ATOSS Software AG — Interim / Quarterly Report 2011

Aug 15, 2011

02.11 Half-Yearly Report QUARTERLY REPORT

»Companies are increasingly investing in workforce management solutions in order to boost their productivity and competitive strengths.«

ATOSS Kunde ABC ATOSS customer MEYER WERFT

Letter to Sharholders

Dear Shareholders, Ladies and Gentlemen,

With the first half of the 2011 financial year now behind us, this is an ideal time to take stock and see where we stand. We have double-digit growth rates to report, with sales up by 10 percent as well as a 13 percent increase in operating profits (EBIT)!

How has this above-average growth come about?

In the first place, of course, we have our customers to thank. In the first half of 2011 we were able to build on existing customer relationships and secure follow-up orders. In addition we have also acquired a large number of new customers for our products and services.

Take for example the premium fashion brand Tommy Hilfiger which is now using our ATOSS Retail Solution at 70 of its own stores and outlets. The next step will comprise a Europewide roll-out. The Praktiker DIY stores group has now also joined the ranks of ATOSS customers. The group's 8,000-strong workforce employed at over 400 stores will in future be managed using ATOSS solutions. We are also particularly pleased with recent developments in the health sector, where we have received orders for the ATOSS Medical Solution from the BDH Klinik Verbund. The ATOSS Time Solution and Resource Allocation will be employed to support 1,400 staff working at three clinics.

Why is workforce management so important for enterprises?

It is interesting to note that it is above all trend setters and market leaders who are focusing on our field of workforce management and committing to investments. One reason surely is and remains the short period over which costs are visibly amortized. With results evident in between three and a maximum of twelve months, it is quite simply worthwhile. There are other parameters, however, that matter to these companies that have a keen eye for the markets of the future.

High on the list are wage costs, which even in the crisis in 2009 climbed 5 percent. More important still, however, is the question of how in the face of fierce competition to find and retain skilled employees? Skilled labor is quite simply in short supply. A report by consultants at Pricewaterhouse-Coopers (PwC), for example, predicts that from 2020 onwards the health sector will see a dramatic increase in staff shortages in both in- and out-patient care which will affect both medical and non-medical staff. In many sectors the lack of qualified personnel is more than just an open secret. Good staff are expensive to employ and expensive to find. Which makes labor efficiency the number one issue for the future. With workforce management, ATOSS offers the right strategic tools: A fact that more and more companies are now recognizing.

How does ATOSS maintain its leading position in the market?

Over many years ATOSS has worked hard at securing a substantial lead over its competitors. While Java EE technology provides the basis, the consistent development and refinement of our products and solutions should not go unnoticed.

Since 2000 we have been conducting regular customer surveys in association with an independent institute. The predominant issue is customer satisfaction. Our scores have improved from year to year, reaching a peak of 1.5 in February 2011! What's more, this customer satisfaction is reflected on our balance sheet. In 2010 ATOSS did not write off any bad debts whatsoever. Non-payments amounted to zero. This might also be described as proof of our outstanding customer relations and sound business processes, as well as of the great strength of our business model.

What are the prospects for the second half?

We are the clear leader in research and development. Not just because 44 percent of our employees are concentrated in this area, but because we spare neither cost – witness our R&D expenditure – nor effort – compare our short development cycles and internal quality controls – in our drive to create the very best for our customers. This expense, however, is not without reward. Andreas F.J. Obereder und Christof Leiber, half of the year.

After the first six months, we start from an excellent position. We have posted record figures with consolidated sales amounting to EUR 15.8 million, while the operating profit (EBIT) came in at EUR 3.9 million – leaving us with an EBIT margin of 25 percent. We therefore remain on the course on which we first set out in 2006, and we aim to make this another record year.

The forecasts for the IT industry are favorable. The latest estimates by the market research company Gartner Group put global sales in 2011 at 3.7 trillion US dollars. That would be an increase of 7 percent, some three percentage points higher than the expected growth in the global economy. In Germany, following on from negative growth in 2009 and an increase of 3.0 percent in 2010, industry association BITKOM

expects to see growth this year of 4.3 percent. The mood is brighter and more positive. At ATOSS the trend is reflected in orders received for software licenses, which in the first half totaled a very satisfactory EUR 3.3 million. And the figure of EUR 3.1 million for orders on hand as of June 30 offers the promise of continuing successful development in the second

