Offer Update

Sopheon PLC 13 November 2001 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN CANADA, AUSTRALIA, THE REPUBLIC OF IRELAND OR JAPAN FOR IMMEDIATE RELEASE 13 November 2001 Sopheon plc ('Sopheon') Merger by way of recommended offer for Orbital Software Holdings plc('Orbital') Declared unconditional as to acceptances Sopheon and Orbital announce that the recommended all share offer for Orbital ('the Offer') on the terms and subject to the conditions set out or referred to in the Offer Document dated 22 October 2001, has been declared unconditional as to acceptances. As at 3.00 p.m. on 12 November 2001, the first closing date of the Offer, Sopheon had received valid acceptances in respect of a total of 27,456,737 Orbital Shares (representing approximately 61.0 per cent. of Orbital's current issued share capital). Prior to the commencement of the Offer, Sopheon had received irrevocable undertakings to accept the Offer in respect of their entire beneficial holdings from the Orbital Directors (and those of certain members of their immediate families and companies controlled by them), Kevin Dorren and Alan Slater, amounting in total to 10,374,764 Orbital Shares, representing 23.1 per cent. of Orbital's issued share capital. In addition, Novell, Inc. and The Hamilton Portfolio Limited signed non-binding letters of intent indicating their intention to accept the Offer in respect of their total beneficial holdings of Orbital Shares, being 5,173,931 Orbital Shares, representing a further 11.5 per cent. of Orbital's current issued share capital. Consequently, prior to the commencement of the Offer, Sopheon had received, in aggregate, irrevocable undertakings and letters of intent to accept the Offer in respect of 15,548,695 Orbital Shares (representing approximately 34.6 per cent. of Orbital's current issued share capital). Sopheon has received, in aggregate, valid acceptances in connection with above the irrevocable undertakings and letters of intent amounting to approximately 28.1 per cent. of Orbital's current issued share capital. This excludes The Hamilton Portfolio Limited, which has yet to confirm its acceptance of the Offer in respect of its shareholding of approximately 6.4 per cent. of Orbital's current issued share capital. The Offer has been extended and will remain open for acceptance until further notice. Ian Ritchie, Non-executive Chairman of Orbital, commented: 'Having reviewed all relevant strategic options, we asked Orbital's shareholders to support its Board's view that a merger with Sopheon would provide the best route forward, and we are now delighted to have secured a clear majority of acceptances. We would recommend that our remaining shareholders accept the Offer and benefit from the greater opportunities which we believe will be available to the Enlarged Group.' Barry Mence, Executive Chairman of Sopheon, commented: 'We are very pleased to have received such a level of acceptances from Orbital shareholders at this stage. We have been given the mandate to press forward with the integration of the two companies, with the aim of achieving our aspiration to be a leading provider of software and services within the R&D market for major corporations.' Save as otherwise disclosed in this announcement, neither Sopheon nor any of its directors, nor, so far as Sopheon is aware, any person acting in concert with Sopheon, owns or controls any Orbital Shares or has any option to purchase or subscribe for Orbital Shares, or any derivatives referenced to Orbital Shares. Unless the context otherwise requires, the definitions contained in the Offer Document dated 22 October 2001 apply in this announcement. Enquiries Sopheon plc Orbital Software Holdings plc Barry Mence Tel. +44 (0)1483 883 000 Ian Ritchie Tel. +44 (0)131 348 3000 Arif Karimjee Brian Gray HSBC Investment Bank plc Broadview International Limited John Mellett Tel. +44 (0)20 7336 9000 Tom S. Anthofer Tel. +44 (0)20 7968 3700 Dalia Joseph Roger Manship Buchanan Communications Steve Liebmann Tel. +44 (0)20 7466 5000 The Sopheon Directors accept responsibility for the information contained in this announcement other than the information relating to the Orbital Group, the Orbital Directors, their immediate families and related trusts and persons connected with the Orbital Directors. To the best of the knowledge and belief of the Sopheon Directors (who have taken all reasonable care to ensure that such is the case), the information contained in this announcement, for which they accept responsibility, is in accordance with the facts and does not omit anything likely to affect the import of such information. The Orbital Directors accept responsibility for the information contained in this announcement relating to the Orbital Group, the Orbital Directors, their immediate families and related trusts and persons connected with the Orbital Directors. To the best of the knowledge and belief of the Orbital Directors (who have taken all reasonable care to ensure that such is the case), the information contained in this announcement, for which they accept responsibility, is in accordance with the facts and does not omit anything likely to affect the import of such information. HSBC Investment Bank, which is regulated in the United Kingdom by The Securities and Futures Authority Limited, is acting exclusively for Sopheon and no one else in relation to the Offer and will not be responsible to