InVision AG

Interim / Quarterly Report • Nov 30, 2009

Interim Financial Report as of September 30, 2009 InVision Software AG

Overview

InVision Software at a glance

In 1995 InVision Software was formed with a mission to provide every company with the best possible solution to its workforce management issues. InVision has never lost sight of this goal and has since become one of the global leaders in workforce management solutions and frequently sets technological trends in this field.

By using the InVision Software Group's products, the Group's international customers are able to optimise their staff deployment and increase productivity. At the same time, they can reduce planning and administrative costs and significantly improve employee motivation. Thus, investments made in workforce management solutions as a rule can be amortised within a few months, thereby yielding an impressive return on investment.

Financial Summary

Group Figures as of September 30, 2009, according to IFRS (unaudited)

in Euro	1 Jan. - 30 Sept. 2009	1 Jan. - 30 Sept. 2008
Revenue	9,159,100.28	8,654,487.64
Licenses	3,530,568.67	2,638,947.50
Maintenance	3,272,985.05	2,547,138.21
Services	2,355,546.56	3,468,401.93
EBIT	-4,185,256.25	-5,995,820.38
as percentage of revenue	-46%	-69%
Result after tax	-3,104,323.39	-3,779,182.46
as percentage of revenue	-34%	-44%
Earnings per share1	-1.39	-1.69
in Euro	as of 30 Sept. 2009	as of 31 Dec. 2008
Total assets	17,608,946.56	21,401,757.30
Liquid funds	6,388,586.18	12,211,242.54
Equity	12,768,312.97	15,691,423.77
as percentage of total assets	73%	73%
Employees	as of 30 Sept. 2009	as of 31 Dec. 2008
Total	213	241
thereof in Germany	89	103
Information on shares	1 Jan. - 30 Sept. 2009	1 Jan. - 30 Sept. 2008
Closing price2 as of 30 September, in Euro	8.60	10.00
High2 , in Euro	9.05	25.02
Low2 , in Euro	3.19	9.85
Market capitalisation as of 30 September, in Euro	19.22 million	22.35 million
Number of shares as of 30 September	2,235,000	2,235,000

1 Based on 2,235,000 shares 2 XETRA price

Contents

Overview	2
Contents	4
Group Management Report	6
Balance Sheet	8
Income Statement	10
Cash Flow Statement	11
Statement of Equity	12
Notes	13
Financial Calendar	16

Group Management Report

Group Management Report to the Interim Financial Report as of September 30, 2009, according to IFRS (unaudited)

Specific events during the reporting period

As from January 2, 2009, InVision Software AG took over a stake of 51 percent in the operational business of the US consulting company Core Practice LLC, Lisle, Illinois, via its subsidiary InVision Consulting International GmbH, Baar. With this acquisition, the Company pursues the strengthening of its presence on the North American market as well as the enforcement of its international consulting business.

On January 12, 2009, InVision Holding GmbH, Ratingen, purchased 246,192 shares of InVision Software AG and thereby is the largest single shareholder of the Company.

In the first nine months of the year 2009, the software solution InVision Enterprise WFM received four industry awards: The American trade publication "Customer Inter@ction Solutions" honoured the InVision solution as "Product of the Year 2008" and presented InVision Software with the "CRM Excellence Award". In the course of its competition "Top-Produkt Handel 2009", the German business magazine for retail "handelsjournal" awarded InVision with the bronze medal within the category "Process Optimisation". For the second year in a row, the analyst firm Frost&Sullivan honoured InVision Software for its Competitive Strategy Leadership in Agent Performance Optimisation in the EMEA region.

Results of operation

In the first nine months of 2009, Group revenues totaled TEUR 9,159 (previous year: TEUR 8,655) and were therefore 6 percent higher than in the previous year. This rise was primarily

the result of a 34 percent increase of licence revenues up to TEUR 3,531 (previous year: TEUR 2,639) as well as a 28 percent increase of maintenance revenues up to TEUR 3,273 (previous year: TEUR 2,547). Service revenues decreased by 32 percent down to TEUR 2,355 (previous year: TEUR 3,469).

