Press Release

• Financial position reflects restructuring success better than earnings
   
• Continued high operating cash flow in abbreviated FY 2011 (9 months)
   
• Significant revenue and earnings decline in abbreviated FY 2011, in line with expectations
   
• Growth and turnaround in FY 2011/12 with optimized existing business and GRC repositioning

Berlin, December 23, 2011 – As part of the adaptation of its business model and the significant effects of its reorientation, Beta Systems Software AG (BSS, ISIN DE0005224406) has concluded its abbreviated 2011 financial year reporting consolidated revenue of € 25.2 million (Q1-Q3/2010 (unaudited): € 31.9 million) and an operating loss of € -6.4 million (Q1-Q3/2010 (unaudited): € -1.6 million). Operating cash flow remains high at € 8.4 million (Q1-Q3/2010 (unaudited): € 6.2 million).

As planned, there was a marked decline in consolidated revenue to € 25.2 million, although it was slightly higher than forecast in August 2011. Software revenue stood at € 6.5 million in the abbreviated 2011 financial year (Q1-Q3/2010 (unaudited): € 11.3 million). This drop reflects the shift in the business model towards recurring and sustainable software and maintenance revenue. Initial successes were seen in maintenance revenue, which stabilized at € 14.8 million in the abbreviated 2011 financial year (Q1-Q3/2010 (unaudited): € 15.7 million) as part of the shift in the business model to greater sustainability. As a consequence, the previous year's sharply declining trend in maintenance revenue was halted by a considerable measure. In the service area, Beta Systems achieved revenue of € 3.7 million in the abbreviated 2011 financial year (Q1-Q3/2010 (unaudited): € 4.9 million), which was due to a weaker order book position, particularly abroad.

Beta Systems has already realized extensive savings with the restructuring that it launched in 2010, although the restructuring did not impact in terms of costs until the second quarter of 2011. Total costs1, in other words, operating expenses, of € 31.9 million in the abbreviated 2011 financial year stood against a comparable total cost position of € 35.6 million (unaudited) in the prior-year nine-month period of 2010.

As a result of the aforementioned revenue and cost trends, the operating result (EBIT) was significantly negative, as forecast, in the abbreviated 2011 financial year, dropping to € -6.4 million (Q1-Q3/2010 (unaudited): € -1.6 million). The net loss for the period amounted to € -7.3 million (Q1-Q3/2010 excluding the earnings effect on the ECM disposal (unaudited): € 1.3 million).

When observing the results of the abbreviated 2011 financial year, the financial position better reflects the restructuring success than the results of operations. Operating cash flow remained very high at € 8.4 million, and amounted to € 11.6 million in the abbreviated 2011 financial year when adjusted for outgoing payments arising from the restructuring. This was due to comparatively high incoming payments from the software business in the first half of 2011, which in turn was attributable to payments received for long-term contracts that had been concluded in the past, and positive effects from improved contract management. Short-term debt was almost fully redeemed as a result of the continued high cash flow level. Accordingly, credit lines that have been granted were fully available as of the balance sheet date.

Outlook for calendar 2011
Up to the end of calendar 2011, and including the fourth calendar quarter (in other words, the first quarter of the 2011/12 financial year), which is stronger in terms of revenue and earnings, the Management Board continues to assume that revenue and earnings will be significantly lower compared with the prior-year period (both the financial and calendar 2010 years). This is because the adaptation of the business model to boost sustainable software and maintenance revenues will not impact the results of operations until the coming quarters and financial years. Accordingly, the Management Board anticipates consolidated revenue of € 13.0 million to € 15.0 million in the last three calendar months of 2011, which corresponds to revenue of € 38.0 million to € 40.0 million for the full 2011 calendar year. This presupposes that maintenance revenue will increasingly stabilize by the end of 2011, but that there will also be a continuing fall in license and service revenues. In terms of earnings, this corresponds to an operating profit of between € 2.0 million and € 4.0 million in the last three calendar months, which will fail to offset the operating loss incurred during the first nine months of 2011, but will nevertheless form a positive starting base for the new 2011/12 financial year.

