Day Reports Fourth Quarter and Fiscal Year 2005 Financial Results

Company delivers Revenue Growth, improves Financial Performance.
Basel, Switzerland - February 22, 2006 - Day Software Holding AG (SWX: DAYN, OTC:DYIHY), a leading provider of global content management software, today announced financial results for the fiscal year ending December 31, 2005.

Financial Summary 2005:

- 30% increase in total annual revenue
- 77% increase in annual license revenue
- Net income increased to TCHF 741 compared to a net loss of CHF 5.5 million for the prior year

Total revenue for the fiscal year 2005 was CHF 17.0 million, compared with revenues of CHF 13.1 million for the previous year, an increase of 30%. License revenues for the fiscal year 2005 totaled CHF 7.96 million, representing a 77% increase over the prior year. Maintenance revenue for the fiscal year 2005 was CHF 4.75 million compared to CHF 3.8 million the prior year. Services revenue for the fiscal year 2005 were CHF 4.3 million compared to CHF 4.8 million the prior year. Net income for the fiscal year 2005 was TCHF 741 compared to a net loss of CHF 5.5 million for the prior year. Gross profit margin for the 2005 fiscal year increased to 77% from 67% from the prior year.

“We are very pleased to report strong growth, record revenues and profitability for 2005,” said Michael Moppert, CEO and Chairman of Day. “Our core business - enterprise content management solutions - provided a healthy revenue basis for the year. In addition, we successfully released a series of new software infrastructure products, diversifying our offerings and opening up new revenue opportunities for the company. Based on our innovative product portfolio we signed OEM contracts with industry leaders such as BEA and FileNet and we expect additional agreements to follow soon. We started the New Year with a lot of momentum and believe that the combination of our content management business, our new infrastructure products, and the expansion of distribution channels through OEM partnerships will be a solid basis for continued, profitable growth in 2006.”

Next Generation of Flagship Products
In 2005, Day successfully launched Communiqué 4, the first native JCR (JSR 170) standard compliant enterprise content management solution available on the market. Communiqué 4 revolutionizes content management by decoupling the content management application from the underlying repository.

“With it’s support for JSR 170, Communiqué 4 is the first system on the market that brings customers to the next evolutionary stage of content management - giving them a standardized content infrastructure and unlocking their proprietary legacy repositories,” said David Nuescheler, Chief Technology Officer, Day Software. “Companies now have a choice: Communiqué 4 with it’s future-proof support for the industry standard is a very attractive, powerful alternative to the older, proprietary systems of our competitors. We believe that the solid revenue growth in 2005 validates our strategy and our continued technology investments.”

Innovative Product Diversification
Day successfully launched an innovative, new product line Content Repository Extreme CRX. Day CRX provides an open, standards-based infrastructure for integrating business applications with any structured or unstructured content in an enterprise.

“With its support for Java 2 Enterprise Edition (J2EE), in addition to its pioneering support of JSR 170, Day CRX provides a content infrastructure that is ’future-proof’ and sustainable, thus reducing the risk of proprietary vendor lock-in for all of Day’s customers,” said Chris Wood, CTO Data Management Practice at Sun Microsystems.

New Industry Fundamental Standard
In the past four years Day has made substantial investments into the next generation of technology products. Day has positioned the company as the leader of a global industry group that has developed the new standard for enterprise content, JSR 170. This initiative has gained the support of all major industry players such as IBM, Oracle, SUN, HP and BEA. With new products in place Day is now one of the first companies to make this technology commercially available to the industry.

2005 Highlights

- Industry Leadership. Day leveraged its third annual Global Content Management Summit in Lucerne, Switzerland, where executives from leading companies around the world, such as Audi, DaimlerChrylser, General Motors, Deutsche Post WorldNet and CSFB, gathered to share best practices about managing enterprise content on a global scale.
- Technological Leadership. Day continued to head a global expert group that defines the future standards for the content management industry. In the fall of 2005 Day submitted JSR 283, the next version of JSR 170, the groundbreaking Java standard for Content Repositories.
- Product Leadership. Day further demonstrated its industry thought leadership by becoming the first company to ship both an ECM solution and a Java Content Repository based on groundbreaking new standard, JSR 170. Day initiated and has led the development of this innovative standard over the past three years.
- Customer Support. New customers added 2005 include global leaders such as Fiducia, Media General, eMusic, OptionOne Mortgage, Penn State University, Scripps Media, US Department of Interior, Vivendi Universal, Clifford Chance, Credit Suisse First Boston (CSFB), Deutsche Bank, On Command, American Academy of Family Physicians (AAFP) and EMN8. Many existing customers also made additional investments in Day Software, including NOKIA, Zimmer, Johnson Controls and Audi.
- Channel Development. New channel opportunities include BEA and FileNet. Day signed an agreement with BEA to deliver a JSR 170 compliant interface that provides standardized access to companies running BEA WebLogic Portal™. Day will also integrate Day’s CRX as the content repository for BEA WebLogic Portal™. Additionally, Day signed an agreement with FileNet to provide Web Content Management capabilities for the FileNet P8 platform.

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, Credit Suisse First Boston, DaimlerChrysler, Deutsche Bank, Deutsche Post World Net, Intercontinental Hotels Group, McDonald’s 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 “expects,” “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. There is currently no public trading market in the United States for the Company’s stock, 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 English text of this press release represents the binding version.

Contact Information

Peter Nachbur

Day Software AG

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