Revenues in the "Germany, Austria and Switzerland" region increased during the reporting period by 7 percent to TEUR 3,907 (previous year: TEUR 3,655). This region therefore makes up 43 percent of revenues (previous year: 42 percent). Revenues generated in other foreign countries totaled TEUR 5,252 (previous year: TEUR 5,000), thereby representing an increase of 5 percent. Revenues generated in other foreign countries as a percentage of total revenue thus constitute 57 percent (previous year: 58 percent).

During the reporting period, the operating result (EBIT) was TEUR -4,185 (previous year: TEUR -5,996). The EBIT margin was -46 percent during the reporting period (previous year: -69 percent).

For the first nine months of 2009, the Group result was TEUR -3,104 (previous year: TEUR -3,779), while earnings per share came to EUR -1.39 (previous year: EUR -1.69), in each case based on 2,235,000 shares.

Financial condition

During the reporting period, the liquid funds and securities were down to TEUR 6,389 (as of December 31, 2008: TEUR 12,211), primarily because of the negative cash flow generated from operating activity. As of end of September 2009, financial liabilities were TEUR 178 (as of December 31, 2008: TEUR 211).

The balance sheet total equalled TEUR 17,609 (as of December 31, 2008: TEUR 21,402). The equity capital is now TEUR 12,768 (as of December 31, 2008: TEUR 15,691), and the equity capital ratio is now 73 percent (as of December 31, 2008: 73 percent). The equity capital therefore provides a solid basis for the continued growth of the Company.

The cash flow from operating activity reached TEUR -5,600 (previous year: TEUR -3,685) during the reporting period.

Research and development

For InVision, the continued improvement of its software and its development of new components in order to meet market needs are key competitive factors. Accordingly, the InVision Group attaches great importance to research and development.

Not surprisingly, therefore, InVision is constantly investing in the development of its product lines for its enterprise-wide workforce management solution, InVision Enterprise WFM.

In the first nine months of 2009, most of the activity was focused on the final development work for Release 4.7 of InVision Enterprise WFM, which is shipped since July of 2009. The Release 4.7 includes more than 100 new product features with numerous detail improvements.

Employees

On September 30, 2009, the InVision Group employed 213 workers worldwide, thereof 32 in sales, 90 in research & development, and 66 in Professional Services. Thus, the number of employees has declined by 11.6 percent in the last nine months (December 31, 2008: 241 employees). 89 employees worked in Germany and 124 employees worked outside Germany.

Risks and opportunities

Risks for the business development of InVision Group are described in the Group Management Report for Fiscal Year 2008. The corresponding opportunities are described in the Outlook section of this management report and in the Group Management Report for Fiscal Year 2008.

Outlook

InVision's plans for 2009 remain unchanged and the Company expects a significant increase in revenues as well as an EBIT of app. EUR -2.2 million for the fiscal year 2009.

Balance Sheet

Interim Balance Sheet as of September 30, 2009, according to IFRS (unaudited)

Assets (EUR)	as of 30 Sept. 2009	as of 31 Dec. 2008
Short-term assets
Liquid funds	450,716.44	11,071,314.94
Securities	5,937,869.74	1,139,927.60
Trade receivables	5,220,292.71	4,879,669.04
Income tax claims	283,721.42	120,310.77
Prepaid expenses and other short-term assets	612,558.30	610,327.31
Total short-term assets	12,505,158.61	17,821,549.66
Long-term assets
Intangible assets	126,239.51	66,982.25
Tangible assets	388,508.49	433,241.98
Deferred tax assets	4,550,040.53	3,017,925.70
Other long-term assets	38,999.42	62,057.71
Total long-term assets	5,103,787.95	3,580,207.64
Total assets	17,608,946.56	21,401,757.30

