Irvine , CA - Dec 03, 2008 - Sage North America, part of the Sage Group plc (LSE: SGE), announced today that its total revenue for the fiscal year ended September 30, 2008 was $986.8 million, and EBITA* was $172.7 million, decreases of 3%** and 14%**, respectively, over the same prior year period. Overall North American EBITA margins were 18%, down from 20% in 2007 as the company increased investments in its support operations.

UK-based The Sage Group plc reported global revenues of $2.55 billion for the year ended September 30, 2008, and EBITA of $590.2 million, increases of 7%** and 1%** over the same prior year period (at constant exchange rates**). The company added 341,000 customers during the year, bringing its total to 5.8 million businesses worldwide, excluding ACT! customers.

“In the challenging economic climate in North America, small and midsized businesses continue to look to software and services to help improve efficiency and productivity. Our wide product portfolio and large base of 2.9 million customers have enabled us to attain nearly $1 billion in revenue by delivering innovative products and improved service,” said Sage North America President and CEO, Sue Swenson.

To reduce costs and increase the efficiency of the business, Sage North America also announced it is reducing staff by approximately 150. The reduction affects roles across the company outside the Healthcare division, which had a workforce reduction earlier this year.

In 2008, Sage North America focused on improving customer service, operational efficiency, and delivering innovative products for its small and midsize business customers.

The company launched several initiatives to better connect with customers, including increased support operations staffing as well as launching online community sites for its Accountants Network, ACT! by Sage, Peachtree by Sage and Sage Accpac ERP customers. The community sites provide resources to help businesses interact with each other and with Sage representatives, helping to improve customers’ experience and knowledge and assisting Sage in the design of improved products.

The company delivered more than 40 new or upgraded products for general business and the specialized needs of the construction, distribution, healthcare, manufacturing, nonprofit and real estate industries. Among the product launches were the new Sage MAS and Sage Accpac Extended Enterprise Suites that provide highly integrated front and back office functions in a single package.

The company also made several key organizational changes, including a reorganization of its Healthcare division in July, and the hiring of new CEO Sue Swenson in March, CFO Marc Loupé in June, and Healthcare Division COO Lindy Benton in September. The company completed its executive management team in November when Greg Hammermaster joined as President of its Payment Solutions Division.

The company is currently launching new branding in concert with its affiliate companies worldwide, reinforcing Sage’s position as a global leader in providing business management applications for small and mid-sized businesses.

* Earnings before interest, tax and amortization, which excludes the effects of amortization of acquired intangible assets and the net amortization or capitalization of software development expenditure.  
**Results are in USD using an annual average exchange rate of 1.97 USD per GBP.

About Sage North America
Sage North America is part of The Sage Group plc, a leading global supplier of business management software and services. At Sage, we live and breathe business every day. We are passionate about helping our customers achieve their ambitions. Our range of business software and services is continually evolving as we innovate to answer our customers’ needs. Our solutions support accounting, operations, customer relationship management, human resources, time tracking, merchant services and the specialized needs of the construction, distribution, healthcare, manufacturing, nonprofit and real estate industries. Sage North America employs approximately 4,800 people and supports 2.9 million small and medium-size business customers. The Sage Group plc, formed in 1981, was floated on the London Stock Exchange in 1989 and now employs more than 14,500 people and supports more than 5.8 million customers worldwide. For more information, please visit the web site at www.sagenorthamerica.com or call 866-308-2378.

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About Sage North America

Sage North America is part of The Sage Group plc, a leading global supplier of business management software and services. At Sage, we live and breathe business every day. We are passionate about helping our customers achieve their ambitions. Our range of business software and services is continually evolving as we innovate to answer our customers’ needs. Our solutions support accounting, operations, customer relationship management, human resources, time tracking, merchant services and the specialized needs of the construction, distribution, healthcare, manufacturing, nonprofit and real estate industries. Sage North America employs approximately 5,000 people and supports nearly 2.9 million small and medium-size business customers. The Sage Group plc, formed in 1981, was floated on the London Stock Exchange in 1989 and now employs 14,800 people and supports 5.7 million customers worldwide. For more information, please visit the web site at www.sagenorthamerica.com or call 866-308-2378.

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