Company announces record profitability and revenue growth

Day Software Holding AG (SWX:DAYN, OTCQX:DYIHY), a leading provider of global content management software, today announced financial results for the first quarter ending March 31, 2007.

Financial Summary: (numbers reported are year-over-year)

· 24% Revenue Increase
· 48% License Revenue Increase
· 38% Net Income Increase
· 35% Increase in Cash Flow from Operations

The Company reported a record first quarter, achieving a 24% growth in total revenue over the same period in 2006. Revenues for the first quarter totaled CHF 6.4 million, compared with revenues of CHF 5.2 million for the first quarter of 2006. License revenues increased by 48% over last year, totaling CHF 3.1 million, compared with license revenues of CHF 2.1 million for the same period last year. The Company increased its gross profit to CHF 4.8 million compared to CHF 4.1 million for the same period in the previous year. Net income for Q1, 2007 was CHF 1.3 million compared to TCHF 915 in Q1, 2006. Cash flow from operations improved to CHF 2.4M in the current quarter from CHF 1.7M for the same period in the prior year.

”The strong first quarter results will enable us to drive further growth in 2007. We are making investments in all key areas of the company, including sales and marketing, research and development, and customer support,” said Michael Moppert, CEO and chairman of Day. “Three elements are driving this growth: The market for content management solutions is healthy, as every major company today recognizes the need for a solid technology platform to implement a long-term enterprise content strategy. The ongoing market consolidation in our industry continues to reduce the number of competitors. And thirdly, as the leader of the new standard for our industry, Day continues to innovate, demonstrated by our recent development of a new, unique suite of products.”

The Company continues to expand its product portfolio with solutions that include the industry’s first standards-based Digital Asset Management system. Known as CQ DAM, the product will be available in Q2, 2007. Day is also increasing its activity with technology partners to grow its OEM business, and has plans to further expand its own sales force.

Day added several new customers in Q1, 2007, representing a number of key vertical markets. In the telecommunications sector, Day added Vodafone and E-Plus. Vodafone is the largest mobile telecommunications network company in the world, with 198.6 million customers. Vodafone chose Day to expand their Web-based communication channels to support their customers with mobile voice, paging, data and Internet services. E-Plus is one of Germany’s largest mobile phone companies. E-Plus will use Day’s technology to help attract revenue from the fixed network to the mobile network, making the mobile phone a user’s preferred device for making calls.

Other new customers in key verticals include General Motors with Opel in the automotive sector. Opel’s first project using Day’s technology will be the creation of an online platform for pre-owned cars. In the financial services industry, Day added Zurich Cantonalbank, Switzerland’s third largest bank.

Also in the first quarter, Day expanded its presence in the public sector with Thales Group in Germany. Thales is a leading international electronics and systems group, serving defense, aerospace and security markets worldwide. Thales represents a new CRX (Content Repository Extreme) enterprise account for Day.

In the US, AARP is redeploying all of their Web channels leveraging Day’s Communiqué. The non-profit, non-partisan membership organization assisting people 50+ years of age chose Day for the exceptional flexibility and multi-language capabilities of its solutions.

Several of Day’s existing customers made additional investments in its technology including, Swiss Post, Sauter AG, Kyocera and Voestalpine.

The Company continued to generate channel revenues in the first quarter of 2007 from agreements with industry leaders such as IBM/FileNet, FAST and Oracle, among others. Day’s OEM agreement with FileNet provides Web Content Management capabilities for the FileNet P8 platform, enabling FileNet’s customers to leverage the power of Java Content Repository (JCR)-standard technology and new Web-centric innovations within the FileNet P8 platform. Day’s agreement with Oracle delivers a JCR-compliant (JSR 170) connectivity to legacy repositories, providing standardized access. With FAST, Day provides both connectivity and JSR 170 enablement for FAST’s enterprise search products.

Also in the first quarter the Company released a series of standards-based connectors that enable customers to leverage enterprise content that resides in legacy repositories from EMC/Documentum, Interwoven, Lotus, MS Sharepoint, Vignette and others. In addition Day awarded “Data Migration” certification to the Quatico Content Importer (QCI) to provide efficient, cost-effective migrations of legacy data from OpenText/Obtree C4 into Day Communiqué. This certification will ensure that former Obtree customers can seamlessly upgrade to Day Communiqué.