Board of Management, ATOSS Software AG

Yours truly,

Andreas F.J. Obereder Christof Leiber

Chief Executive Officer Member of the Board of Management

Facts Overview

CONSOLIDATED OVERVIEW ACCORDING TO IFRS: 6-MONTH COMPARISON IN T EUR
	01.01.2011 - 30.06.2011	Proportion of sales	01.01.2010 - 30.06.2010	Proportion of sales	Change 2011 / 2010
Sales	15,762	100%	14,265	100%	10%
Software	9,280	59%	8,811	62%	5%
Software licences	3,328	21%	3,286	23%	1%
Software maintenance	5,952	38%	5,525	39%	8%
Consulting	4,306	27%	3,782	27%	14%
Hardware	1,435	9%	1,141	8%	26%
Other	741	5%	531	4%	40%
EBITDA	4,108	26%	3,679	26%	12%
EBIT	3,877	25%	3,442	24%	13%
EBT	3,982	25%	3,485	24%	14%
Net income	2,704	17%	2,373	17%	14%
Cash flow	3,931	25%	2,713	20%	45%
Liquidity 1/2	22,375		17,789		26%
EPS (in EUR)	0.68		0.60		14%
Employees 3	249		242		3%

CONSOLIDATED OVERVIEW ACCORDING TO IFRS: QUARTERLY COMPARISON IN T EUR
	Q2/11	Q1/11	Q4/10	Q3/10	Q2/10
Sales	7,913	7,848	7,870	7,178	7,118
Software	4,705	4,574	4,652	4,384	4,459
Software licences	1,676	1,652	1,711	1,544	1,658
Software maintenance	3,029	2,922	2,941	2,840	2,801
Consulting	2,184	2,122	2,204	1,928	1,894
Hardware	548	887	809	502	601
Other	476	265	206	364	164

CONSOLIDATED OVERVIEW ACCORDING TO IFRS: QUARTERLY COMPARISON IN T EUR
	Q2/11	Q1/11	Q4/10	Q3/10	Q2/10
Sales	7,913	7,848	7,870	7,178	7,118
Software	4,705	4,574	4,652	4,384	4,459
Software licences	1,676	1,652	1,711	1,544	1,658
Software maintenance	3,029	2,922	2,941	2,840	2,801
Consulting	2,184	2,122	2,204	1,928	1,894
Hardware	548	887	809	502	601
Other	476	265	206	364	164
EBITDA	2,054	2,054	1,684	1,928	1,894
EBIT	1,941	1,936	1,582	1,815	1,779
EBIT margin in %	25%	25%	20%	25%	25%
EBT	2,015	1,967	1,642	1,831	1,792
Net income	1,367	1,337	1,183	1,243	1,220
Cash flow	843	3,088	-1,168	4,250	-403
Liquidity 1/2	22,375	23,682	20,691	21,980	17,789
EPS (in EUR)	0.34	0.34	0.30	0.31	0.31
Employees 3	249	253	247	247	242

1: Cash and equivalents, other current and non-current financial assets (e.g. equities, gold ) 2: Dividend of EUR 0.50 per share on May 3, 2010 (T EUR 1,981) and EUR 0.60 per share on May 4, 2011 (T EUR 2,386)

3: At the end of the quarter

ECONOMIC BACKGROUND Sovereign debt levels continue to cause atmospheric interference in the Eurozone Growth of around 4 percent forecast for the IT industry in Germany in 2011

ATOSS SOFTWARE AG Double-digit growth in sales and earnings Product and technology leadership further expanded Customer survey reveals record scores

INVESTOR RELATIONS

INVESTOR RELATIONS 9

ATOSS share price remains highly stable

Once again in 2011, German stock markets are continually affected and occasionally put under pressure by fresh reports focusing on the debt levels of individual Eurozone countries as well as the USA. The ATOSS stock, however, has not fallen prey to this nervousness. In the short term – from a low in March of EUR 15.20 – including the dividend, the stock has recorded a gain of 8 percent in the first half-year. Over the period from the start of 2010 through to mid 2011, the share price has put on 39 percent. Taking into account the dividends paid during this period totaling EUR 1.10 (2010: EUR 0.50/ 2011: EUR 0.60) the gain amounts to 48 percent. Whereas in the same period the comparative DAXsubsector Software Performance Index rose by 33 percent.

The movement in the long term is clearer still. Since ATOSS began its continuing record development in business in 2006, the company's stock has increased in value by 159 percent in addition to the regularly increasing dividends paid to shareholders. The comparative index rose by 13 percent over the same period.

Analysts see continuing strong potential with a target share price of EUR 22

In response to the publication of the figures for the first half of 2011, the analysts at Warburg Research stressed in a note dated July 25 that with its second quarter performance, ATOSS had seamlessly continued the strong growth seen in recent years. They also pointed to our continuing achievements in acquiring new customers, and to the fact that ATOSS was recording further strategic successes through its partnership with an SAP system specialist. As they also pointed out, another partner has been identified who will market the solutions developed by ATOSS internationally (in Europe).

Warburg sees the possibility that guidance may once again be increased following the third quarter. Having calculated a price to earnings ratio of around 8 for the coming year, after adjusting for liquid assets, the analysts continued to rate our stock as a buy with an upside target of EUR 22.

