Nemetschek SE

Quarterly Report • Aug 8, 2008

Half Year Report to June 30, 2008

To the Shareholders, Employees and Friends of the Company

Ladies and gentlemen,

Once again it is my pleasure to present you with positive news at the end of the second quarter this year: our group has achieved its goals and is thus clearly on track in these economically challenging times.

The trust we enjoy among our customers and partners is refl ected in our good fi rst-half results. We managed to improve on all key fi gures once again.

Compared to the same period last year, we increased revenues by 5.1 percent to 73.3 million euros. Adjusted to take currency fl uctuations into account, the organic revenue growth is even 7.5 percent. The operating result increased to 15.3 million euros and is thus up by 9.7 percent on the EBITDA in the fi rst half of 2007.

Nemetschek is a leading vendor worldwide for information technology for building design, construction and management and has enjoyed an excellent reputation for four decades. In the current Lünendonk list of medium-sized German providers of standard software, we rank third with the superb results of the last business year.

In the second half of this year, our Graphisoft, Vectorworks and Maxon brands will be rolling out new versions of their intelligent software. The new products will set standards in terms of performance and user-friendliness and play a decisive part in this year's accounts.

We are continuing with our long-term investment in research and development as well as in innovative services. We are exploring new avenues in marketing and sales. We have caused a furor in the sector worldwide with our umbrella brand strategy and its "moving minds" slogan.

Nemetschek's strategy is forward-looking. Our aim is to further expand our business with existing customers and to acquire new customers and capture new markets. The focus here is on the emerging markets, in particular in Eastern Europe and China. We consider sustainability and environmental compatibility to be key issues. The clinic showcased in this report is an example of a building designed in line with the "Green Building" principle.

We are very well equipped for the challenges in a market environment that is still diffi cult, and we are healthily optimistic as we enter the second half of the year.

Yours sincerely,

Ernst Homolka CEO

The Share

Chart does not refl ect positive business development

The Nemetschek Group's continued positive development is still not currently refl ected on the stock exchange. From the group's perspective, the Nemetschek share price is unsatisfactory. The uncertain world economic situation continues to infl uence the stock markets and the price of Nemetschek stock is also affected by this phenomenon.

The stock reached its Q2 high on May 20, 2008, at 19.30 euros. In the subsequent weeks, the Nemetschek stock suffered further setbacks

in a volatile environment and ended the second quarter at 16.70 euros. Nemetschek Group analysts value the target price at an average of 24.30 euros.

Nemetschek continued to achieve good results in the fi rst half of 2008 and is continuing to meet its goals. Comparing the company's key fi gures with its unsatisfactory stock price shows that the stock price develops irrespective of the company's positive progress.

Price development of the Nemetschek share from March 1, 2006 onward

Nemetschek Group at a Glance

Millions of €	June 30, 2008	June 30, 2007	Change
Revenues	73.3	69.8	5.1 %
Operating income	74.5	71.1	4.8 %
Gross profi t	69.9	66.2	5.6 %
as % of revenue	95.4 %	94.9 %
EBITDA	15.3	13.9	9.7 %
as % of revenue	20.8 %	19.9 %
per share in €	1.58	1.44
EBIT	10.4	9.0	15.7 %
as % of revenue	14.2 %	12.9 %
per share in €	1.08	0.94
Net income (Group shares)	6.7	5.6	18.3 %
per share in €	0.69	0.59
Net income (Group shares) without PPA effects	9.6	8.5	12.1 %
per share in €	0.99	0.89
Net income	7.0	5.9	17.6 %
Cash fl ow for the period	14.1	13.1	7.8 %
Cash and cash equivalents	20.9	33.8	– 38.2 %
Equity	63.4	55.6	14.1 %
Equity ratio	36.5 %	29.4 %
Average number of outstanding shares (undiluted)	9,625,000	9,625,000	0.0 %

Graphisoft – A Hungarian Success Story

Graphisoft was acquired by Nemetscheck AG on December 31, 2006. For 26 years, Graphisoft has had a rich history of providing the design community with innovative model based design software. Literally millions of great buildings around the world have been designed using Graphisoft's ArchiCAD.

