QUARTERLY REPORT 01.11

»Workforce Management holds tremendous potentials for higher productivity and competitive strengths.«

ATOSS Kunde ABC ATOSS customer SportScheck

Letter to Sharholders

Dear Shareholders, Ladies and Gentlemen,

We are delighted to present the best first quarter in our company's history – in terms of sales as well as results. At EUR 7.8 million turnover was 10 percent higher than in the same period last year, while operating profits (EBIT) rose at an even steeper rate of 16 percent. These strong figures have prompted us to revise our expectations for 2011 as a whole. We have adjusted our original guidance accordingly and now anticipate moderate sales growth with an EBIT margin securely above the 20 percent mark. For a sixth year in succession the company remains on course for record performance.

The mood in the economy and general trends set the scene for a positive business environment

Those who have kept track of ATOSS over time will know that our success stems from a number of factors. We are constantly engaged in innovating and refining our products with an eye to delivering increased customer benefits, and we continue to develop our competitive lead. However there are other strengths, too, that differentiate ATOSS from its competitors, among them our robust reliability: Robust enough to achieve record results even in times of crisis.

The economic upturn is meanwhile also reflected in the IT sector. The forecasts, particularly for the German software market, are encouraging. Industry association BITKOM reports that experts at the European Information Technology Observatory (EITO) are expecting growth of 4.3 percent in 2011. As the economy gathers pace, companies are increasingly investing in modern IT solutions – an ideal scenario.

What's more the dominant trends in the markets are adding increasing weight to the issue of workforce management. The recent crisis has highlighted the decisive importance of corporate structures and processes that are both flexible and adaptable. The ability to rapidly allocate resources in response to fluctuations in the economy is now in the spotlight. Increasingly complex processes require appropriate management. Without IT support the potential permutations are no longer controllable.

Demographic developments, too, play into our hands. The increasing shortage of skilled workers, particularly in western countries, is a challenge that many of our customers face. The attendant complications inherent in personnel resource planning represent additional parameters to be considered as part of the management process. All of these trends contribute to the growing significance of workforce management as a key corporate function. For companies aiming for sustained long-term success, workforce management is now indispensable.

New orders up on last year

In the first quarter of 2011 we acquired a series of new customers. The listed DIY stores chain Praktiker, premium fashion brand Tommy Hilfiger and babywalz, Europe's leading mail order specialist for young families, are just some of the companies that have opted for solutions from ATOSS Software AG. The effect on orders received and on hand for software licenses has been impressive. Our order intake increased by 7 percent compared with the first quarter of 2010, while orders on hand were 10 percent higher than on December 31 last year.

Optimistic view of the future

We are highly satisfied with the start to the new financial year, which lends momentum to our motivation to address the tasks that lie ahead. We have announced our intention to selectively broaden our business model and exploit the potential for growth in carefully chosen sectors and markets.

The work has commenced, and has already be completed in some instances.

We shall also pursue further internationalization. Clients such as Douglas, HORNBACH, Lufthansa, PUMA, s.Oliver and Sixt rely on us to deliver solutions that function irrespective of linguistic and geographic borders. We currently meet these requirements in more than 20 countries and in eight language versions, which are consistently updated to accommodate a wide variety of economic, cultural and legal considerations. Our corporate clients expect us to deliver solutions that are fit for purpose, and we continue to do so.

It is clear that much is happening at ATOSS itself and in our environment. We believe that we are ideally placed to meet these challenges: Our figures for the first quarter serve to prove the point. The investments we have made in research and development, in personnel to strengthen our position for the future and in developing our business model have had no negative effects on our earnings quality. This shows that the course on which we have set out is the right one to achieve further record performance in 2011.