ATOSS as a conservative stock is profiting from stock market uncertainties

Particularly at a time when uncertainty prevails on the capital markets, stocks such as ATOSS attract increasing investor attention. The positive long-term outlook for the stock based on the stability of our business model and of course the development in our business in past years is appreciated by investors. The share price is further underpinned by our high liquidity and an inviting dividend yield. For institutional investors, too, these are decisive attractions in a harsh stock market environment. We are delighted that ATOSS is arousing the interest of a steadily growing audience, not least because consistent support from institutional investors also helps to stabilize the price of ATOSS stock. Our open and transparent communications policy is another contributing factor.

Key figures per share – the facts speak for ATOSS

Earnings per share again developed positively, rising by 14 percent relative to the year before to stand at EUR 0.68. Cash flow per share as of June 30, 2011 stood at EUR 0.99, with liquidity per share at EUR 5.63. The dynamic development in earnings continues – the facts speak for ATOSS.

Dividend paid to shareholders

The dividend of EUR 0.60 per share approved unanimously at the AGM on May 3, totaling around EUR 2.4 million, was paid to shareholders on May 4. Since our dividend policy was first adopted in 2003, around half of the earnings per share have been distributed each year. In this matter the management attaches great importance to dependability, transparency and consistency. The compound effect of reinvesting the dividend is another argument in favor of an investment.

For further information visit: www.atoss.com

CONSOLIDATED OVERVIEW ACCORDING TO IFRS: QUARTERLY COMPARISON IN EUR
	Q2/11	Q1/11	Q4/10	Q3/10	Q2/10
High	18.28	17.92	17.51	16.90	16.80
Low	16.15	14.51	14.65	14.06	13.02
Share price at end of quarter	17.11	16.65	16.92	14.80	16.80
Treasury stock	49,099	49,099	56,099	57,099	64,099
Dividend paid per share	0.60	0.00	0.00	0.00	0.50
Cash flow per share	0.99	0.78	-0.29	1.07	-0.10
Liquidity per share	5.63	5.96	5.22	5.55	4.49
EPS	0.34	0.34	0.30	0.31	0.31
EPS (diluted)	0.34	0.34	0.30	0.31	0.31

»Our interim results: double digit growth rates in sales and earnings. This creates a very good position for a successful 2011 business year.«

ATOSS Kunde ABC ATOSS customer SportScheck

GROUP MANAGEMENT REPORT

1. Business and conditions: Buoyant mood continues in the high-tech sector

The upturn continues in the German economy. According to the latest ifo Institute forecast, the upward trend is expected to continue, albeit at a slower pace. ifo intimates that the strong momentum that has been in evidence since early 2010 is unlikely to be fully maintained in the second half of 2011. However, the positive underlying economic trend remains unaltered. This position is further bolstered by attractive borrowing conditions, rising employment and robust demand from abroad. Against this background the ifo Institute expects to see a full-year rise in gross domestic product of 3.3 percent in 2011.

The Deutsche Bundesbank, too, in its half-yearly forecast sees a strong possibility of an "extended period of expansion" in the German economy, with the 3.6 percent growth recorded last year followed up by a 3.1 percent increase in 2011. Among the particular factors underpinning this positive mood are the rise in consumer demand and the strong development in the labor market.

The mood remains buoyant in the high-tech sector. The current forecast by the European Information Technology Observatory (EITO) indicates that the global IT market will grow by 4.3 percent in the current year to some EUR 963.4 billion. Growth in the European Union is estimated at 2.9 percent. Market research experts at the Gartner Group expect to see growth of up to 7 percent in the global IT industry this year, some three percentage points ahead of the expected increase in the global economy as a whole. In Germany, meanwhile, trade association BITKOM is predicting growth of 4.3 percent, significantly above the EU average.

BITKOM's latest economic survey reveals that 74 percent of high-tech businesses are expecting an increase in sales in 2011. 66 percent of companies surveyed reported higher sales in the second quarter relative to the same period last year. However the shortage of skilled staff is identified as a problem, to the extent that for 59 percent of companies surveyed, a lack of highly qualified specialists is seen as the biggest obstacle to growth.

With growth in the economy as a whole set to slow in 2011, and with an increase of 4.3 percent forecast for the IT sector in Germany, in the first half of the year ATOSS remained on course with sales growth of 10 percent.

Earnings situation: ATOSS growth far outpaces the market

In the first six months of financial year 2011 ATOSS recorded sales totaling EUR 15.8 million (previous year: EUR 14.3 million), far outstripping last year's record performance. Sales of software rose by 5 percent from EUR 8.8 million to EUR 9.3 million. Software maintenance, too, continued to develop positively with turnover also increasing by 8 percent from EUR 5.5 million to EUR 6.0 million.

In the consulting area, ATOSS recorded growth of 14 percent in the first six month of 2011, with revenues rising from EUR 3.8 million last year to EUR 4.3 million. This even exceeded the very strong performance recorded in 2009 when sales revenues came in at EUR 4.2 million.

The operating profit (EBIT) at EUR 3.9 million developed strongly, increasing by 13 percent over the previous year's figure of EUR 3.4 million.

