AGM - Trade Update

Sopheon PLC
25 June 2004


Embargoed Release: 07:00hrs 25th June 2004



                                  SOPHEON PLC

                  AGM: Trading Update, Balance Sheet Improved



At the Annual General Meeting of Sopheon plc ('Sopheon') to be held later today,
the board will give shareholders an update on trading, as well as actions being
taken to further strengthen its balance sheet. This will include the following
statement:

'I am pleased to report that Sopheon continues to make significant progress
towards meeting its operational objectives.  Fourteen transactions were closed
in the first quarter, comprising 7 proof-of-concept and consulting assignments,
4 new license sales and 3 extension orders to existing implementations.  There
have been further successes in all categories in the second quarter. Taking
revenue to date, recurring revenue streams, and new orders including contracts
conditional on acceptance decisions, visibility of 2004 revenues now exceeds 90%
of the total revenues recorded in 2003 for the continuing software business. We
are actively pursuing signature on several additional contracts for closure by
the end of June.  Coming up to the mid-year point, this has already been a year
of substantial strategic development, including our advancement to the top tier
of Microsoft's partner network through qualification for 'Gold' status,
initiation of an application hosting service for Accolade customers, and winning
our first customer in the financial services sector.  Overall, we continue to
see high rates of adoption of Accolade within our installed base, where our
largest single client implementation is operating with 1500 seats.  In addition,
we have signed our first contracts extending the use of Accolade to automate and
improve business processes beyond the product development area.  Further details
of our first-half performance will be provided in our 2004 interim statement,
expected to be issued around the end of August.

As indicated in our Annual Report, the board has been considering a range of
options to propose to the holders of the Company's £2.5m convertible loan stock
in the event that some or all of it remains unconverted at the time of maturity
in June 2005. Accordingly, proposals are being put to the holders of the of the
loan stock that would defer maturity until December 2005, reconstitute the
instrument such that it will automatically convert into equity rather than be
repayable upon maturity, and eliminate the 6% annual interest coupon. These
modifications would also result in the instrument being classified as equity
rather than debt in the Company's balance sheet. We are pleased to report that
we have received agreement from holders of a majority of the convertible loan
stock to these proposals. The terms being put to the loan stock holders also
include an up-front 7% payment to compensate for the loss of interest and
repayment rights. Partly to offset this cost, but also to underline the renewed
strength of Sopheon's balance sheet going forward, the Company has today placed
a total of 4,651,163 ordinary shares at 21.5p per share to raise £1,000,000
before expenses of working capital for the Company.  Application has been made
for the new ordinary shares to be admitted to trading on AIM and dealings are
expected to commence on 30 June 2004.

The combined effect of this placing and the reclassification of the loan note is
expected to improve Sopheon's balance sheet position by over £3m. With this,
combined with evidence of an improving outlook for revenues, the mood in the
business is increasingly confident as we move further towards our objective of
becoming a leading international supplier of software and services that improve
the financial return on innovation and product development investments.'

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

Barbara Jansen            Citigate First Financial   Tel : + 31 (0) 205 754 010


About Sopheon

Sopheon (LSE: SPE) is an international provider of software and services.  The
Sopheon Accolade product development system automates gate- or phase-based
product development processes and provides strategic decision support that
allows companies to improve innovation, cut product development spending waste
and shorten time-to-market.  Sopheon's Monitor software operates as a 'reading
robot' that automatically reviews, filters, analyzes and pushes relevant content
to healthcare and engineering professionals to enable effective compliance with
protocols, standards and regulations. 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


                      This information is provided by RNS
            The company news service from the London Stock Exchange                   AE