Andreas F.J. Obereder und Christof Leiber, 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: 3-MONTH COMPARISON IN T EUR
	01.01.2011 - 31.03.2011	Of total sales	01.01.2010 - 31.03.2010	Of total sales	Change 2011 / 2010
Total sales	7,848	100%	7,148	100%	10%
Software	4,574	58%	4,352	61%	5%
Software licences	1,652	21%	1,628	23%	1%
Software maintenance	2,922	37%	2,724	38%	7%
Consulting	2,122	27%	1,889	26%	12%
Hardware	887	12%	540	8%	64%
Other	265	3%	367	5%	-28%

EBITDA	2,054	26%	1,785	25%	15%
EBIT	1,936	25%	1,663	23%	16%
EBT	1,967	25%	1,693	24%	16%
Net income	1,337	17%	1,153	16%	16%
Cash flow	3,088	39%	3,116	44%	-1%
Liquidity 1/2	23,682		20,249		17%
EPS (in EUR)	0.34		0.29		16%
Employees 3	253		236		7%

CONSOLIDATED OVERVIEW ACCORDING TO IFRS: QUARTERLY COMPARISON IN T EUR
	Q1/11	Q4/10	Q3/10	Q2/10	Q1/10
Sales	7,848	7,870	7,178	7,118	7,148
Software	4,574	4,652	4,384	4,459	4,352
Software licences	1,652	1,711	1,544	1,658	1,628
Software maintenance	2,922	2,941	2,840	2,801	2,724
Consulting	2,122	2,204	1,928	1,894	1,889
Hardware	887	809	502	601	540
Other	265	206	364	164	367

EBITDA	2,054	1,684	1,928	1,894	1,785
EBIT	1,936	1,582	1,815	1,779	1,663
EBIT margin in %	25%	20%	25%	25%	23%
EBT	1,967	1,642	1,831	1,792	1,693
Net income	1,337	1,183	1,243	1,220	1,153
Cash flow	3,088	-1,168	4,250	-403	3,116
Liquidity 1/2	23,682	20,691	21,980	17,789	20,249
EPS (in EUR)	0.34	0.30	0.31	0.31	0.29
Employees 3	253	247	247	242	236

1: Cash and marketable securities

2: Dividend amounted to EUR 0.50 per share on 03.05.2010 (previous year: EUR 0.44); 3: End of quarter

2.1

4.2

23.7

ECONOMIC BACKGROUND Mood in the ITC market remains positive: Growth of 4.5 percent in the software segment forecast for the current year 2011

ATOSS SOFTWARE AG Above-average increase in profitability Moderate growth expected in 2011 with an EBIT margin above 20 percent

INVESTOR RELATIONS

Share price tracks record development

In 2010 – for the fifth year in succession – ATOSS Software AG achieved record results, and the company continues on the same course in 2011. The long-term share price performance clearly reflects this trend. Since ATOSS began its record-breaking achievements, the stock has risen at twice the rate of the comparative indices. The dividends paid over the same period have also been considerable.

The performance has been just as strong over a shorter timescale. Between the start of 2010 and the end of the first quarter of 2011, the share price increased by 36 percent. Shareholders also received a dividend of EUR 0.50 per share, which together with the share price rise equates to a gain of 40 percent. Over the same period the relevant benchmark, the DAXsubsector Software Performance Index, rose by 35 percent. In the opinion of analysts, institutional investors and journalists, ATOSS stock still holds further potential for future gains. As capital market participants regularly confirm in one to one discussions, the accuracy of our guidance and our reliable public relations activities are among the supporting factors.

Analysts stand by their buy recommendation, raise the upside target by 10 percent

In their report on April 18 the analysts at Warburg Research raised the upside target for ATOSS stock from EUR 20.00 to 22.00 and again confirmed the shares as a buy. Foremost among the reasons for this positive assessment were the continuity and impressive consistency of the company's success. The analysts also attributed the strong position enjoyed by ATOSS primarily to our excellent references and commitment to product development. Other success factors according to the report include our specialization in selected sectors and regions and in the fact – particularly appreciated by customers – that our products are non-manufacturer-dependent and easily compatible, allowing seamless integration with all enterprise resource planning (ERP) systems. The financial strength of ATOSS also underpins its independence. In comparison with its direct competitors, the company has the critical mass to inspire customer confidence in entering into a long-term relationship.

Dividend up 20 percent, distribution equates to half of the earnings per share

At the annual general meeting of ATOSS Software AG on May 3, 2011 the shareholders unanimously approved the proposed dividend of EUR 0.60 for financial year 2010. This is an increase of 20 percent relative to the dividend for 2009. True to its long-standing dividend policy, the company is once again distributing 50 percent of its earnings per share to its shareholders. Based on the closing share price at the end of 2010, this represents a dividend yield of 3.5 percent. Since 2003 ATOSS has made a sustained contribution to shareholder's wealth and distributed EUR 10.70 per share. The journal "€uro am Sonntag" hailed ATOSS as a "true dividend star". Since 2007 the payment has increased from 24 cent to currently 60 cent, and for those who choose to reinvest their dividend, ATOSS is well on the way to compounding their interest.

