Merger Rationalisation

Sopheon PLC 30 November 2001 FOR IMMEDIATE RELEASE 30 November 2001 SOPHEON PLC RATIONALISATION FOLLOWING MERGER WITH ORBITAL SOFTWARE Sopheon plc ('Sopheon), the international knowledge management software and services company, announced today that it is implementing its plans for rationalising the enlarged group following its merger with Orbital Software Holdings plc ('Orbital') being declared unconditional in all respects. Outline details of proposed cost reductions were set out in the offer document for the recommended merger. Following a detailed review of the enlarged business, Sopheon is reducing the number of employees by a total of just over 80, of which approximately 30 were implemented in October and the rest today. The reductions, which include 6 individuals who will have transition roles through early 2002, will affect both the Sopheon and Orbital businesses. Once transition has concluded, the number employed within the existing Sopheon is expected to reduce by approximately 50 and the number employed within Orbital is expected to reduce by approximately 30. The one-off costs associated with this rationalisation are currently estimated to be no more than £0.9 million, and will be provided for within the results for the year to 31 December 2001. Sopheon's Chairman, Barry Mence said: 'We are following through quickly on the promised cost reduction programme and have received the full cooperation of Orbital's management. While it is with regret that we are saying goodbye to former colleagues and friends, we will start our new 2002 financial year with a sharply reduced combined cost base. 'As originally planned, the Edinburgh establishment becomes Sopheon's product and service development centre within Europe.' About Sopheon Sopheon (LSE:SPE) is a leading international provider of software-based solutions that enable organizations to more efficiently access internal and external information and turn it into the knowledge to compete. Sopheon serves nearly half of the technology-driven companies on the Fortune 500, providing industry and process-specific software applications that are pre-loaded with specialized content and access to human expertise. They include the Web-enabled Accolade product development system and the award-winning Teltech.com Web-based research portal for technical and business professionals. Sopheon's European headquarters are in Guildford U.K., and its U.S. headquarters are in Minneapolis. The company also has operating bases in Germany and the Netherlands. Sopheon has recently declared its Offer for Orbital Software Holdings plc unconditional in all respects. Sopheon's shares are listed on the Alternative Investment Market of the London Stock Exchange and on Euronext in the Netherlands. For more information, please visit www.sopheon.com. For further information contact : Barry Mence, Chairman Sopheon plc Tel : + 44 (0) 1483-883000 Arif Karimjee, CFO Sopheon plc Tel : + 44 (0) 1483-883000 Steve Liebmann Buchanan Communications Tel : + 44 (0) 20-7466-5000 Barbara Jansen Citigate First Financial Tel : + 31 (0) 205-754-080

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