Equity and liabilities (EUR)	as of 30 Sept. 2009	as of 31 Dec. 2008
Short-term liabilities
Short-term liabilities owed to financial institutions	178,205.53	210,968.11
Trade payables	750,310.51	795,029.48
Provisions	1,096,153.26	1,657,019.78
Income tax provisions	180,605.63	1,300,349.15
Short-term share in deferred income and other short-term liabilities	2,140,378.66	1,518,827.01
Total short-term liabilities	4,345,653.59	5,482,193.53
Long-term liabilities
Deferred taxes	494,980.00	228,140.00
Total long-term liabilities	494,980.00	228,140.00
Equity
Subscribed capital	2,235,000.00	2,235,000.00
Capital reserves	20,616,179.21	20,616,179.21
Earnings reserves	1,414,177.33	1,414,177.33
Equity capital difference from currency translation	-548,481.68	-763,509.30
Profit/Losses carried forward	-7,813,115.26	29,382.54
Group result	-3,104,323.39	-7,842,497.80
Minority shares	-31,123.24	2,691.79
Total equity	12,768,312.97	15,691,423.77
Total equity and liabilities	17,608,946.56	21,401,757.30

Income Statement

Income Statement as of September 30, 2009, according to IFRS (unaudited)

in Euro	1 Jan. - 30 Sept. 2009	1 Jan. - 30 Sept. 2008
Revenues	9,159,100.28	8,654,487.64
Other operating income	388,991.36	70,458.20
Costs of materials/costs of goods and services purchased	-118,345.53	-338,392.98
Personnel costs	-9,411,451.53	-8,882,342.65
Amortisation/depreciation of intangible and tangible assets	-140,894.07	-121,468.77
Other operational expenditures	-4,062,656.76	-5,378,561.82
Operating result (EBIT)	-4,185,256.25	-5,995,820.38
Financial result interest income/ expenses	26,585.62	409,825.97
Currency losses/ gains	-299,136.30	-138,349.34
Results before taxes (EBT) and
minority shares	-4,457,806.93	-5,724,343.75
Income tax	1,316,316.71	1,945,161.29
Consolidated net profit/ loss	-3,141,490.22	-3,779,182.46
Minority shares	37,166.83	0.00
Net profit/ Group result	-3,104,323.39	-3,779,182.46

Cash Flow Statement

Cash Flow Statement as of September 30, 2009, according to IFRS (unaudited)

Cash flow from operating activity (EUR)	1 Jan. - 30 Sept. 2009	1 Jan. - 30 Sept. 2008
Group result	-3,104,323.39	-3,779,182.46
Depreciation and amortisation of assets	140,894.07	121,468.77
De-/Increase in provisions	-560,866.52	-41,152.04
De-/Increase in income tax liabilities	-1,119,743.52	547,800.22
De-/Increase in deferred taxes	-1,265,274.83	-2,587,911.00
Other payment-ineffective costs/earnings	215,458.12	-279,397.79
De-/Increase in trade receivables	-340,623.67	1,839,602.65
De-/Increase in other assets and prepaid expenses	20,827.30	-63,747.95
De-/Increase in income tax claims	-163,410.65	6,083.94
De-/Increase in trade payables	-44,718.97	442,887.44
De-/Increase in other liabilities and deferred income	621,551.65	108,477.86
Cash flow from operating activity	-5,600,230.41	-3,685,070.36
Cash flow from investing activity (EUR)
Payments made for investments in tangible assets	-87,945.81	-320,968.88
Payments made for investments in intangible assets	-91,408.12	-152,473.06
Payments made for purchasing securities (funds)	5,407,926.96	-3,027,608.39
Income from the distribution of securities	-10,216,178.54	4,365,000.00
Cash flow from investing activity	-4,987,605.51	863,949.67
Cash flow from financing activity (EUR)	0.00	0.00
Change in cash and cash equivalents	-10,587,835.92	-2,821,120.69
Cash and cash equivalents at the beginning of the period	10,860,346.83	3,567,257.31
Cash and cash equivalents at the end of the period	272,510.91	746,136.62