For further information visit: www.atoss.com

CONSOLIDATED OVERVIEW ACCORDING TO IFRS: QUARTERLY COMPARISON IN EUR
	Q1/11	Q4/10	Q3/10	Q2/10	Q1/10
High	17.92	17.51	16.90	16.80	15.49
Low	14.51	14.65	14.06	13.02	11.85
Share price at end of quarter	16.65	16.92	14.80	16.80	15.25
Treasury stock	49,099	56,099	57,099	64,099	64,099
Dividend paid per share	0.00	0.00	0.00	0.50	0.00
Cash flow per share	0.78	-0.29	1.07	-0.10	0.79
Liquidity per share	5.96	5.22	5.55	4.49	5.11
EPS	0.34	0.30	0.31	0.31	0.29
EPS (diluted)	0.34	0.30	0.31	0.31	0.29

»After five record years in a row ATOSS writes a new chapter of its success story and reports the best first quarter in the history of the company.«

ATOSS Kunde ABC ATOSS customer MPreis

GROUP MANAGEMENT REPORT

1. Business and conditions: Mood in the ITC market remains positive

The upturn in the German economy continues. According to the Joint Economic Forecast for Spring 2011, the upward trend is supported both by demand from abroad and by the domestic economy. Orders booked by German industry from all over the world have increased substantially. However there are risks to the economy both from the development in the oil price and from the in some cases disquieting increase in the sovereign debt levels of individual countries.

Against this economic background, despite the risks, some important indicators are close to an all-time high. The ifo Business Climate Index as of March 31, 2011 was 1.2 points higher than at the end of 2010 and only slightly below the highpoint reached in February 2011. Likewise, in March the ifo Employment Barometer for Germany's manufacturing industry continued to rise for the seventh month in succession. The labor market outlook in Germany remains outstanding.

The leading German economic research institutes have substantially raised their forecast for the development in German's economy in 2011. Gross domestic product is now expected to increase by 2.8 percent. What's more, the experts also expect the economic trend to continue in 2012, albeit at a slower pace. According to the spring report, GDP in 2012 is forecast to rise by 2.0 percent.

The economic upturn and the positive mood in the marketplace are also reflected in the information technology sector. The economic forecast published by hi-tech industry association BITKOM foresees growth of 4.3 percent in the IT sector in 2011 and 4.4 percent in 2012. Growth in the software segment is expected to reach 4.5 percent in 2011 and 4.9 percent in 2012.

A survey conducted by BITKOM in the first quarter of 2011 reveals that companies are taking an optimistic view of the new year. A total of 81 percent of companies in the software business expect sales to increase relative to the first quarter of 2010. For 2011 as a whole, 90 percent of companies surveyed expect to see an increase in sales. However, as the market recovers, the skills shortage is becoming more acute. Some 59 percent of companies cited this as a constraint on business activities.

While these comparisons both at the macroeconomic level and in the IT environment reflect increases that compare with a severely contracted baseline in the preceding year, ATOSS recorded substantial growth last year and continued to grow in the first quarter of 2011. ATOSS has achieved the best first quarter in its history, recording an increase in its core software business of 5 percent relative to last year.

Earnings situation: New record highs in the first quarter of 2011

In the first three months of financial year 2011 ATOSS recorded sales revenues totaling EUR 7.8 million (previous year: EUR 7.1 million), far outstripping last year's record performance. Sales of software licenses and maintenance rose by 5 percent from EUR 4.4 million to EUR 4.6 million. Software maintenance, too, continued to develop positively with turnover increasing by 7 percent from EUR 2.7 million to EUR 2.9 million.

ATOSS also recorded 12 percent growth in consulting in the first quarter of 2011, with revenues increasing from EUR 1.9 million last year to EUR 2.1 million.

The operating profit (EBIT) at EUR 1.9 million developed strongly, increasing by 16 percent over last year's figure of EUR 1.7 million.

