Basel, Switzerland – November 13, 2007

Day Software (SWX: DAYN, OTCQX:DYIHY), a leading provider of global content management and content infrastructure software, today announced financial results for the third quarter of 2007.
 
Highlights

• Total revenue increased 40% to CHF 6.3 million as compared to the third quarter of 2006.
• Gross profit increased 34% to CHF 4.6 million as compared to the third quarter of 2006.
• Net income for the third quarter of 2007 was TCHF 719, up from TCHF 115 in the third quarter of 2006.
• Total revenue for the first nine months of 2007 was CHF 18.3 million, compared to CHF 14 million in the first nine months of 2006.
• Net income for the first nine months 2007 was CHF 5.5 million.
• Launched new, standalone Digital Asset Management application.
• New major customers added in the third quarter of 2007 include Pearson Publishing, Pennwell Publishing and Sigma-Aldrich.

For the third quarter of 2007, Day reported a 40% growth in total revenue over the same period in 2006. Revenues for the third quarter totaled CHF 6.3 million, compared with revenues of CHF 4.5 million for the third quarter of 2006. The company increased its gross profit to CHF 4.6 million compared to CHF 3.4 million for the same period in the previous year. Net income grew to TCHF 719, up from TCHF 115 in the third quarter of 2006, which is an increase of 525%.
 
Total revenues for the nine-month period ended September 30, 2007 increased by 31% over last year, totaling CHF 18.3 million, compared to CHF 14.0 million for the nine months ended September 30, 2006. License revenue for the nine months ended September 30, 2007 were CHF 6.7 million, compared to CHF 5.1 million for the nine months ended September 30, 2006. Pre-tax income for the nine months ended September 30, 2007 was CHF 2.2 million, compared to a pre-tax income of TCHF 859 for the nine months ended September 30, 2006. Net income for the first nine months 2007 was CHF 5.5 million, compared to TCHF 850 for the same period in the prior year. The net income of the first nine months of 2007 includes a tax benefit of CHF 3.3 million.

“In the third quarter of 2007 we have further accelerated our growth, increased our profitability and gained additional market share. The demand for best-of-breed content management solutions continues to be very solid. Our industry initiative to standardize content repository infrastructure has gained strong momentum and is driving demand for our new infrastructure products. We are working closely with channel partners such as IBM and Oracle to make our products available to a larger customer base. With the release of new products such as our Digital Asset Management solution we continue to diversify our product portfolio and add new revenue opportunities for the company,” said Michael Moppert, CEO and Chairman of Day. “Going forward, we expect to continue our path of profitable growth. The healthy development of the company gives us the necessary resources to optimize the support infrastructure for existing customers and further expand our sales and marketing activities to gain additional market share.”

Enterprise Customers. In the third quarter, the company added important new customers, representing various key verticals. The publishing sector continued to be an important market for Day with Pearson and Pennwell added as new customers. With more than 29,000 employees based in 60 countries, Pearson is a leading global media company with businesses in education, business information and consumer publishing. Today, Pearson is focused around three market-leading businesses: Pearson Education, the Financial Times Group and the Penguin Group. With over 100 years of media expertise, Pennwell publishes 75 print and online magazines and newsletters, conducts 60 conferences and exhibitions on six continents, and has an extensive offering of books, maps, websites, research and database services.

Other new customers added in the third quarter of 2007 include Sigma-Aldrich, a leading Life Science and High Technology company. Sigma-Aldrich operates in 35 countries. The company develops and sells biochemical and organic chemical products and kits which are used in scientific and genomic research, biotechnology, pharmaceutical development, the diagnosis of disease and as key components in pharmaceutical and other high technology manufacturing.
 
Other customers expanded the use of Day Software’s solutions, such as Volkswagen AG in Germany or PagesJaunes in France.
 
Channel Customers. The company continued to generate channel revenues in the third quarter of 2007 from agreements with industry leaders such as IBM/FileNet, FAST and Oracle, among others. Day expanded its technology relationship with IBM by joining the IBM ECM ValueNet Partner Program. Day’s Communiqué Web Content Management (CQ WCM) and Communiqué Digital Asset Management (CQ DAM) applications have been integrated with IBM FileNet P8 providing customers worldwide with a single comprehensive solution for managing digital content.

Day’s OEM agreement with IBM/FileNet continues to provide 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 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. These partnerships further validate Day’s leadership in the content applications market, and the emerging market of standardized Java Content Repositories and Web-centric content technologies.

Continued Diversification of Product Portfolio. The company began to leverage its move to a multi-application enterprise software company through its expanded product portfolio. Day’s leadership in the web content management space was recently enhanced with solutions that include the industry’s first standards-based Digital Asset Management system. Known as CQ DAM, Communiqué Digital Asset Management provides centralized management for all digital media files and essential metadata information, all within the context of creative workflows. By providing efficient asset management through a standardized central repository for all departments in the enterprise, CQ DAM extends the value of rich media. The product also leverages Web 2.0 design features such as an AJAX user interface, making ease-of-use a key benefit.

Technology Leadership. Under the leadership of Day’s CTO, David Nuescheler, the version 2.0 of the Content Repository for Java Technology API successfully completed the Public Review process. As the head of this global initiative, Day Software hosts a face-to-face meeting in Basel, Switzerland, for the expert group that jointly develops JSR 283 (successor to JSR 170). Participating companies included BEA, EMC, FileNet, IBM, SUN, Oracle and many others. The next version of the standard will help to further improve the interoperability of content applications and content repositories.

About Day
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.
 
Day is an international company, founded in 1993, and listed on the SWX Swiss Exchange (SWX:DAYN) since April 2000. Day shares are also traded Over the Counter (OTC) in the form of American Depositary Receipts (OTCQX:DYIHY). Day's customers are some of the largest global corporations and include Audi, DaimlerChrysler, Deutsche Post World Net, Deutsche Bank, 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. 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.

For further information

Peter Nachbur
Day Software AG
Barfuesserplatz 6
4001 Basel, Switzerland
T +41 61 226 98 98
peter.nachbur@day.com

Katie Eakins & Wanda Soler
LEWIS PR for Day Software
3131 Camino del Rio N, Suite 200
San Diego, CA 92108
T +1 619 516 2559
day@lewispr.com

The complete Financial Results for Third quarter Year for Fiscal Year 2007 is on file with the SWX and is available from the Investor Relations section of our web site.

The English text of this press release represents the binding version.