Net income to June 30, 2011 came in at EUR 2.7 million, representing growth of 14 percent relative to the EUR 2.4 million recorded in the same period last year. Earnings per share accordingly rose from EUR 0.60 to EUR 0.68.

Orders on hand for software licenses as of June 30, 2011 increased slightly to EUR 3.1 million (previous year: EUR 3.0 million), providing an excellent starting point for the second half-year.

2. Net assets and financial position

In the first six months, cash flow from operations was substantially higher at EUR 3.9 million (previous year: EUR 2.7 million). Cash and equivalents slipped from EUR 17.8 million to EUR 15.8 million. At the same time, however, in the first half of 2011 ATOSS made investments in other current and non-current financial assets (equities, gold) totaling EUR 6.2 million (previous year: EUR 0) and paid a dividend of EUR 0.60 (previous year: EUR 0.50) per share.

Liquidity per share on June 30, 2011 including these other current and non-current financial assets accordingly stood at EUR 5.63 (previous year: EUR 4.49).

In addition to net income of EUR 2.7 million, the EUR 3.9 million in cash flow was also boosted by an increase in deferred revenues of EUR 1.9 million. On the other hand, cash flow was correspondingly reduced by a reduction of EUR 0.5 million in trade accounts payable.

As a result of the gratifying development in business, in addition to increasing its balance sheet total by some 6 percent, ATOSS also recorded an equity ratio of 61 percent (previous year: 60 percent). The company thus remains extremely well capitalized, with solvency assured at all times.

3. Product development

A high level of expenditure on research & development remains an important component of the ATOSS growth strategy with the goal of further extending the company's strong position as a technological leader in workforce management. Research and development costs rose by 13 percent in the first six months to stand at EUR 3.2 million (previous year: EUR 2.9 million). R&D costs as a proportion of overall sales amounted to 21 percent (previous year: 20 percent).

The company continues to refrain from capitalizing the expense of developing new products. All expenditure for this purpose is recognized in the income statement in the period in which it is incurred.

4. Employees

Over the past six months the number of employees has risen from 242 to 249. On June 30, 2011 ATOSS employed 110 software developers (previous year: 105), with a further 69 staff employed in consulting (previous year: 70), 34 in sales and marketing (previous year: 31) and 36 in administration (previous year: 36).

Personnel costs for the first six months of the current financial year amounted to EUR 7.5 million (previous year: EUR 7.1 million).

5. Risks associated with future development

There has been no fundamental change in the company's risk structure relative to the description contained in the consolidated financial statements to December 31, 2010. The investment strategy announced in the annual report to December 31, 2010 was consistently implemented and refined during the first half of 2011. The company's liquid funds are invested wholly or partly in other financial assets (gold, equities) as well as in fixed-term and other bank deposits. ATOSS continues to counter financial risk through regular monitoring of the financial market as well as weekly reports to the Management Board and a monthly report to the Supervisory Board on the development in financial investments.

As in the past, the company's investment policy continues to focus on preserving the value of freely available resources.

6. Events after the reporting period

By a resolution adopted by the Supervisory Board on July 4, 2011, the contract with Management Board member Christof Leiber has been extended by a further five years from April 1, 2012 until March 31, 2017.

In accordance with a resolution adopted on July 22, 2011, the Supervisory Board has authorized the Management Board to purchase additional physical gold in the amount of up to EUR 12.0 million. In total the Management Board is now authorized to purchase physical gold at a cost of up to EUR 17.0 million. On the basis of the resolution adopted on July 22, 2011 the company has acquired physical gold in the amount of EUR 9.5 million. In total, the company has thus far purchased physical gold in the amount of EUR 13.8 million.

There have been no further reportable events of particular significance since June 30, 2011.

7. Outlook

All of the company's essential performance figures continued to develop positively in the first six months of 2011. The Management Board therefore stands by its forecast for moderate sales growth in 2011 with an EBIT margin securely greater than 20 percent.

CONSOLIDATED BALANCE SHEET TO 30.06.2011 Assets (EUR) 30.06.2011 31.12.2010 Non-current assets Tangible fixed assets (net) 2,813,527 2,812,173 Intangible assets (net) 151,657 136,155 Deferred taxes 305,482 260,259 Other financial assets 4,403,292 0 Total non-current assets 7,673,958 3,208,587 Current assets Inventories 11,540 9,480 Trade accounts receivable (net) 3,183,839 3,063,813 Other financial assets 2,182,734 399,816 Other non-financial assets 591,411 401,975 Cash and equivalents 15,789,363 20,691,419 Total current assets 21,758,887 24,566,503 Total assets 29,432,845 27,775,090 Equity and Liabilities (EUR) 30.06.2011 31.12.2010 Equity capital Subscribed capital 4,025,667 4,025,667

