Group Press Releases

As required by International Accounting Standards, Sage will report its consolidated financial statements under International Financial Reporting Standards (IFRS), for all accounting periods beginning on or after 1 October 2005. Previously the Group has applied UK Generally Accepted Accounting Principles (UK GAAP). The first financial results under IFRS will be the 2006 interim results, for the period ended 31 March 2006, to be released on 10 May 2006.

Sage’s results for the year ended 30 September 2005 were originally reported under UK GAAP in December 2005. As indicated at that time, Sage today reports a restatement (unaudited), under IFRS, of its 2005 financial results. Results for the first half of 2005 are also included in the restatement.

The purpose of this restatement is to assist in understanding of Sage’s future IFRS financial results and comparison with prior periods. Sage has already provided an illustration of IFRS impacts by presenting a restatement of its 2004 financial results. The impact of the restatement on the 2005 results is broadly similar to the impact on the 2004 results. The fundamentals of Sage’s revenues, profits, cash flows and balance sheet are unaffected.

Restatements are shown for:

(i) Income Statement (previously referred to under UK GAAP as the Profit and Loss Account)

(ii) Balance Sheet

(iii) Cash Flow Statement - this restatement affects only the presentation of results

(iv) Geographical segmentation of revenue and operating profit

Also released today are the Group’s current accounting policies, which have been revised to comply with current application of IFRS.

The full restatements and Sage’s new accounting policies are available on http://www.sage.com/investors/ifrs.pdf

All future financial results will be reported under IFRS.

Enquiries:

The Sage Group plc +44 (0) 191 294 3068

Paul Harrison, Finance Director

Phil Branston, Investor Relations

Tulchan Communications +44 (0) 20 7353 4200

Julie Foster

Kirstie Hamilton