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Day Software Reports Revenue Growth of 47%

Day Software also announced today that it has entered into a definitive agreement with Adobe Systems

Day Software Holding AG, a provider of open, standard-based content infrastructure and content management software, on Wednesday announced record revenue growth and strong operating results for the first half of 2010. In a separate announcement, Day Software also announced today that it has entered into a definitive agreement with Adobe Systems (NASDAQ: ADBE) for Adobe to launch a public tender offer to acquire all of the publicly held registered shares of Day Software for CHF139 per share in cash in a transaction valued at approximately CHF255 million on a fully diluted equity-value basis. More details regarding the transaction are available in the joint press release issued by Adobe and Day Software earlier today, which can be found at http://www.adobe.com/aboutadobe/invrelations.

Day reported total revenues of CHF 25.1M, an increase of 47% from total revenue of CHF 17.0M for the first half of 2009. License revenue accounted for 49% of total revenue at CHF 12.4M, an increase of 71% from total license revenue of CHF 7.2M for the first half of 2009. Strong customer renewals drove CHF 7.1M in support and maintenance revenue, or 28% of total revenue, with services revenue totaling CHF 5.5M for the period. Day also reported net income of CHF 3.7M for a total profit margin of 15%. Total cash at the close of the first half of 2010 was CHF 27.2M, a 49% increase over 1H 2009.

"The first half of 2010 saw continued acceleration of Day's momentum," said Erik Hansen, CEO, Day Software. "In Q2 alone, we saw a record number of 23 new customers adopt our CQ5 content management platform as organizations around the globe place an investment priority on driving business through the online and mobile channels and migrate away from legacy, Web 1.0 content management systems. I'm also pleased by the continued expanded investment in CQ5 within our installed base, with twenty customers broadening their deployment of our CQ5 Web Content Management (WCM), Digital Asset Management (DAM), and Social Collaboration (SoCo) offerings."

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