Statement of Equity

Change of Equity Statement as of September 30, 2009, according to IFRS (unaudited)

			Equity capital of the parent company's shareholders
in Euro	Subscribed capital	Capital reserves	Statutory reserves	Other earnings reserves	Equity capital differences from currency translation	Group result	Equity	Minority shares	Total
December 31, 2007	2,235,000.00	20,616,179.21	78,988.99	1,335,188.34	-200,525.42	29,382.54	24,094,213.66	0.00	24,094,213.66
Period result	0.00	0.00	0.00	0.00	0.00	-7,842,497.80	-7,842,497.80	0.00	-7,842,497.80
Minority shares	0.00	0.00	0.00	0.00	0.00	0.00	0.00	2,691.79	2,691.79
Exchange rate difference from converting foreign financial statements	0.00	0.00	0.00	0.00	-562,983.88	0.00	-562,983.88	0.00	-562,983.88
Total recognised expenses/ income	0.00	0.00	0.00	0.00	-562,983.88	-7,842,497.80	-8,405,481.68	0.00	-8,405,481.68
December 31, 2008	2,235,000.00	20,616,179.21	78,988.99	1,335,188.34	-763,509.30	-7,813,115.26	15,688,731.98	2,691.79	15,691,423.77
Period result	0.00	0.00	0.00	0.00	0.00	-3,141,490.22	-3,141,490.22	0.00	-3,141,490.22
Minority shares	0.00	0.00	0.00	0.00	0.00	0.00	0.00	3,351.80	3,351.80
Minority shares of period result Exchange rate difference	0.00	0.00	0.00	0.00	0.00	37,166.83	37,166.83	-37,166.83	0.00
from converting foreign financial statements	0.00	0.00	0.00	0.00	215,027.62	0.00	215,027.62	0.00	215,027.62
Total recognised expenses/ income	0.00	0.00	0.00	0.00	215,027.62	-3,141,490.22	-2,926,462.60	0.00	-2,926,462.60
September 30, 2009	2,235,000.00	20,616,179.21	78,988.99	1,335,188.34	-548,481.68	-10,917,438.65	12,799,436.21	-31,123.24	12,768.312.97

Notes to the Interim Financial Report as of September 30, 2009, according to IFRS (unaudited)

General Information

The business activities of InVision Software Aktiengesellschaft, Ratingen (hereinafter also referred to as "InVision AG" or "Company"), together with its subsidiaries (hereinafter also referred to as the "InVision Group" or the "Group"), include developing, selling and maintaining software products relating to workforce management and providing services in connection with the sale of the software products. The InVision Group does business primarily in Europe and the United States.

The Company's registered offices are located at Halskestrasse 38, 40880 Ratingen, Germany. It is entered in the Commercial Register of the Municipal Court of Duesseldorf under registration number HRB 44338.

Bases for preparing the financial report

The consolidated interim financial report for the period of January 1, 2009, through September 30, 2009, was prepared in accordance with IAS 34 "Interim Financial Reporting".

The consolidated interim financial report does not contain all explanations and information that are required for the annual financial statements of the fiscal year and should be read in conjunction with the consolidated financial statements for the period ending December 31, 2008.

Changes of the group of consolidated companies

Compared to December 31, 2008, the group of consolidated companies has been expanded as follows:

• InVision Software (Deutschland) GmbH, Ratingen, Germany (100%)
• via InVision Consulting International GmbH, Baar, Switzerland: Core Practice LLC, Chicago, IL, United States (51%)

Equity capital

The development of the Group's equity capital is shown in the statement of changes in equity.

Treasury shares

The Company holds no treasury shares.

