Sage Software Exceeds $1 Billion in 2007 North America Revenue

Sage Group plc Exceeds $2.29 Billion Worldwide

IRVINE, CA--(Marketwire - November 28, 2007) - Sage Software, the North American business of the Sage Group plc (LSE: SGE), announced today that total revenue for the fiscal year ended September 30, 2007 was $1.01 billion, and EBITA (earnings before interest, tax and amortization, which excludes the effects of amortization of acquired intangible assets and the net amortization or capitalization of software development expenditure) was $198.1 million, increases of 54%* and 28%*, respectively, over the same prior year period. UK-based The Sage Group plc reported global revenues of $2.29 billion for the year ended September 30, 2007, an increase of 30%* over the same prior year period (at constant exchange rates*). EBITA for the year was $561.2 million, an increase of 19%* over the prior year, and the company added 319,000 customers during the year, bringing its total to 5.5 million businesses worldwide, excluding ACT! customers.

"Our business in North America continues to be strong with a solid divisional structure that is focused on meeting the needs of our customer segments," said Sage Group CEO Paul Walker. "We are evolving the organization to drive this customer-connected approach even more strongly for the year ahead."

During 2007, North American revenues represented 44% of the Sage Group's global revenues. Overall North American EBITA margins decreased to 20% from 24% due to the dilutive effects of prior year acquisitions, primarily Emdeon Practice Services (now Sage Healthcare Division). Excluding this dilutive effect, North American EBITA margin was maintained at 23%.

In 2007, Sage Software continued its strategy of offering small and mid-sized businesses the broadest range of business management applications, releasing dozens of new or upgraded products for general business and the specialized needs of the construction, distribution, healthcare, manufacturing, nonprofit and real estate industries.

In addition, the company established a new, four-division structure in May 2007 to better address its customers by aligning business units more closely to its customer segments. The company's new Business Management Division brings its accounting, ERP, CRM, and related businesses into a single organization to serve the needs of small and mid-sized businesses (SMBs) with core business management solutions. The new Industry & Specialized Solutions Division provides industry-specific solutions for businesses and organizations in the construction, real estate, and nonprofit industries, as well as serving businesses of all types with human resource management systems, online payroll services and other employee-management solutions. The two new divisions joined the company's existing Healthcare Division, which serves healthcare practices, and the Payment Solutions Division, which supports merchants' payment processing needs.

Underscoring its commitment to surrounding customers with the tools for long term success, the company also launched its Sage 360° marketing campaign ( In addition, the company's industry-leading business partner programs gained further recognition with Company of the Year honors from industry journal VARBusiness in its Annual Report Card program.

* Results are in USD using an annual average exchange rate of 1.98 USD per GBP.

About Sage Software

Sage Software supports the needs, challenges and dreams of more than 2.8 million small and mid-sized business customers in North America through easy-to-use, scalable and customizable software and services. Our products support accounting, operations, customer relationship management, human resources, time tracking, merchant services and the specialized needs of the construction, distribution, healthcare, manufacturing, nonprofit and real estate industries. Sage Software is a part of The Sage Group plc, a leading global supplier of accounting and business management software solutions and related products and services for small and mid-sized businesses. Formed in 1981, Sage was floated on the London Stock Exchange in 1989 and the Group now has 5.5 million customers and employs over 13,900 people worldwide. For more information, please visit the Web site at or call (866) 308-2378.

© 2007 Sage Software, Inc. All rights reserved. All other brands are trademarks of their respective companies.

Contact Information: Press Contacts: John Schoutsen Vice President, Corporate Communications Sage Software (905) 267-2873 Shana Keith Account Manager Porter Novelli (404) 995-4557