Graphisoft was founded in 1982. In the beginning, 3D software was created to serve the specifi c requirements of Hungary's power plant program. Then, the company realized that there was a larger group that could appreciate the power of 3D software on inexpensive personal computers. They were architects. With its software on the MAC and then later on the PC, Graphisoft built up a network of independent distributors, subsidiaries and resellers globally. Graphisoft's ArchiCAD is used in more than 100 countries worldwide. Graphisoft's headquarters continues to be in Budapest, where most of the product engineering takes place. Graphisoft is able to draw upon the extensive mathematical talent available at the top technical universities in Hungary.

Interview with Dominic Gallello, Graphisoft

Dominic Gallello is the CEO of Graphisoft. He has led the company for fi ve years through a period of rebuilding, market expansion and dynamic growth.

Mr. Gallello, it has been 19 months since the acquisition of Graphisoft was fi rst announced. How has the transition been?

Very easy! It was clearly stated from the beginning that the acquisition of Graphisoft was to put another great brand in the Nemetschek family and the rest was fi nancial in nature. Having made this clear from the outset, allowed our staff and partners to focus on growing our business and serving our customers.

Our investors are very interested in Graphisoft. Could you update them? The best way to do this is in the context of our brand ethos and brand mantra. Brand ethos is what is at your core, the thing that gives you strength. For us, it always has been and continues to be fi ghting spirit, technical innovation and authenticity for architects. Brand mantra is a bit different. It is the touchstone that shapes the kind of products and services you offer, how you do business and whom you hire. The Graphisoft brand mantra is creative, productive and enjoyable design experiences.

How would you describe your tenure in running Graphisoft?

There were four phases – product, marketing, sales and people development. Graphisoft was always great at product innovation, but in the beginning I worked closely with the team to create a "customer driven" development cycle. We changed many things about the process, including having a clear three year roadmap. In the end, we have created a very powerful methodology which is as good as any I have seen in the world. Phase two was about marketing. We were determined to be as good in marketing on a global basis as we were in developing software. We harnessed the power of the web and the MySpace and Facebook

generation of employees to create truly legendary marketing which serves our partners very well. The third phase of our development is in sales competency. We created a sales methodology that we are rolling out to all of our offi ce and partners worldwide. The last phase, which has been a continuous process, is in the development of people – our absolutely most valuable asset. We have worked on leadership and management development programs, processes to

globalize people, and a new program to develop the next generation of leadership. You can never put enough energy into this most important activity.

The next major milestone in Graphisoft's life is the new release of ArchiCAD 12 which just shipped. What are customers saying? It is a big hit but we knew it before we ever shipped. Approximately 50 percent of our 100 beta users went into production on billable projects during the beta cycle. This is unheard of in the software industry. It really speaks for the extremely high quality built into our development process and the innovation built into the release.

What are the biggest trends you see in the building industry over the next few years?

The "green" challenge, design teams working globally and China's move to 3D. Going "green" is a moral responsibility. Our aim is to give architects dramatically better decision making tools to be employed during the critical fi rst few weeks of a design project when the major decisions regarding sustainability are really made. The second big trend is that design teams are moving to a decentralized model where teams are working together on the same building project from across the street, across the country and across the world. This requires new kinds of technology which will support this process dramatically better than current systems do today. We plan to deliver on this opportunity. Finally, China is still an almost all 2D market that is starting to move to 3D. Although there has been a building boom going on, I expect it to accelerate. By 2025, there will be 1 billion urban dwellers. That is 350 million more people than today. This requires an enormous amount of design and a lot of it will be model based. We are taking steps now, so that we can be an active participant in this history in the making.

What is the thing you are most proud of in your fi ve years of running Graphisoft?