Assets (EUR)	30.06.2011	31.12.2010
Non-current assets
Tangible fixed assets (net)	2,813,527	2,812,173
Intangible assets (net)	151,657	136,155
Deferred taxes	305,482	260,259
Other financial assets	4,403,292	0
Total non-current assets	7,673,958	3,208,587
Current assets
Inventories	11,540	9,480
Trade accounts receivable (net)	3,183,839	3,063,813
Other financial assets	2,182,734	399,816
Other non-financial assets	591,411	401,975
Cash and equivalents	15,789,363	20,691,419
Total current assets	21,758,887	24,566,503
Total assets	29,432,845	27,775,090
Equity and Liabilities (EUR)	30.06.2011	31.12.2010
Equity capital
Subscribed capital	4,025,667	4,025,667
Capital reserve	-387,528	-375,203
Treasury stock	-322,909	-376,284
Equity deriving from unrealized profits/losses	-34,662	0
Profit shown on balance sheet	14,614,673	14,296,435
Total equity	17,895,241	17,570,615
Non-current liabilities
Convertible bonds	0	7,000
Pension provisions	1,721,087	1,744,723
Deferred taxes	787,100	727,851
Total non-current liabilities	2,508,187	2,479,574
Current liabilities
Trade accounts payable	250,004	788,217
Other liabilities	3,510,655	4,153,537
Deferred revenues	3,602,573	1,709,514
Tax provisions	1,567,185	974,633
Other provisions	99,000	99,000
Total current liabilities	9,029,417	7,724,901
Total equity and liabilities	29,432,845	27,775,090

CONSOLIDATED BALANCE SHEET

ATOSS customer Benetton

QUARTERLY REPORT Q2.2011

CONSOLIDATED INCOME STATEMENT FROM 01.01. TO 30.06.2011
		Quarterly report		6-months report
EUR	01.04.2011 - 30.06.2011	01.04.2010 - 30.06.2010	01.01.2011 - 30.06.2011	01.01.2010 - 30.06.2010
Sales	7,913,355	7,117,580	15,761,835	14,265,447
Cost of sales	-2,220,106	-2,200,367	-4,671,199	-4,344,770
Gross profit on sales	5,693,249	4,917,213	11,090,636	9,920,677
Selling costs	-1,470,876	-1,178,570	-2,729,169	-2,465,031
Administration costs	-652,973	-570,759	-1,267,783	-1,217,420
Research and development costs	-1,679,130	-1,435,835	-3,243,595	-2,861,577
Other operating income	60,079	53,295	65,563	79,922
Other operating expenses	-8,864	-5,885	-38,116	-14,262
Operating profit (EBIT)	1,941,485	1,779,459	3,877,536	3,442,309
Interest and similar income	92,702	31,147	143,641	80,675
Interest and similar expenses	-19,522	-19,043	-39,256	-38,089
Earnings before taxes (EBT)	2,014,665	1,791,563	3,981,921	3,484,895
Taxes on income and earnings	-647,652	-572,034	-1,277,742	-1,112,303
Net income	1,367,013	1,219,529	2,704,179	2,372,592
Earnings per share (undiluted)	0.34	0.31	0.68	0.60
Earnings per share (diluted)	0.34	0.31	0.68	0.60
Average number of shares in circulation (undiluted)	3,976,568	3,961,568	3,974,386	3,961,275
Average number of shares in circulation (diluted)	3,976,568	3,976,568	3,976,568	3,976,568

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FROM 01.01. TO 30.06.2011
EUR	01.01.2011 - 30.06.2011	01.01.2010 - 30.06.2010
Net income	2,704,179	2,372,592
Changes in equity not recognized in the income statement	6,388	3,970
Other income for the period after taxes	6,388	3,970
Comprehensive income after taxes	2,710,567	2,376,562

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED INCOME STATEMENT

CONSOLIDATED CASH FLOW STATEMENT FROM 01.01. TO 30.06.2011
EUR	01.01.2011 - 30.06.2011	01.01.2010 - 30.06.2010
Operating activities
Net income	2,704,179	2,372,592
Depreciation of fixed assets	230,813	236,266
Gain/loss on the disposal of fixed assets	246	511
Changes in deferred taxes	14,026	791,121
Changes in pension provisions	-23,637	18,577
Adjustment for other items not recognized in profit or loss	19,849	0
Change in net current assets
Trade accounts receivable	-120,026	1,275,171
Inventories and other current financial assets	-191,497	-566,614
Trade accounts payable	-538,213	73,927
Other current financial liabilities	-649,882	-1,421,482
Deferred revenues	1,893,058	-129,231
Tax provisions	592,553	40,221
Other provisions	0	22,143
Cash flows from operating activities (1)	3,931,469	2,713,202
Investing activities
Acquisition of tangible and intangible assets	-247,914	-2,275,095
Disposal of tangible and intangible assets	0	0
Acquisition of other financial assets	-6,240,720	0
Disposal of other financial assets	0	0
Cash flows used in investing activities (2)	-6,488,634	-2,275,095
Financing activities
Expenditure for the purchase of treasury stock	0	0
Income from the sale of treasury stock	41,050	3,970
Dividend payments	-2,385,941	-1,980,784
Cash flows from financing activities (3)	-2,344,891	-1,976,814
Changes in cash and equivalents – total of (1) to (3)	-4,902,056	-1,538,707
Cash and equivalents at the beginning of the period	20,691,419	19,328,060
Cash and equivalents at the end of the period	15,789,363	17,789,353

CONSOLIDATED CASH FLOW STATEMENT

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

One share represents 1 euro of subscribed capital.

