Acquisition

8 June 2006 Sage acquisition of German business management software vendor Bäurer The Sage Group plc ("Sage") has agreed to acquire Bäurer GmbH ("Bäurer"), a vendor of business management software, based in Germany, for an enterprise value of approximately £16 million, to be paid in cash. The acquisition is expected to complete within four weeks of this announcement. Bäurer is a vendor of a suite of advanced business management solutions for mid-market businesses, including industry-specific software for manufacturing. Bäurer has over 2,000 mid-market customers. Bäurer's revenue for the year ended 31 December 2005 was £16.0 million*. Earnings before depreciation and amortisation were approximately £1.2 million*. Paul Walker, Sage Chief Executive, commented, "Acquiring Bäurer strengthens our market position in Germany by providing advanced and industry-specific solutions for mid-market customers. Sage's customer service and marketing expertise will enable us to sell more software and services to Bäurer 's customer base." *All financial information calculated on the basis of £1 = Euro 1.450. Enquiries The Sage Group plc +44 (0) 191 294 3068 Paul Walker, Chief Executive Paul Harrison, Finance Director Phil Branston, Investor Relations Tulchan Communications +44 (0) 20 7353 4200 Kirstie Hamilton Julie Foster Notes to editors The Sage Group plc is a leading international supplier of accounting and business management software solutions and related products and services for small to medium-sized enterprises. Formed in 1981, Sage was floated on the London Stock Exchange in 1989 and the Group now employs over 10,000 people worldwide.

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