Sopheon Named “Company to Watch”

Embargoed Release: 07:00hrs Friday 29th September 2006

                                  Sopheon Plc                                  

                                  (`Sopheon')                                  

         Sopheon Named "Company to Watch" by Managing Automation Magazine         

             Leading Industry Publication Cites Accolade System for             

                      Lowering Product Development Risk

MINNEAPOLIS and LONDON-Sept. 29, 2006-Sopheon, the international software and
services company, announced today that it has been selected by Managing
Automation for the magazine's list of "Companies to Watch" in 2007. The
showcase features ten technology suppliers characterized as "bringing new
dimensions and groundbreaking products to the manufacturing technology arena."
The companies are profiled in Managing Automation's September issue.

Selection to the annual "Companies to Watch" list is based on research by the
Managing Automation editorial staff. "Generally, we look for young companies
that are taking a novel approach to a common manufacturing problem or those
that are addressing a completely new problem," said Managing Automation's
managing editor, Chris Chiappinelli. "With companies across the manufacturing
spectrum again looking to product innovation for growth, Sopheon has stepped in
to answer a pressing need at a crucial time. The ability of Sopheon's Accolade
product to point a company toward the right mix of new products - before that
company spends precious capital on development - makes Sopheon an ideal
selection as one of Managing Automation's 2007 Companies to Watch."

Sopheon's flagship offering, the Accolade product life cycle management (PLM)
system, automates gate- or phase-based product development processes and
provides strategic decision support for innovation decisions. Managing
Automation'sprofile on Sopheon points up the fact that Accolade goes beyond the
scope of most other PLM solutions by helping companies assess the business
value of product ideas. According to the article, "The Accolade system performs
two very important roles: It promises to improve program management around new
product initiatives by injecting real-time visibility into projects in the
pipeline, and it serves up decision-support tools and dashboards to help reduce
the risk of failed product introductions by letting manufacturers zero in on
the right mix of new products prior to kicking off the actual development
process." Sopheon's Accolade has been adopted by industry leaders such as
American Express, BASF, Cadbury Schweppes, Electrolux, Mead Johnson, Nautilus,
Reckitt Benckiser, Timex and Vodafone.

Managing Automation's monthly print edition has a circulation of more than
100,000 readers, comprised of manufacturing company executives,
line-of-business managers and information technology decision-makers. Another
100,000 individuals per month access the publication's content online. The
magazine is popular among corporate technology strategists for its extensive
research and reporting on new ways of applying technology. "Managing Automation
has distinguished itself through a focus on showing companies how they can use
information and automation technology to improve business results and develop
sustainable competitive advantages," said Andy Michuda, chief executive officer
of Sopheon. "It's particularly satisfying to be singled out by this publication
for our success in adapting technology to solve the critical business
challenges associated with product innovation. We appreciate Managing
Automation's recognition of Accolade's value and our progress as a company."

About Managing Automation

Managing Automation is an online and print resource for business and technology
managers in manufacturing. The print publication and website enable
manufacturing management to analyze, select, implement and operate technologies
to enhance their business processes for increased effectiveness and
competitiveness in the market place. Editorial experts provide insight and
analysis on current market conditions, technology products and the competitive
landscape. For more information, please visit www.managingautomation.com.

About Sopheon

Sopheon (LSE: SPE) is an international provider of software and services that
help organizations improve the business impact of product innovation. Sopheon's
Accolade® system automates and governs the innovation process, enabling
companies to increase revenue and profits from new products. 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.

For Further Information:

Barry Mence, Chairman    Sopheon plc                 Tel : + 44 (0) 1483 685   
                                                     735                       
Arif Karimjee, CFO                                                             
                                                                               
Andrew Tan               Hansard Communications      Tel : + 44 (0) 207 245    
                                                     1100                      
                                                                               
                                                     + 44 (0) 7957 203 685     
                                                                               
Frank Jansen             Citigate First Financial    Tel : + 31 (0) 205 754 010