anyone other than Sopheon for providing the protections afforded to customers of HSBC Investment Bank, or for providing advice in relation to the Offer or in relation to the contents of this announcement or any matter referred to herein. Broadview International Limited, which is regulated in the United Kingdom by The Securities and Futures Authority Limited, is acting exclusively for Orbital and no one else in relation to the Offer and will not be responsible to anyone other than Orbital for providing the protections afforded to customers of Broadview International Limited, or for providing advice in relation to the Offer or in relation to the contents of this announcement or any matter referred to herein. The attention of member firms of Amsterdam, London and the NASD is drawn to certain UK dealing disclosure requirements following the announcement of preliminary merger discussions between Sopheon and Orbital. That announcement (made on 14 September 2001) commenced an offer period ('the Offer Period') in accordance with the Code which is published and administered by the Panel. An offer period is deemed to commence at the time when an announcement is made of a proposed or possible offer, with or without terms. Sopheon has equity securities traded on the Amsterdam Stock Exchange, London Stock Exchange and through an ADR programme in the United States. The disclosure requirements referred to above are set out in more detail in Rule 8.3 of the Code. In particular Rule 8.3 requires public disclosure of dealings in relevant securities during the Offer Period by persons who own or control, or who would as a result of any transaction own or control, 1 per cent. or more of any class of relevant securities. Relevant securities include Sopheon and Orbital securities (including options and derivatives) and instruments convertible into Sopheon and Orbital securities, respectively. This requirement will apply until the end of the Offer Period. Where two or more people act pursuant to an agreement or understanding to acquire relevant securities, they are deemed to be a single person for the purposes of Rule 8.3. For the purposes of Rule 8.3 persons who manage investment accounts on a discretionary basis will be treated as controlling any relevant securities so managed by that person . Rule 8.3 does not apply to recognised market makers acting in that capacity. Disclosure should be made on an appropriate form no later than 12 noon London time on the business day following the date of the dealing transaction. These disclosures should be sent to the Company Announcements Office of the London Stock Exchange (fax number: +44 (0)20 7588 6057) and to the Panel's Monitoring Section (fax number: +44 (0)20 7256 9386 or email monitoring@disclosure.org.uk). The Panel requests that member firms advise those of their clients who wish to deal in the relevant securities of Sopheon and/or Orbital, whether in London, Amsterdam or the United States, that they may be affected by these requirements. If there is any doubt as to their application, the Panel should be consulted (telephone number: +44 (0)20 7638 0129, fax number: + 44 (0)20 7638 1554). Copies of appropriate disclosure forms may be obtained from the Panel's website www.thetakeoverpanel.org.uk. This announcement does not constitute an offer or an invitation to acquire or dispose of shares or securities. Additional notice to US holders of Orbital securities: A share offer by Sopheon for Orbital, if made, would involve an offer for the securities of a non-US company. Any such offer would be subject to disclosure requirements of the United Kingdom, which are different from those of the United States. Financial statements included in the Offer Document, if any, will have been prepared in accordance with foreign accounting standards that may not be comparable to the financial statements of US companies. It may be difficult for US holders of Orbital Shares to enforce their rights and any claim they may have arising under the US federal securities laws, since the issuer is located in a foreign country, and some or all of its officers and directors may be residents of a foreign country. US holders of Orbital Shares may not be able to sue a foreign company or its officers or directors in a foreign court for violations of the US securities laws. It may be difficult to compel a non-US company and its affiliates to subject themselves to a US court's judgement. The Offer will not be made, directly or indirectly, in or into, or by use of the mails or any means or instrumentality (including, without limitation, telex, facsimile transmission, telephone and internet) of interstate or foreign commerce of, or any facilities of a national securities exchange of, Canada, Australia, the Republic of Ireland or Japan and the Offer will not be capable of acceptance by any such use, means, instrumentality or facilities or from within Canada, Australia, the Republic of Ireland or Japan. Accordingly, copies of this announcement are not being, and must not be, mailed or otherwise forwarded, distributed or sent in or into or from Canada, Australia, the Republic of Ireland or Japan and persons (including, without limitation, custodians, nominees and trustees) must not mail or otherwise forward, distribute or send this announcement in or into or from Canada, Australia, the Republic of Ireland or Japan.

Companies

Sopheon (SPE)
UK 100

Latest directors dealings