Monday 4 February 2008

The Sage Group plc Interim Management Statement

The Sage Group plc ("Sage"), a leading global supplier of business management
software solutions for small and medium-sized enterprises ("SMEs"), is
releasing its first interim management statement on its unaudited results for
the three months to 31 December 2007.

Financial performance update

Trading for the period was consistent with management expectations at the time
of the preliminary results announcement on 28 November 2007.

The performance of our UK business continued to be good. Mainland Europe
experienced good growth across all its markets, although in accordance with
previous management guidance, organic growth moderated somewhat from the very
strong performance in 2006/7. Rest of World again experienced strong organic
revenue growth.

North America, excluding Sage Healthcare, performed in line with management
expectations, with a modest improvement in organic growth. Sage Healthcare
continued to refocus its business, and we expect to see improved revenue growth
in the medium term. The search for a new CEO of our North American business is
progressing well.

Cash flow remains strong, and net debt stood at £505m at the end of December
2007 (December 2006: £586m).

Acquisitions

As previously announced, we made two acquisitions in the period. KCS, which
builds on our existing HR & Payroll product offering in the UK, was acquired
for £20m. We also acquired a majority stake in XRT for £40m and anticipate that
this transaction will complete in May 2008 for a total enterprise value of £
43m. This acquisition compliments our existing capabilities in treasury and
cash management in Europe.

Outlook

Commenting on Sage's performance over the period, Paul Walker said: "We are
pleased to report that trading remained in line with our expectations at the
time of our preliminary results in November, and our experience in the first
quarter gives us confidence that we will meet our organic revenue forecast for
the full year. Whilst we recognise the current uncertainties in the
macro-economic situation, the defensive characteristics of our business model,
including strong cash flows and a high level of recurring revenues through our
support contracts, mean that we are well placed to meet these challenges."


Enquiries:

The Sage Group plc +44 (0)191 294 3068   Tulchan Communications +44 (0)20 7353 4200  
                                  
Paul Walker, Chief Executive             Andrew Grant                            
Paul Harrison, Group Finance Director    Stephen Malthouse                       
Cynthia Alers, Investor Relations                                              
Director                                                                       

Notes to editors:

The Sage Group plc is a leading global supplier of business management software
and services to 5.5 million small to medium-sized enterprises. Formed in 1981,
Sage was floated on the London Stock Exchange in 1989 and now employs over
13,900 people worldwide.

Market consensus of the twelve analyst research notes published after 28
November 2007 for the year to 30 September 2008 is as follows: Revenues £
1,245m, EBITA £299m and PBT (pre-amortisation) £272m.

All financial information is based on unaudited management accounts. Certain
statements made in this interim management statement are forward-looking
statements. Such statements are based on current expectations and are subject
to a number of risks and uncertainties that could cause actual events or
results to differ materially from any expected future events or results
referred to in these forward-looking statements.

www.investors.sage.com