations in both Germany
and North America and this has put pressure both on revenues and on gross
margins. Nevertheless, a total of 77 new contract wins were signed during the
period.  Examples of new assignments include business with Intervet, Drukker and
3M. In addition, 81 extensions were signed to existing annual subscription based
customer contracts in North America resulting in an average retention rate of
85%, recovering from a fall in renewal values during the bleak environment in
the final quarter of 2001, which had left a difficult legacy for the start of
the current year.  Furthermore, the IM business is developing new routes to
market by packaging its services around strategic business processes such as
product development and intellectual property management, leading to new
assignments with companies such as Bausch & Lomb, Polaroid and Hoffmann-LaRoche.

BUSINESS PROCESS SOLUTIONS

The BPS (Business Process Solutions) division focused on software applications,
continued to develop well with over 50% of this business during the first half
of 2002 generated around Sopheon's packaged products, compared to under 20% in
the equivalent 2001 period, when we announced the launch of Accolade.  During
the period we announced several Accolade successes: Glatfelter, Acist Medical
Systems, Sappi Fine Paper, and an international materials business that cannot
be identified because of confidentiality constraints. Two agreements were also
signed with existing clients to extend usage of Accolade within their
organisation.

In addition to these full licenses, four organisations have made commitments for
a commercial assessment or pilot exercise. While initially of relatively low
value, if successful, such arrangements are expected to lead to full
implementations in due course. A typical pilot period would be between 60 and 90
days. Coupled with the industry analyst comment referred to earlier and the
remarkable levels of interest in our marketing programs - over 2,000 leads
generated and over 580 attendees at our seminars and webinars - these pilot
orders emphasize that Accolade is in a meaningful market space where businesses
are prepared to invest, but in tune with the current environment, they tread
carefully and look for persuasive return on investment before making a
substantial financial commitment.  The board continues to believe that Accolade
addresses this criterion, and that an objective of reaching a total of
approximately 30 commitments by year-end is not unrealistic.

A new release of Accolade is imminent and the integration of Organik(TM)with our
Accolade and IM offerings has just been completed.  We believe this delivers the
industry's first business process management solution that enables access to
internal and external experts as well as published information sources.

Elsewhere, in line with our announced strategy, contribution from bespoke work
continues to decline while remaining an area where customers rely on our skills
and experience.

COST BASE

Our investment in marketing, sales and product development has remained high
during the first half of the year, producing the marketing results and new
developments referred to above.  Nevertheless, we have continued to actively
monitor and control costs after the sharp reduction in the cost base which
followed our acquisition of Orbital, with further actions having been taken in
recent months.

OUTLOOK
       
With Sopheon's software products showing increasing capability and stature
following a major development effort, coupled with a highly promising market
opportunity there is, in the view of the Board, real potential for revenue
growth and further cost efficiencies. The significant IM revenue base includes a
large number of established recurring contracts, providing critical mass and
stability to the group's business infrastructure. Whilst markets remain cautious
on both sides of the Atlantic and conversion of opportunities remains difficult,
the strength of our sales and marketing funnels, both in number and value,
remains encouraging notwithstanding the slow speed of conversion. The Board will
continue to nurture this potential but will couple it with a continuous focus on
cost control, with adjustments to the operating plan being made as appropriate.
Going into 2003, we remain mindful of the importance of achieving positive cash
flow generation and maintaining sufficient cash resources, as well as Sopheon's
strategic objective of becoming a leading international provider of software and
services within the research and development communities of major corporations.


Barry Mence                                                      28 August 2002
CHAIRMAN




GROUP PROFIT AND LOSS ACCOUNT FOR THE 6 MONTHS TO 30 JUNE 2002
(UNAUDITED)


                                                           6 months         6 months         6 months
                                                         to 30 June       to 30 June       to 30 June
                                                               2002             2001             2000
                                                              £'000            £'000            £'000

Turnover                                                      6,511            6,068            3,098
Cost of sales                                               (4,797)          (4,272)          (1,922)

Gross profit                                                  1,714            1,796            1,176
Administrative, research and development and
distribution expenses                                       (7,717)          (8,323)          (3,583)

Operating loss before amortisation of goodwill              (6,003)          (6,527)          (2,407)
Amortisation of goodwill                                    (2,961)          (6,140)          (1,414)

Operating loss                                              (8,964)         (12,667)          (3,821)
Bank interest receivable                                        168              186              513
Interest payable and similar charges                          (165)             (84)             (79)

Loss on ordinary activities
before and after taxation                                   (8,961)         (12,565)          (3,387)