Watching smart and passionate people grow both professionally and personally. It has been amazing.

Report on the Earnings, Financial and Asset Situation

Successful fi rst half

In the fi rst six months, Nemetschek once again achieved its goals and remains on course despite the diffi cult economic situation. Revenues increased by 5.1 %, the EBIT and the annual net income are seeing two-fi gure growth (15.7 % and 18.3 %, respectively). Adjusted to take currency fl uctuations into account, organic revenue growth would be 7.5 %, and EBIT growth would be 21.1 %.

The Nemetschek Group increases revenues to 73.3 million euros (previous year: 69.8 million euros). The group EBITDA grows by 9.7 % to 15.3 million euros (previous year: 13.9 million euros), with an EBITDA margin of 20.8 % (previous year: 19.9 %). Net income (Group shares) rises by 1.1 million euros to 6.7 million euros (previous year: 5.6 million euros). The period cash fl ow is up by 7.8 % at 14.1 million euros (previous year: 13.1 million euros).

Stable proportion of revenue from outside Germany

Outside Germany, the Nemetschek Group generated revenues of 45.9 million euros in the fi rst six months (previous year: 43.9 million euros). Domestic business shows positive tendencies and increases to 27.4 million euros (previous year: 25.8 million euros). Foreign revenue for the Nemetschek Group remains unchanged at just under two thirds of overall revenues. Adjusted to take currency fl uctuations into account, foreign revenue would be 1.7 million euros more.

Consolidated Income Statement

for the period from January 1 to June 30, 2008 and 2007

Thousands of €	2nd quarter 2008	2nd quarter 2007	6 months 2008	6 months 2007
Revenues	36,919	35,327	73,348	69,771
Own work capitalized	21	68	92	232
Other operating income	493	480	1,072	1,103
Operating income	37,433	35,875	74,512	71,106
Cost of materials / cost of purchased services	– 2,150	– 2,574	– 4,572	– 4,870
Personnel expenses	– 15,081	– 15,805	-– 30,543	– 30,312
Depreciation of property, plant and equipment and amortization of intangible assets	– 2,430	– 2,450	– 4,831	– 4,890
thereof amortization of intangible assets due to purchase price allocation	– 1,846	– 1,846	– 3,692	– 3,692
Other operating expenses *)	– 12,953	– 10,677	– 24,144	– 22,023
Operating expenses	– 32,614	– 31,506	– 64,090	– 62,095
Operating results	4,819	4,369	10,422	9,011
Interest income	854	902	1,183	1,385
Interest expenses	– 410	– 1,042	– 2,249	– 2,452
Income from associates	58	23	133	67
Earnings before taxes	5,321	4,252	9,489	8,011
Income taxes	– 1,420	– 1,104	– 2,523	– 2,088
Net income for the year	3,901	3,148	6,966	5,923
Of this amount: equity holders of the parent	3,770	3,053	6,661	5,631
Minority interests	131	95	305	292
	3,901	3,148	6,966	5,923
Earnings per share (undiluted) in euros	0.39	0.32	0.69	0.59
Earnings per share (diluted) in euros	0.39	0.31	0.69	0.58
Average number of shares outstanding (undiluted)	9,625,000	9,625,000	9,625,000	9,625,000
Average number of shares outstanding (diluted)	9,625,000	9,700,000	9,625,000	9,712,500

*) in 2007 including reclassifi cation of losses from discontinued operations in Graphisoft Group

Design business unit increases revenues by 3.8 million euros

The Design and Build business segments improve compared to the same period in the previous year. The Design segment increases by 6.8 % to 59.9 million euros. The EBITDA margin is 20.1 % (previous year: 18.4 %). The Build business unit increases revenues by 2.3 % and generates an EBITDA margin of 27.9 % (previous year: 29.1 %).