ATOSS customer BACARDI

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY TO 30.06.2011

EUR	Subscribed capital	Capital reserve		Treasury stock Equity deriving from unrealized profits/losses	Unappropriated net profit	Total
As of 01.01.2010	4,025,667	-301,013	-491,034	0	11,478,130	14,711,750
Net income	0	0	0	0	2,372,592	2,372,592
Sale of treasury stock	0	-8,780	12,750	0	0	3,970
Purchase of treasury stock	0	0	0	0	0	0
Dividend	0	0	0	0	-1,980,784	-1,980,784
As of 30.06.2010	4,025,667	-309,793	-478,284	0	11,869,938	15,107,528
As of 01.01.2011	4,025,667	-375,203	-376,284	0	14,296,435	17,570,615
Net income	0	0	0	0	2,704,179	2,704,179
Sale of treasury stock	0	-12,325	53,375	0	0	41,050
Purchase of treasury stock	0	0	0	0	0	0
Dividend	0	0	0	0	-2,385,941	-2,385,941
Other changes in equity	0	0	0	-34,662	0	-34,662
As of 30.06.2011	4,025,667	-387,528	-322,909	-34,662	14,614,673	17,895,241

NOTES TO THE CONSOLIDATED FINANCAL STATEMENT

»Our mission is to provide our customers with advanced workforce management solutions. Therefore we are constantly investing in the further development of our state of the art software.«

1. General

The present report has been prepared in accordance with International Financial Reporting Standards (IFRS) in compliance with IAS 1.14. In particular the report complies with the provisions contained in IAS 34 "Interim Financial Reporting". The requirements contained in German Accounting Standard (DRS) No. 6 regarding interim reporting have likewise been fulfilled.

In accordance with IAS 34.20, the present statements include a consolidated balance sheet, consolidated income statement, consolidated statement of comprehensive income, consolidated cash flow statement, a statement of changes in consolidated equity and explanatory notes to the consolidated statements.

The same financial accounting, valuation and computation methods have been applied as in the case of the annual financial statements to December 31, 2010. In accordance with IAS 39, the other financial assets (equities, gold) acquired in the first half-year have been classified as financial assets available for sale and valued accordingly.

The Management Board is satisfied that the impression of the economic situation of the company, its net assets, financial position, earnings situation and cash flow conveyed by the present quarterly financial statements accords with the true facts. This interim report has not undergone an auditors' inspection or statutory audit.

2. Reporting period

The present interim report was prepared to June 30, 2011 for the reporting period from January 1, 2011 to that date.

3. Currency

All figures are stated in euro. Amounts are rounded up to whole euro units.

4. Group of consolidated companies

In addition to the parent company ATOSS Software AG, Munich, the consolidated financial statements to June 30, 2011 also include all subsidiary companies:

ATOSS CSD Software GmbH, Cham, Germany ATOSS Software Ges.mbH, Vienna, Austria ATOSS Software AG, Zurich, Switzerland ATOSS Software S.R.L., Timisoara, Romania

These companies are fully consolidated.

5. Changes in equity

The development in equity is evident from the statement of changes in consolidated equity.

6. Treasury stock

In the first six months of the financial year 7,000 treasury shares were dispensed in response to the exercise of convertible bonds. On June 30, 2011 the company held 49,099 treasury shares acquired at an average price of EUR 6.58. Treasury stock is reported as a separate equity item at cost of acquisition.

QUARTERLY REPORT Q2.2011

7. Sales

The company's sales were composed as follows:

EUR	01.01.2011 - 30.06.2011	01.01.2010 - 30.06.2010
Software licenses	3,327,621	3,286,139
Software maintenance	5,951,919	5,525,286
Total software	9,279,540	8,811,425
Consulting	4,305,585	3,782,296
Hardware	1,434,765	1,140,671
Others	741,945	531,055
Total Sales	15,761,835	14,265,447

The geographic breakdown of Sales was as follows:

EUR	01.01.2011 - 30.06.2011	01.01.2010 - 30.06.2010
Germany	14,286,775	12,928,837
Austria	864,629	798,061
Switzerland	382,665	274,778
German-speaking territories in total	15,534,069	14,001,676
Other countries	227,766	263,771
Total Sales	15,761,835	14,265,447

8. Personnel costs

The consolidated personnel costs to June 30, 2011 were composed as follows:

EUR	01.01.2011 - 30.06.2011	01.01.2010 - 30.06.2010
Wages and salaries	6,180,081	5,814,332
Social security contributions and expenditure on retirement pensions and welfare	1,300,303	1,275,427
Total personnel costs	7,480,384	7,089,759

9. Other operating income and expenses

In the first six months of the current financial year the company recorded other operating income in the amount of EUR 65,563 (previous year: EUR 79,922). This essentially comprised income resulting from exchange rate differentials in the amount of EUR 56,616 (previous year: EUR 48,319) and income the liquidation of provisions in the amount of EUR 6,758 (previous year: EUR 6,401). The other operating expenses amounting to EUR 38,116 (previous year: EUR 14,262) essentially related to exchange rate losses.