Earnings after taxes to March 31, 2011 came in at EUR 1.3 million, also up 16 percent on the EUR 1.2 million recorded in the same period last year. Earnings per share accordingly rose from EUR 0.29 to EUR 0.34.

Orders on hand for software licenses were up 10 percent compared with the end of 2010 at EUR 3.4 million.

2. Net assets and financial position

In the first three months of the year the operating cash flow was on a par with last year at EUR 3.1 million. Liquidity (cash and marketable securities) increased from EUR 20.2 million to EUR 23.7 million. Securities as of March 31, 2011 accounted for EUR 0.6 million.

Liquidity per share stood at EUR 5.96 (previous year: EUR 5.11).

Net earnings of EUR 1.3 million and the date-induced increase in deferred revenues at EUR 4.2 million both impacted positively on cash flow at EUR 3.1 million. Whereas the reduction of EUR 0.9 million in receivables and the EUR 1.2 million decline in financial liabilities both had a negative effect.

As a result of the gratifying development in business, in addition to a 15 percent increase in the balance sheet total ATOSS reported an equity ratio of 59 percent (previous year: 57 percent). Consequently, the company remains extremely well capitalized, with solvency assured at all times.

3. Product development

A high level of expenditure on research and 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 10 percent in the first three months to stand at EUR 1.6 million. As in the year before, development costs equated to 20 percent of overall sales.

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. Personnel

Over the past three months the number of employees has risen by 7 percent from 236 to 253. On March 31, 2011 ATOSS employed 107 software developers (previous year: 96), with a further 71 staff employed in consulting (previous year: 68), 36 in sales and marketing (previous year: 35) and 39 in administration (previous year: 37).

Personnel costs for the first three months of the current financial year at EUR 3.7 million were moderately higher than last year (EUR 3.6 million).

5. Risks associated with future development

There has been no change in the company's risk structure relative to the description contained in the consolidated financial statements to December 31, 2010.

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

In April 2011 the company purchased gold in the amount of EUR 2.0 million and securities in the amount of EUR 1.3 million.

The annual general meeting of ATOSS Software AG took place on May 3, 2011. The meeting adopted the proposal put forward by the Management and Supervisory Boards an approved a dividend of EUR 0.60 per share which was duly paid on May 4, 2011. The total distribution amounted to EUR 2.4 million.

There have been no further reportable events of particular significance since March 31, 2011.

7. Outlook

Against the background of continuing positive development in essential key figures both in the fourth quarter of 2010 and in the first quarter of 2011, and given that the company has just achieved the best first-quarter sales and results in its history, it is now proportionately easier to reliably forecast the outcome for the current financial year. Notwithstanding the investments that are planned, the Management Board expects moderate sales growth in 2011 with an EBIT margin secure above 20 percent. Previous guidance had been for stable to moderately increasing sales revenues with an EBIT margin of around 20 percent for 2011.

CONSOLIDATED BALANCE SHEET TO 31.03.2011
Assets (EUR)	31.03.2011	31.03.2010
Non-current assets
Tangible fixed assets (net)	2,818,855	2,812,173
Intangible assets (net)	150,416	136,155
Deferred taxes	262,133	260,259
Total non-current assets	3,231,404	3,208,587
Current assets
Inventories	9,229	9,480
Trade accounts receivable (net)	3,964,592	3,063,813
Other current assets	1,103,257	801,791
Cash and cash equivalents	23,681,643	20,691,419
Total current assets	28,758,721	24,566,503
Total assets	31,990,125	27,775,090

Equity and Liabilities (EUR)	31.03.2011	31.03.2010
Equity
Subscribed capital	4,025,667	4,025,667
Capital reserve	-387,528	-375,203
Treasury stock	-322,909	-376,284
Unrealized gains/losses recognized in equity	5,377	0
Profit shown on balance sheet	15,633,601	14,296,435
Total equity	18,954,208	17,570,615
Non-current liabilities
Convertible bonds	0	7,000
Pension reserves	1,732,905	1,744,723
Deferred taxes	682,574	727,851
Total non-current liabilities	2,415,479	2,479,574
Current liabilities
Trade accounts payable	308,902	788,217
Other current financial liabilities	2,976,369	4,153,537
Deferred revenues	5,917,047	1,709,514
Tax provisions	1,319,120	974,633
Other provisions	99,000	99,000
Total current liabilities	10,620,438	7,724,901

