Offer Update

Sopheon PLC 5 December 2001 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN CANADA, AUSTRALIA, THE REPUBLIC OF IRELAND OR JAPAN FOR IMMEDIATE RELEASE 5 December 2001 Merger by way of recommended offer by Sopheon plc ('Sopheon') for Orbital Software Holdings plc ('Orbital') Compulsory acquisition On 15 November 2001, Sopheon and Orbital announced that Sopheon's recommended all share offer for Orbital ('the Offer'), on the terms and subject to the conditions set out or referred to in the Offer Document dated 22 October 2001, was unconditional in all respects. Sopheon has now received valid acceptances of the Offer in respect of more than 90 per cent. of Orbital Shares to which the Offer relates. Accordingly, today, Sopheon has issued to Orbital Shareholders who have not yet accepted the Offer, formal notices under section 429 of the Companies Act 1985 to acquire compulsorily all those Orbital Shares in respect of which valid acceptances have not yet been received. The compulsory acquisition process is expected to be completed on (or shortly after) 16 January 2002 (being the expiry date of six weeks after the date of the statutory notice). The Offer will remain open for acceptance until the compulsory acquisition process has been completed. Orbital has applied for cancellation of the listing of the Orbital Shares on the Official List and cancellation of the trading of Orbital Shares on the London Stock Exchange, such cancellation to take place following the expiry of a notice period of 20 business days commencing on 15 November 2001. It is anticipated that such cancellation will take effect on 13 December 2001. Unless the context otherwise requires, the definitions contained in the Offer Document dated 22 October 2001 apply in this announcement. Enquiries Sopheon plc Tel. +44 (0)1483 883 000 Barry Mence Arif Karimjee Buchanan Communications Tel. +44 (0)20 7466 5000 Steve Liebmann The Sopheon Directors accept responsibility for the information contained in this announcement. To the best of the knowledge and belief of the Sopheon Directors (who have taken all reasonable care to ensure that such is the case), the information contained in this announcement, for which they accept responsibility, is in accordance with the facts and does not omit anything likely to affect the import of such information. This announcement does not constitute an offer or an invitation to acquire or dispose of shares or securities. Additional notice to US holders of Orbital securities: The share offer by Sopheon for Orbital is an offer for the securities of a non-US company. Such offer is subject to disclosure requirements of the United Kingdom, which are different from those of the United States. Financial statements included in the Offer Document have been prepared in accordance with foreign accounting standards that may not be comparable to the financial statements of US companies. It may be difficult for US holders of Orbital Shares to enforce their rights and any claim they may have arising under the US federal securities laws, since the issuer is located in a foreign country, and some or all of its officers and directors may be residents of a foreign country. US holders of Orbital Shares may not be able to sue a foreign company or its officers or directors in a foreign court for violations of the US securities laws. It may be difficult to compel a non-US company and its affiliates to subject themselves to a US court's judgement. The Offer is not made, directly or indirectly, in or into, or by use of the mails or any means or instrumentality (including, without limitation, telex, facsimile transmission, telephone and internet) of interstate or foreign commerce of, or any facilities of a national securities exchange of, Canada, Australia, the Republic of Ireland or Japan and the Offer is not be capable of acceptance by any such use, means, instrumentality or facilities or from within Canada, Australia, the Republic of Ireland or Japan. Accordingly, copies of this announcement are not being, and must not be, mailed or otherwise forwarded, distributed or sent in or into or from Canada, Australia, the Republic of Ireland or Japan and persons (including, without limitation, custodians, nominees and trustees) must not mail or otherwise forward, distribute or send this announcement in or into or from Canada, Australia, the Republic of Ireland or Japan.

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