Holding(s) in Company

For filings with the FSA include the annex  
For filings with issuer exclude the annex   

TR-1: Notifications of Major Interests in Shares                               

1. Identity of the issuer or the underlying issuer of existing                 
shares to which voting rights are attached:                                    
                                                                               
The Sage Group plc                                                             
                                                                               
2. Reason for notification                                        [Yes/No]     
                                                                               
An acquisition or disposal of voting rights                         Yes        
                                                                               
An acquisition or disposal of financial instruments which                      
may result in the                                                              
acquisition of shares already issued to which voting rights                    
are attached                                                                   
                                                                               
An event changing the breakdown of voting rights                               
                                                                               
Other (please specify):                                                        
                                                                               
3. Full name of person(s) subject to     Baillie Gifford & Co                  
notification                                                                   
obligation:                                                                    
                                                                               
4. Full name of shareholder(s) (if                                             
different from 3):                                                             
                                                                               
5. Date of transaction (and date on      13 December 2007                      
which the                                                                      
threshold is crossed or reached if                                             
different):                                                                    
                                                                               
6. Date on which issuer notified:        14 December 2007                      
                                                                               
7. Threshold(s) that is/are crossed or   10%                                   
reached:                                                                       

8: Notified Details                                                            
                                                                               
A: Voting rights attached to shares                                            

Class/type of  Situation previous to         Resulting situation after         
shares            the triggering             the triggering transaction        
                    transaction                                                
                                                                               
If possible    Number of  Number of  Number of    Number of      Percentage of 
use              shares     voting    shares    voting rights    voting rights 
ISIN code                   rights                                             
                                                                               
                                               Direct Indirect  Direct Indirect
                                                                               
Ordinary Share  143082367      10.99 129464025        129464025           9.33%
                                                                               
GB0008021650                                                                   
                                                                               

B: Financial Instruments                                                       
                                                                               
Resulting situation after the triggering transaction                           

Type of          Expiration      Exercise/      No. of voting    Percentage of 
financial           date        conversion    rights that may be voting rights 
instrument                      period/date    acquired (if the                
                                                 instrument e                  
                                                  xercised/                    
                                                  converted)                   
                                                                               
N/A                                                                            
                                                                               

Total (A+B)                                                                    

Number of voting rights                 Percentage of voting rights            
                                                                               
129464025                               9.93                                   

9. Chain of controlled undertakings through which the voting rights and /or the
financial instruments are effectively held, if applicable:                     
                                                                               
In the narrative below, the figures [ ] indicate the amount of voting righas   
and the percentage held by each controlled undertaking where relevant.         
                                                                               
Baillie Gifford & Co, a discretionery investment manager, is the parent        
undertaking of an investment management group.                                 
                                                                               
Its wholly-owned direct subsidiary undertaking Baillie Gifford Overseas Limited
[4668678; 0.4%] is also a discretionary investment manager.                    
                                                                               
Its wholly-owned direct subsidiary undertaking Baillie Gifford Life Limited    
[25521485; 2.0%] is a life assurance company which procures discretionary      
investment management services from Baillie Gifford & Co in respect of its own 
account shareholdings.                                                         
                                                                               
Its wholly-owned indirect (via Baillie Gifford Life Limited) subsidiary        
undertaking Baillie Gifford & Co Limited [3438758; 0.3%] is an OEIC Authorised 
Corporate Director and Unit Trust Manager which has delegated its discretionary
investment management role to Baillie Gifford & Co.                            

Proxy Voting:                                                                  
                                                                               
10. Name of proxy holder:           N/A                                        
                                                                               
11. Number of voting rights proxy                                              
holder will cease to hold:                                                     
                                                                               
12. Date on which proxy holder will                                            
cease to hold voting rights:                                                   

13. Additional information:                                                    
                                                                               
14 Contact name:                    Myra McIntrye                              
                                                                               
                                    Scott Russell                              
                                                                               
15. Contact telephone name:         0131 275 2154                              
                                                                               
                                    0131 275 2106                              

For notes on how to complete form TR-1 please see the FSA website.

Note: Annex should only be submitted to the FSA not the issuer

Annex: Notification of major interests in shares                               

A: Identity of the persons or legal entity subject to the notification         
obligation                                                                     

Full name                                                                      
(including legal form of legal                                                 
entities)                                                                      
                                                                               
Contact address                                                                
(registered office for legal                                                   
entities)                                                                      
                                                                               
Phone number & email                                                           
                                                                               
Other useful information                                                       
(at least legal representative                                                 
for legal persons)                                                             

B: Identity of the notifier, if applicable                                     

Full name                                                                      
                                                                               
Contact address                                                                
                                                                               
Phone number & email                                                           
                                                                               
Other useful information                                                       
                                                                               
(e.g. functional relationship                                                  
with the                                                                       
person or legal entity subject                                                 
to the                                                                         
notification obligation)                                                       

C: Additional information