Loss per share- basic and diluted                           (10.9p)          (32.5p)           (9.9p)

Loss on an EBITDA basis                                     (5,318)          (5,667)          (2,407)



STATEMENT OF RECOGNISED GAINS AND LOSSES
(UNAUDITED)
                                                           6 months         6 months         6 months
                                                         to 30 June       to 30 June       to 30 June
                                                               2002             2001             2000
                                                              £'000            £'000            £'000

Loss for the financial period                               (8,961)         (12,565)          (3,387)
Exchange difference on retranslation of net assets
of subsidiary undertakings                                      147               16               59

Total  gains and losses recognised relating to the
period and since annual report                              (8,814)         (12,549)          (3,328)





GROUP BALANCE SHEET AS AT 30 JUNE 2002
(UNAUDITED)

                                                              As at            As at            As at
                                                            30 June           31 Dec          30 June
                                                               2002             2001             2001
                                                              £'000            £'000            £'000
Fixed assets
Goodwill and investments                                      7,909           10,893           24,669
Tangible assets                                               1,544            2,159            2,383
                                                              9,453           13,052           27,052
Current assets
Debtors                                                       3,537            3,592            3,020
Cash and short term deposits                                  7,093           13,344            8,074
                                                             10,630           16,936           11,094

Creditors: falling due within one year                        7,451            8,584            6,869

Net current assets                                            3,179            8,352            4,225

Total assets less current liabilities                        12,632           21,404           31,277

Creditors: falling due after more than one year               3,049            3,039            3,034
                                                              
                                                              9,583           18,365           28,243
Capital and reserves                                          
Called up share capital                                       4,141            4,116            4,990
Shares to be issued                                             465              465            1,084
Share premium account and merger reserve                     63,763           63,756           53,128
Other reserve                                                 5,455            5,455            2,417
Profit and loss account                                    (64,241)         (55,427)         (33,376)

Shareholders' funds (all equity interests)                    9,583           18,365           28,243




STATEMENT OF CASH FLOWS FOR THE 6 MONTHS TO 30 JUNE 2002
(UNAUDITED)
                                                                                6 months         6 months
                                                                              to 30 June       to 30 June
                                                                                    2002             2001
                                                                                   £'000            £'000

Net cash outflow from operating activities                                       (6,341)          (5,621)

Return on investment and servicing of finance                                          3              102
Capital expenditure and financial investment                                        (46)            (269)
Cash acquired with subsidiary company                                                  -            1,828
Management of liquid resources                                                     5,708            2,058
Financing                                                                            (4)            4,090

(Decrease) / Increase in cash excluding short term deposits                        (680)            2,188
(Decrease) / increase in short term deposits                                     (5,708)          (2,058)

(Decrease) / Increase in cash including short term deposits                      (6,388)              130





NOTES

Basis of preparation of interim financial information

The interim financial information has been prepared on the basis of accounting
policies set out in the group's statutory accounts for the year ended 31
December 2001.



Earnings per share

The calculation of basic loss per ordinary share is based on a loss of
£8,961,000 (2001: £12,565,000 and 2000: £3,387,000) and 82,501,632 (2001:
38,687,059 and 2000: 34,097,689) ordinary shares, being the weighted average
number of ordinary shares in issue during the period. The effect of all
potential ordinary shares is anti-dilutive in 2000, 2001 and 2002.



LBITDA

LBITDA represents loss before interest, tax, depreciation and amortisation and
also excludes non-recurring equity-based costs incurred in connection with
acquisitions.



Interim Report

This Interim Report is available from Sopheon's registered office at Stirling
House, Surrey Research Park, Guildford, Surrey GU2 7RF and from the Company's
website: www.sopheon.com.



Financial information

The financial information set out above does not constitute the Company's
statutory accounts as defined in section 240 of the UK Companies Act 1985 and is
unaudited. Statutory accounts for the years ended 31 December 2000 and 2001 have
been delivered to the registrar of companies and an unqualified audit opinion
was issued thereon.



Cautionary Statement

Sopheon has made forward-looking statements in this press release, including but
not limited to statements about the benefits of our products and services; our
acquisitions; financial results; product development plans and achievements; the
potential benefits of business relationships with third parties and business
strategies.  These statements about future events are subject to risks and
uncertainties that could cause Sopheon's actual results to differ materially
from those that might be inferred from the forward-looking statements.  Sopheon
can make no assurance that any forward-looking statements will prove correct.
Descriptions of some of the key risk factors that could negatively affect
Sopheon's future performance are contained in Sopheon's Form 20 - F Annual
Report, on file with the U.S. Securities and Exchange Commission.




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