Outlook for the 2011/12 financial year
From the 2011/12 financial year, the management expects its existing business, with its current product portfolio, to report low revenue growth of two to three percentage points through measures to optimize its sales and service areas. As part of the orientation of new business toward GRC solutions, the management is planning an annual organic doubling of revenue, and consequently significant growth, from a currently low revenue base. This can be further accelerated by intended partnerships or acquisitions. Moderate revenue and earnings growth is anticipated from the total growth rates of the existing and new businesses in the 2011/12 financial year, and as part of the market launch of GRC solutions. The Management Board correspondingly expects revenue of between € 41.0 million and € 43.0 million for the 2011/12 financial year, and a turnaround in operating earnings to a level of € 1.0 million to € 2.0 million.

End of corporate news release

¹ Costs for purchased services, personnel expenses, depreciation and amortization, and other operating expenses.

Issuer's information and comments about this company announcement:

Comments by the Management Board
"The results for the abbreviated 2011 financial year are characterized by the past few months' changes and innovations," commented Jürgen Herbott, CEO of Beta Systems Software AG, before adding: "We are on our way to positioning ourselves as a provider of comprehensive governance, risk and compliance (GRC) solutions, and we have created a good starting base for this with the re-dimensioning that we have implemented over recent months. We have repositioned our business model toward recurrent and sustainable software and maintenance revenues, and we are consistently refraining from high license rebates, maintenance reductions, and early contract renewals."

Gernot Sagl, CFO of Beta Systems Software AG added: "We again achieved high positive cash flows in the abbreviated 2011 financial year, and we are now already almost debt-free and financially independent. We are assuming this trend will continue. Our free liquidity amounts to more than € 16 million. In other words, our financial and liquidity positions currently better reflect our restructuring successes than the results of operations. We still expect a cash inflow of around € 5 million from the ECM disposal, which will also be available to the company for investments in the future."

Further information
The complete 2011 annual report (in German language) was published today at http://www.betasystems.de under the heading Investor Relations/Financial Reports. The Ordinary Annual General Meeting will be held in Berlin on March 6, 2012. Only selected financial information and key performance indicators will be published separately in English language.

All of the amounts referred to in this company announcement (e.g. amounts in € million), and amounts that are derived from them (such as percentages), relate to amounts that have been commercially rounded to full thousands of euros, and which refer to amounts in the consolidated financial statements as of September 30, 2011, as a consequence of which rounding differences may occur. Data relating to the previous year's nine-month period have been taken from the (unaudited) interim report for the third quarter of 2010 as of September 30, 2010, and include the note: (unaudited).

End of the announcement

Beta Systems Software AG
Beta Systems Software AG (General Standard: BSS, ISIN DE0005224406) provides high-quality software products and solutions in the IT security and transparency area, as well as for the automated processing of ultra-large data and document volumes. In its "Data Center Automation & Audit", "Identity & Access Governance" and "Document Processing & Audit" business areas, the company supports customers from the financial services, industrial, retail/wholesale, logistics and IT services areas in the optimization of IT security and the automation of business process, and with an extensive range of products, solutions and consulting in the "GRC – Governance, Risk & Compliance" area for legal and business compliance requirements.

Beta Systems was founded in 1983, has been listed on the stock market since 1997. The Berlin headquartered company employs 290 members of staff. Beta Systems operates both nationally and internationally with 13 Group companies and numerous partner companies. Globally, more than 1,300 customers in over 30 countries are optimizing their processes and improving their security in more than 3,200 operational installations using Beta Systems products and solutions. The company is one of Europe's leading medium-sized, independent software solution providers, and generates around 50% of its revenue abroad.

Further information about the country and its products can be found at www.betasystems.de.

Visit Beta Systems at www.twitter.com/BetaSystems, www.facebook.com/BetaSystems and www.xing.com/companies/betasystemssoftwareag

Press contact
Company contact:
Beta Systems Software AG
Stefanie Frey
Senior Manager Investor Relations
Tel.: +49 (0)30 726 118-171
Fax: +49 (0)30 726 118-800
E-mail: stefanie.frey@betasystems.com

Agency contact:
HBI PR&MarCom GmbH
Alexandra Janetzko
Tel.: +49 (0)89 99 38 87-32
Fax: +49 (0)89 930 24 45
E-mail: alexandra_janetzko@hbi.de