Assets (EUR)	31.03.2011	31.03.2010
Non-current assets
Tangible fixed assets (net)	2,818,855	2,812,173
Intangible assets (net)	150,416	136,155
Deferred taxes	262,133	260,259
Total non-current assets	3,231,404	3,208,587
Current assets
Inventories	9,229	9,480
Trade accounts receivable (net)	3,964,592	3,063,813
Other current assets	1,103,257	801,791
Cash and cash equivalents	23,681,643	20,691,419
Total current assets	28,758,721	24,566,503
Total assets	31,990,125	27,775,090

Equity and Liabilities (EUR)	31.03.2011	31.03.2010
Equity
Subscribed capital	4,025,667	4,025,667
Capital reserve	-387,528	-375,203
Treasury stock	-322,909	-376,284
Unrealized gains/losses recognized in equity	5,377	0
Profit shown on balance sheet	15,633,601	14,296,435
Total equity	18,954,208	17,570,615
Non-current liabilities
Convertible bonds	0	7,000
Pension reserves	1,732,905	1,744,723
Deferred taxes	682,574	727,851
Total non-current liabilities	2,415,479	2,479,574
Current liabilities
Trade accounts payable	308,902	788,217
Other current financial liabilities	2,976,369	4,153,537
Deferred revenues	5,917,047	1,709,514
Tax provisions	1,319,120	974,633
Other provisions	99,000	99,000
Total current liabilities	10,620,438	7,724,901
Total equity and liabilities	31,990,125	27,775,090

CONSOLIDATED BALANCE SHEET

ATOSS customer W.L. Gore

CONSOLIDATED INCOME STATEMENT FROM 01.01. TO 31.03.2011
		Quarterly report		3-months report
EUR	01.01.2011 - 31.03.2011	01.01.2010 - 31.03.2010	01.01.2011 - 31.03.2011	01.01.2010 - 31.03.2010
Total sales	7,848,480	7,147,867	7,848,480	7,147,867
Cost of sales	-2,451,093	-2,144,403	-2,451,093	-2,144,403
Gross profit on sales	5,397,387	5,003,464	5,397,387	5,003,464
Sales costs	-1,258,292	-1,286,461	-1,258,292	-1,286,461
Administration costs	-614,810	-646,661	-614,810	-646,661
Research and development costs	-1,564,465	-1,425,741	-1,564,465	-1,425,741
Other operating income	5,484	26,627	5,484	26,627
Other operating expenses	-29,252	-8,378	-29,252	-8,378
Operating result (EBIT)	1,936,052	1,662,850	1,936,052	1,662,850
Interest and similar income	50,939	49,527	50,939	49,527
Interest and similar expenses	-19,735	-19,046	-19,735	-19,046
Earnings before taxes	1,967,256	1,693,331	1,967,256	1,693,331
Taxes on income and earnings	-630,090	-540,269	-630,090	-540,269
Net profit	1,337,166	1,153,062	1,337,166	1,153,062

Earnings per share (undiluted)	0.34	0.29	0.34	0.29
Earnings per share (diluted)	0.34	0.29	0.34	0.29

Average number of shares in circulation (undiluted)	3,972,179	3,960,979	3,972,179	3,960,979
Average number of shares in circulation (undiluted)	3,976,568	3,976,568	3,976,568	3,976,568

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FROM 01.01. TO 31.03.2011
EUR	01.01.2011 - 31.03.2011	01.01.2010 - 31.03.2010
Net income for the year	1,337,166	1,153,062
Changes in equity not recognized in the income statement	46,427	3,970
Other income for the period after taxes	46,427	3,970
Comprehensive income after taxes	1,383,593	1,157,032