10. Financial investment income and expenses

In the first six months of the current financial year the company recorded income in the amount of EUR 143,641 (previous year: EUR 80,675) from financial investments. This essentially comprised interest income from overnight and fixed-term deposits in the amount of EUR 90,478 (previous year: EUR 77,649) and dividends received in the amount of EUR 47,511 (previous year: EUR 0).

The company also recorded expenses amounting as of June 30, 2011 to EUR 39,256 (previous year: EUR 38,089). This essentially concerned expenditure in connection with pension provisions.

11. Tax charge

Consolidated tax expenses to June 30, 2011 were comprised as follows:

EUR	01.01.2011 - 30.06.2011	01.01.2010 - 30.06.2010
Eearnings before taxes (EBT)	3,981,921	3,484,895
Expected tax charge (2011: 32.98%, 2010: 32.98%)	-1,313,238	-1,149,318
Non-deductible operating expenses	-9,230	-7,830
Tax refunds for previous years	0	4,658
Differences in tax rates at consolidated companies	44,726	40,187
Actual Group tax charge	-1,277,742	-1,112,303

12. Earnings per share

The figure for earnings per share is arrived at by dividing the net income in the amount of EUR 2,704,179 by the weighted average number of shares outstanding. Between January 1 and June 30, 2011 there were an average of 3,974,386 shares in circulation. Thus earnings per share for this period amounted to EUR 0.68, in comparison with EUR 0.60 in the first six months of the preceding year.

In order to calculate diluted earnings per share, the net income must be adjusted to allow for the interest cost relating to convertible bonds in the amount of EUR 22 (previous year: EUR 153). In addition the average number of shares outstanding is increased with the inclusion of shares potentially issued as a result of convertible bonds. Between January 1 and June 30, 2011 there were an average of 2,182 convertible bonds in circulation. Thus the diluted earnings per share for this period amounted to EUR 0.68, in comparison with EUR 0.60 in the preceding year.

13. Segment reporting

The company has only one uniform business segment which comprises the creation, sale and implementation of software solutions directed towards the efficient deployment of personnel.

The individual software solutions comprise:

ATOSS Staff Efficiency Suite (ASES) and ATOSS Startup Edition (ASE):

ASES and ASE are working time management and personnel resource planning solutions for customers of all sizes in all industries. These software solutions are generally accompanied by other services covering implementation and training. In addition consulting services are rendered with the object of making meaningful use of the available scope and developing optimum solutions for the efficient deployment of personnel under specific operating conditions and in consideration of works agreements and industry-wide pay deals. The company also sells hardware components for time recording and access control purposes. ASES/ASE software is used in conjunction with all major standard system

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QUARTERLY REPORT Q2.2011

platforms and databases. Moreover thanks to the extensive facility to define customer-specific parameters these solutions are capable of satisfying even the most sophisticated requirements of customers of all sizes in all industries.

ATOSS Time Control (ATC):

ATC offers a software solution to time and attendance management and personnel resource planning for small and medium-sized customers as well as large but decentrally organized clients. Likewise, in conjunction with ATC, ATOSS offers software implementation and training as well as consulting services. Merchandise including hardware and recording media is also available. ATC software is installed on the Microsoft Windows system platform in association with standard SQL databases and is particularly user-friendly and convenient for small to medium-sized customers as well as large decentralized organizations.

EUR	01.01.2011 - 30.06.2011	01.01.2010 - 30.06.2010
Sales
ATOSS Staff Efficiency Suite (ASES) and ATOSS Startup Edition (ASE)	14,529,185	13,124,662
ATOSS Time Control (ATC)	1,232,650	1,140,785
Total Sales	15,761,835	12,265,447
Operating profit (EBIT)
ATOSS Staff Efficiency Suite (ASES) and ATOSS Startup Edition (ASE)	3,613,429	3,238,746
ATOSS Time Control (ATC)	264,107	203,563
Total operating profit (EBIT)	3,877,536	3,442,309

14. Employees

On June 30, 2011 the company had 249 employees:

EUR	01.01.2011 - 30.06.2011	01.01.2010 - 30.06.2010
Development	110	105
Consulting	69	70
Sales and marketing	34	31
Administration	36	36
Total	249	242

15. Executive Board

The company's Management Board continued to comprise two members:

Andreas F.J. Obereder	Chief Executive Officer
Christof Leiber	Executive Board

16. Supervisory Board

The company's Supervisory Board as of June 30, 2011 comprised three members:

Peter Kirn	Chairman
Richard Hauser	Deputy Chairman
Rolf Baron Vielhauer von Hohenhau	Member of the Supervisory Board

17. Board member shareholdings

On the reporting date of June 30, 2011 board members held the following numbers of ATOSS shares:

EUR	30.06.2011	31.03.2011	31.12.2010	30.09.2010	30.06.2010
Andreas F.J. Obereder	1,981,184	1,981,184	1,981,184	1,981,184	1,981,184
Peter Kirn	19,760	19,760	19,760	19,760	19,760

18. Convertible bonds held by board members

As of June 30, 2011 no board members held bonds convertible into ATOSS shares.

