Day Reports Financial Results for Third Quarter for Fiscal Year 2006

Company Continue Profitable Growth Delivering Record Year-To-Date Revenues

Basel, Switzerland – November 14, 2006 – Day Software (SWX: DAYN, OTC:DYIHY), a leading provider of global content management and content infrastructure software, today announced financial results for the Third Quarter of 2006.

Highlights

* 17% YTD total revenue increase compared to same period of 2005
* 43% YTD increase in Income from Operations compared to same period of 2005
* New major customers added in the third quarter of 2006 include Kodak and Merck. Expanded relationships with existing customers included Singapore’s Ministry of Defense, Qinetiq and Volkswagen
* Successful launch of Company’s latest versions of Communiqué and Content Repository Extreme – CRX


Total Revenues for the nine-month period ended September 30, 2006 increased by 17% over last year, totaling CHF 14.03 million, compared to CHF 12.02 million for the nine months ended September 30, 2005. License revenue for the nine months ended September 30, 2006 were CHF 5.08 million, compared to CHF 5.41 million for the nine months ended September 30, 2005. Income from Operations for the nine months ended September 30 2006 was CHF 1.07 million, compared to TCHF 745 for the nine months ended September 30, 2005. Net income for the nine months ended September 30, 2006 was TCHF 850, compared to a net income of TCHF 928 for the nine months ended September 30, 2005.
“Thus far 2006 has been a very successful year for Day Software: With the continuation of our profitable growth in Q3 we have delivered record revenues for the first nine months. Based on our innovative product portfolio we added new major blue chip customers such as Merck and Kodak and expanded our channel business,” said Michael Moppert, CEO and Chairman of Day. “We also made significant investments in the company. We have increased staff and have invested in R&D, customer support and OEM channel support. We believe that these investments in our business will enable us to continue our growth and deliver a strong 2006.”
Total revenues for the third quarter increased by 5.4% over last year, totaling CHF 4.48 million, compared with revenues of CHF 4.25 million for the third quarter of 2005. License revenues totaled CHF 1.64 million, compared with license revenues of CHF 2.07 million for the same period last year. The company delivered gross profits of CHF 3.39 million, compared to CHF 3.45 million for the same period in the previous year. Net income for Q3 of 2006 was TCHF 115 compared to a net income of TCHF 770 in Q3 2005.
On a non-GAAP basis, Day’s net income for the quarter was TCHF 263, versus TCHF 822 for the same quarter of last year. Also on a non-GAAP basis, net income for the nine-month period ended September 30, 2006 increased by 38% over last year, totaling CHF 1.50 million, compared to CHF 1.09 million for the nine months ended September 30, 2005. Non-GAAP results exclude, acquisition-related charges, share-based compensation expense, amortization expense for certain intangible assets, and one-time charges and gains. One-time charges and gains generally relate to business restructuring, investment and fixed asset impairment. The non-GAAP financial measures included are not meant to be considered in isolation from, superior to, or a substitute for results of operations prepared in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies.

Successful product launches, continued technology leadership
In August, Day launched Communiqué 4.1, the latest version of the only native JCR (JSR 170) standard compliant enterprise content management solution available on the market. Initiated by Day, JSR 170 is the Java Content Repository (JCR) standard for the enterprise content management industry. Communiqué 4.1 revolutionizes the enterprise content management market by decoupling a vendor’s content management application from its underlying repository.
Day also launched Content Repository Extreme (CRX) version 1.2, the latest version of Day’s innovative product that enables the storage, management and exchange of content across large-scale enterprises. Day’s CRX provides an open, standards-based infrastructure for integrating business applications with any structured or unstructured content in an enterprise. New features in Day’s CRX enable the exchange of high-value content between applications and underlying repositories.
During the third quarter Day’s CTO, David Nuescheler, led a successful face-to-face meeting of the JSR 283 expert group. JSR 283 is the Content Repository for Java™ Technology API Version 2.0 and represents the next version of JSR 170. The event was hosted by IBM, and included the key expert group members from companies such as IBM, Oracle, Sun and SAP.

About Day (www.day.com)
Day is a leading provider of integrated content, portal and digital asset management software. Day’s technology Communiqué offers a comprehensive, rapidly deployable framework to unify and manage all digital business data, systems, applications and processes through the web. Communiqué’s content-centric architecture, and its innovative ContentBus, turns the entire business into a virtual repository bringing together content from any system, regardless of location, language or platform.

Day is an international company, founded in 1993, and listed on the SWX Swiss Exchange (SWX:DAYN) since April 2000. Day’s customers are some of the largest global corporations and include Audi, DaimlerChrysler, Deutsche Post World Net, Intercontinental Hotels Group, McDonald’s, UBS and Volkswagen.

A warning regarding forward-looking statements
This press-release may contain forward-looking statements regarding future events or the future performance of Day Software Holding AG and its subsidiaries (the “Company”). Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “may,” “will,” and variations of these words or similar expressions are intended to identify forward-looking statements. These statements speak only as of the date hereof. Such information is subject to change, and we will not necessarily inform you of such changes. Actual events or results, of course, could differ materially and adversely from those expressed in any forward-looking statement. We refer you to the “Risk Factors” section of the Company’s Offering Circular, which can be downloaded from the “Investor Relations” section of the Company’s website at www.day.com. The Company’s Offering Circular contains and identifies important factors that could cause actual results to differ materially from those contained in any forward-looking statements. Among the important factors which could cause the Company’s actual results to differ materially and adversely from such forward-looking statements are the intense competition in its industry, its need to stay on the forefront of technological development within its industry, and uncertainty regarding its future capital needs. The Company’s stock is not listed on any United States stock exchange or market, and the Company does not make filings (e.g., Forms 10-K and 10-Q) with the Securities and Exchange Commission under the Securities Exchange Act of 1934.

The complete Financial Results for Third Quarter for Fiscal Year 2006 is on file with the SWX and is available from the Investor Relations section of our web site at www.day.com.
The English text of this press release represents the binding version.

Contact Information

Peter Nachbur

Day Software AG

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