Sales revenue

The sales revenue is divided into the following business areas:

in TEUR	1 Jan. - 30 Sept. 2009	1 Jan. - 30 Sept. 2008
Licence revenues	3,531	2,639
Maintenance revenues	3,273	2,547
Service revenues	2,355	3,469
Total	9,159	8,655

The sales revenues are divided among the following sales regions:

in TEUR	1 Jan. - 30 Sept. 2009	1 Jan. - 30 Sept. 2008
Germany, Austria, Switzerland	3,907	3,655
Other foreign countries	5,252	5,000
Total	9,159	8,655

Taxes on income and earnings

Taxes on income and earnings are classified as follows:

in TEUR	1 Jan. - 30 Sept. 2009	1 Jan. - 30 Sept. 2008
Income taxes	33	-643
Deferred taxes	1,283	2,588
Total	1,316	1,945

Executive Board

As of September 30, 2009, the Executive Board of InVision Software AG consists of the following members:

Peter Bollenbeck	Chairman
Matthias Schroer	Member

Supervisory Board

As of September 30, 2009, the Supervisory Board of InVision Software AG consists of the following members:

Dr. Thomas Hermes	Chairman
Dr. Christof Nesemeier	Deputy Chairman

Prof. Dr. Wilhelm Mülder Member

Securities transactions by Company executives and directors

Under § 15 a of the German Securities Trading Act (WpHG), members of the Executive Board, members of the senior management and members of the Supervisory Board of InVision Software AG are obligated to report their trades and transactions involving InVision shares. The reporting obligation applies to all transactions, which exceed a total sum of 5,000.00 Euro in a given calendar year. In the first nine months of 2009, the following transactions were reported to the Company:

Earnings per share

Earnings per share were calculated and reported by dividing the earnings for the period as attributable to the InVision Software AG shareholders by the average weighted number of shares issued and outstanding during the reporting period. InVision Software AG has issued only ordinary shares. In the first nine months of 2009, the assumed number of shares equaled 2,235,000. Earnings per share for this period therefore equaled -1.39 Euro compared to -1.69 Euro in the first nine months of the previous year, based on the same number of shares.

Events after the balance sheet date

After the reporting period, there have been no transactions of special significance which are of a material significance to the consolidated interim report.

Name	Date	Type of security	Type of transaction	Units	Total value (EUR)
InVision Holding GmbH,	2009-01-12	Shares	Purchase	246,192	1,006,925.28
Ratingen*			(off exchange)

*The Chairman of the Executive Board, Peter Bollenbeck, holds 50 percent of InVision Holding GmbH shares.

Significant transactions between related parties

In the reporting period, the Company purchased project and consulting services from eTimum Software GmbH, Ratingen, in the amount of TEUR 339.

Number of employees

As of September 30, 2009, the InVision Group had 213 employees.

Segment reporting

Given the uniformity of the services provided by the companies of the InVision Group, no partitioning into separate mandatory reporting segments within the meaning of IAS 14 was undertaken.

Responsibility Statement

To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the Group's assets, liabilities, financial position and results of operation, and the Group's interim management report includes a fair review of the development and performance of the business, together with a description of the principal opportunities and risks related to the anticipated development of the Group for the remainder of the fiscal year.

InVision Software AG The Executive Board

Ratingen, November 27, 2009

Financial Calendar 2010

Publication of the Annual Report 2009	30 April 2010
Publication of the report for the first quarter of 2010	31 May 2010
Annual Shareholders' Meeting	June 2010
Publication of the report for the first half-year of 2010	31 August 2010
Publication of the report for the first nine months of 2010	30 November 2010

Investor Relations

InVision Software AG Halskestraße 38 40880 Ratingen (Germany)

phone: +49 (0)2102 728 444 fax: +49 (0)2102 728 111 email: ir@invision.de

Headquarter

Germany +49 (2102) 728 0

Worldwide Offices

Austria +43 (1) 5999 9174

Estonia +372 618 1524

France +33 (0)1 73 29 47 77

Italy +39 (02) 872 86 550

The Netherlands +31 (26) 35 27 537

Scandinavia +46 (8) 678 08 90

Spain +34 (91) 789 3405

Switzerland +41 (44) 308 38 05

United Kingdom +44 (121) 503 2620

United States +1 (630) 799 8370

www.invisionwfm.com info@invisionwfm.com