19. Convertible bonds

Up to June 30, 2011 some 7,000 convertible bonds had been exercised. As of that date there were no convertible bonds outstanding.

20. Notifiable participating interests

In the first six months of financial year 2011 the company received no notifications regarding changes in participating interests pursuant to Sections 21 ff. of the German Securities Trading Act.

21. Business transactions with closely related persons

The wife of the Chief Executive Officer provides services to the company. In the first six months of the financial year 2011 the value of these services amounted to EUR 4,316 (previous year: EUR 2,236).

The company is satisfied that the terms agreed for these transactions are standard market terms.

22. Events after the reporting period

By a resolution adopted by the Supervisory Board on July 4, 2011, the contract with Management Board member Christof Leiber has been extended by a further five years from April 1, 2012 until March 31, 2017.

In accordance with a resolution adopted on July 22, 2011, the Supervisory Board has authorized the Management Board to purchase additional physical gold in the amount of up to EUR 12.0 million. In total the Management Board is now authorized to purchase physical gold at a cost of up to EUR 17.0 million. On the basis of the resolution adopted on July 22, 2011 the company has acquired physical gold in the amount of EUR 9.5 million. In total, the company has thus far purchased physical gold in the amount of EUR 13.8 million.

There have been no other reportable events of particular import subsequent to June 30, 2011.

Munich, August 15, 2011

Andreas F.J. Obereder Christof Leiber Chief Executive Officer Member of the Board

of Management

Disclaimer

This report contains forward-looking statements that are based on the conviction of the Management Board of ATOSS Software AG and reflect current assumptions and estimations. These forward-looking statements are subject to risks and uncertainties. Many facts that cannot currently be predicted may cause the actual performance and earnings of ATOSS Software AG to develop in a different manner. This could for example include the non-acceptance of newly introduced products or services, changes in the general economic and business climate, a failure to achieve efficiency and cost-reduction targets or changes in business strategy.

The Management Board is firmly convinced that the expectations embodied in these forward-looking statements are sound and realistic. Should however the above-mentioned or other unforeseeable risks materialize, ATOSS Software AG cannot guarantee that the expressed expectations will prove to be correct.

We hereby give an assurance to the best of our knowledge and belief that in accordance with the applicable interim reporting standards these interim consolidated financial statements convey an impression of the net assets, financial position and earnings situation of the Group which accords with the true facts; and that the development in business including the results and the situation of the Group are so described in the interim consolidated management report as to convey an impression which likewise accords with the true facts; and that the essential opportunities and risks associated with the anticipated development of the Group in the remainder of the financial year are so described.

Declaration by the Legal Representatives

Imprint

24.10.2011	Press release announcing the 9-monthly statements	RESPONSIBLE
14.11.2011	Publication of the 9-monthly financial statements	ATOSS Software AG Am Moosfeld 3 D-81829 München
22.11.2011 Analysts conference, Deutsches Eigenkapitalforum, Frankfurt		Fon +49.89.4 27 71 - 0 Fax +49.89.4 27 71 - 100 www.atoss.com
		INVESTOR RELATIONS
		ATOSS Software AG Investor Relations Christof Leiber Fon +49.89.4 27 71 - 265
	Fax +49.89.4 27 71 - 100 Christof.Leiber@atoss.com

PHOTOGRAPHY Customers of ATOSS Software AG P. 16: Benetton / Josh Olins

Corporate Calendar

OTHER OFFICES

Düsseldorf Fon + 49. 21 50. 9 65 - 0

Frankfurt Fon + 49. 69. 66 05 99 - 0

Hamburg Fon + 49. 40. 27 81 63 - 0

Stuttgart Fon + 49. 711. 7 28 73 20 - 0

SUBSIDIARIES

Germany ATOSS CSD Software GmbH, Cham Fon +49. 99 71. 85 18 - 0

Austria ATOSS Software Ges.mbH, Vienna Fon + 43. 1. 7 17 28 - 334

Switzerland ATOSS Software AG, Zurich Fon + 41. 44. 308 39 - 56

Romania ATOSS Software SRL, Timisoara Fon + 40. 356. 71 01 82

ATOSS Software AG

Am Moosfeld 3 D-81829 Munich Fon +49.89.4 27 71- 0 Fax +49.89.4 27 71- 100

info@atoss.com www.atoss.com