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED INCOME STATEMENT

CONSOLIDATED CASH FLOW STATEMENT FROM 01.01. TO 31.03.2011
EUR	01.01.2011 - 31.03.2011	01.01.2010 - 31.03.2010
Net profit	1,337,166	1,153,062
Depreciation of fixed assets	117,713	122,225
Loss/gain on the disposal of fixed assets	246	511
Changes in deferred taxes	-47,151	428,213
Provisions for pension commitments	-11,818	9,289
Variations in other items not recognized in profit or loss	5,377	0
Change in net current assets
Trade accounts receivable	-900,778	1,392,271
Inventories and other current financial assets	-301,215	-588,673
Trade accounts payable	-479,315	392,025
Other current financial liabilities	-1,184,168	-1,792,909
Deferred revenues	4,207,532	1,997,713
Tax provisions	344,488	2,360
Other provisions	0	0
Cash flow generated through business operations (1)	3,088,077	3,116,087
Cash flow from investment activities
Acquisition of tangible and intangible assets	-138,903	-2,199,265
Disposal of tangible fixed assets	0	0
Cash flow generated through investment activities (2)	-138,903	-2,199,265
Cash flow from financing activities
Expenditure for the purchase of treasury stock	0	0
Income from the sale of treasury stock	41,050	3,970
Dividend payments	0	0
Cash flow generated through financing activities (3)	41,050	3,970
Changes in liquidity 1 – total of (1) to (3)	2,990,224	920,792
Liquidity 1 at the beginning of the period	20,691,419	19,328,060
Liquidity 1 at the end of the period	23,681,643	20,248,852

CONSOLIDATED CASH FLOW STATEMENT

¹ Liquidity: Cash and marketable securities

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

One share represents 1 euro of subscribed capital.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY TO 31.03.2011 EUR Subscribed capital Capital reserve Treasury stock Unrealized gains/losses recognized in equity Unappropriated net profit Total As of 01.01.2010 4,025,667 -301,013 -491,034 0 11,478,130 14,711,750 Net profit 0 0 0 0 1,153,062 1,153,062 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 0 0 As of 31.03.2010 4,025,667 -309,793 -478,284 0 12,631,192 15,868,782 As of 01.01.2011 4,025,667 -375,203 -376,284 0 14,296,435 17,570,615

Net profit	0	0	0	0	1,337,166	1,337,166
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	0	0
Other changes in equity	0	0	0	5,377	0	5,377
As of 31.03.2011	4,025,667	-387,528	-322,909	5,377	15,633,601	18,954,208

NOTES TO THE CONSOLIDATED FINANCAL STATEMENT

»High expenditures in research and development remain a key component of the ATOSS growth strategy.«

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.

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 March 31, 2011 for the reporting period from January 1, 2011 to that date.

3. Currency

All figures are stated in euro. Figures 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 March 31, 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 three months of the financial year 7,000 treasury shares were dispensed in response to the exercise of convertible bonds. On March 31, 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.

7. Total sales

The company's total sales were composed as follows:

EUR	01.01.2011 - 31.03.2011	01.01.2010 - 31.03.2010
Software licenses	1,651,531	1,628,030
Software maintenance	2,922,651	2,723,883
Total software	4,574,182	4,351,913
Consulting	2,121,896	1,888,504
Hardware	887,237	540,064
Others	265,165	367,386
Total sales	7,848,480	7,147,867

The geographic breakdown of total sales was as follows:

EUR	01.01.2011 - 31.03.2011	01.01.2010 - 31.03.2010
Germany	7,093,774	6,472,072
Austria	471,136	398,370
Switzerland	147,895	129,164
German-speaking territories in total	7,712,805	6,999,606
Other countries	135,675	148,261
Total sales	7,848,480	7,147,867

8. Personnel costs

The consolidated personnel costs to March 31, 2011 were composed as follows:

EUR	01.01.2011 - 31.03.2011	01.01.2010 - 31.03.2010
Wages and salaries	3,042,166	2,948,451
Social security contributions and expenditure on retirement pensions and welfare	624,570	661,803
Total personnel costs	3,666,736	3,610,254

9. Other operating income and expenses

In the first three months of the current financial year the company recorded other operating income in the amount of EUR 5,484 (previous year: EUR 26,627). This essentially comprised income from exchange rate differentials. Other operating expenses in the amount of EUR 29,252 (previous year: EUR 8,378) principally comprised exchange rate losses.

10. Financial investment income and expenses

In the first three months of the current financial year the company recorded financial income in the amount of EUR 50,939 (previous year: EUR 49,527). This essentially comprised interest on fixed-term deposits.

The company also recorded financial expenses amounting as of March 31, 2011 to EUR 19,735 (previous year: EUR 19,046). This essentially concerned expenditure in connection with pension provisions.

11. Tax charge

Consolidated tax expenses to March 31, 2011 were comprised as follows:

EUR	01.01.2011 - 31.03.2011	01.01.2010 - 31.03.2010

Pre-tax earnings as per IFRS	1,967,256	1,693,331
Expected tax charge (2011: 32.98%, 2010: 32.98%)	-648,801	-558,461
Non-deductible operating expenses	-2,599	-3,788
Tax refunds for previous years	0	3,858
Differences in tax rates at consolidated companies	21,310	18,122
Actual Group tax charge	-630,090	-540,269

12. Earnings per share

The figure for earnings per share is arrived at by dividing the result for the period in the amount of EUR 1,337,166 by the weighted average number of shares outstanding. From January 1 to March 31, 2011 there were an average of 3,972,179 shares in circulation. Thus earnings per share for this period amounted to EUR 0.34, in comparison with EUR 0.29 in the first three months of the preceding year.

In order to calculate diluted earnings per share, the result for the period must be adjusted to allow for the interest cost relating to convertible bonds in the amount of EUR 22 (previous year: EUR 78). In addition the average number of shares outstanding is increased with the inclusion of shares potentially issued as a result of convertible bonds. From January 1 to March 31, 2011 there were an average of 4,389 convertible bonds in circulation. Thus the diluted earnings per share for this period amounted to EUR 0.34, in comparison with EUR 0.29 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 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 working time 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 - 31.03.2011	01.01.2010 - 31.03.2010
Total sales
ATOSS Staff Efficiency Suite (ASES) and ATOSS Startup Edition (ASE)	7,222,062	6,577,824
ATOSS Time Control (ATC)	626,418	570,043
Total sales	7,848,480	7,147,867

Operating result (EBIT)
ATOSS Staff Efficiency Suite (ASES) and ATOSS Startup Edition (ASE)	1,790,334	1,584,037
ATOSS Time Control (ATC)	145,718	78,813
Total operating result (EBIT)	1,936,052	1,662,850

14. Employees

On March 31, 2011 the company had 253 employees:

EUR	01.01.2011 - 31.03.2011	01.01.2010 - 31.03.2010
Development	107	96
Consulting	71	68
Sales and marketing	36	35
Administration	39	37
Total	253	236

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 March 31, 2011 comprised three members:

Peter Kirn	Chairman
Richard Hauser	Deputy Chairman (since 14.01.2011)
Rolf Baron Vielhauer von Hohenhau	Member of the Supervisory Board

17. Board member shareholdings

On the reporting date of March 31, 2011 board members held the following numbers of ATOSS shares:

EUR	31.03.2011	31.12.2010	30.09.2010	30.06.2010	31.03.2010
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 March 31, 2011 no board members held bonds convertible into ATOSS shares.

19. Convertible bonds

As of March 31, 2011 some 7,000 convertible bonds had been exercised. On that date there were no convertible bonds outstanding.

20. Notifiable participating interests

In the first three 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 three months of the financial year 2011 the value of these services amounted to EUR 1,872 (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

In April 2011 the company purchased gold in the amount of EUR 2,003,350 and securities in the amount of EUR 1,281,119.

The annual general meeting of ATOSS Software AG took place on May 3, 2011. The meeting adopted the proposal put forward by the Management and Supervisory Borads an apporved a dividend of EUR 0.60 per share which was duly paid on May 4, 2011. The total distribution amounted to EUR 2,385,941.

There have been no reportable events of particular import subsequent to March 31, 2011.

Munich, May 16, 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

25.07.2011	Press release announcing the 6-monthly statements	RESPONSIBLE
15.08.2011	Publication of the 6-monthly financial statements	ATOSS Software AG Am Moosfeld 3 D-81829 München
24.10.2011	Press release announcing the 9-monthly statements	Fon +49.89.4 27 71 - 0 Fax +49.89.4 27 71 - 100
14.11.2011	Publication of the 9-monthly financial statements	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 [email protected]

PHOTOGRAPHY Customers of ATOSS Software AG

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

[email protected] www.atoss.com