Owing to exchange rate fl uctuations, revenues at the Maxon Group in the Multimedia segment are at the same level as last year: 4.1 million euros. Adjusted to take currency fl uctuations into account, the

Maxon Group would have grown by approx. 8 %. The EBITDA margin of 31.5 % (previous year: 32.4 %) continues to make a positive contribution to the group's results.

The Manage business unit has not yet achieved the high revenues generated in the previous year. Nemetschek Crem Solutions achieves revenues of 2.8 million euros (previous year: 3.3 million euros) with a marginally positive EBITDA.

Consolidated Balance Sheet

as of June 30, 2008 and December 31, 2007

Assets Thousands of €	June 30, 2008	Dec. 31, 2007
Current assets
Cash and cash equivalents	20,890	29,121
Trade receivables, net	19,964	24,645
Inventories	879	892
Tax refunded claims for income taxes	3,610	2,406
Current fi nancial assets	141	166
Prepaid expenses and other current assets	6,066	4,264
Current assets, total	51,550	61,494
Non-current assets
Property, plant and equipment	4,916	4,800
Intangible assets	57,693	60,340
Goodwill	51,345	51,602
Associates / investments	419	570
Deferred tax assets	5,801	5,500
Non-current fi nancial assets	937	1,047
Other non-current assets	909	1,107
Non-current assets, total	122,020	124,966

Assets, total	173,570	186,460

Period cash fl ow increases to 14.1 million euros

The positive development of the fi rst six months has a positive infl uence on the period cash fl ow (increase of 7.8 %). The cash fl ow from ordinary activities is stable at 16.2 million euros, the same level as the previous year.

The cash fl ow from investment activities amounts to – 2.5 million euros (previous year: – 98.5 million euros) due to investments in fi xed assets. The value for the previous year includes the payment for the purchase of Graphisoft SE shares. In the fi rst half of the year, Nemetschek repaid 12.7 million euros of the 100 million euro fi nancing loan. In total,

43.2 million euros had been repaid by June 30, 2008. Furthermore, the cash fl ow from fi nancing activities also includes the dividend payment (decided on May 21, 2008) of 6.3 million euros and interest for the rest of the bank loan as well as the minority interests paid out to minority shareholders in the fi rst half.

Stable liquidity with a high equity ratio

Despite total loan, dividend and interest payments of 21.9 million euros, liquid assets have only changed by 8.2 million euros to 20.9 million euros (previous year: 29.1 million euros).

Equity and liabilities Thousands of €	June 30, 2008	Dec. 31, 2007
Current liabilities
Short-term loans and current portion of long-term loans	15,535	16,274
Trade payables	5,192	6,598
Payments on account	166	100
Provisions and accrued liabilities	11,386	13,371
Deferred income	14,487	10,186
Income tax liabilities	1,413	3,079
Other current liabilities	5,167	4,452
Current liabilities, total	53,346	54,060
Non-current liabilities
Long-term loans without current portion	41,387	53,419
Deferred tax liabilities	14,387	14,489
Pension provisions	664	639
Other non-current liabilities	364	967
Non-current liabilities, total	56,802	69,514
Equity
Subscribed capital	9,625	9,625
Capital reserves	41,465	41,646
Revenue reserve	52	52
Currency translation	– 3,459	– 4,169
Retained earnings	14,766	14,395
	62,449	61,549
Minority interests	973	1,337
Equity, total	63,422	62,886
Equity and liabilities, total	173,570	186,460

Consolidated Cash Flow Statement

for the period from January 1 to June 30, 2008 and 2007

Thousands of €	2008	2007
Profi t before tax	9,489	8,011
Depreciation and amortization of fi xed assets	4,831	4,890
Change in pension provision	25	12
Non-cash transactions	– 182	291
Income from associates	– 133	– 67
Expenses / income from disposal of fi xed assets	118	– 11
Cash fl ow for the period	14,148	13,126
Interest income	– 1,183	– 1,385
Interest expenses	2,249	2,452
Change in other provisions and accrued liabilities	– 1,985	– 1,283
Change in trade receivables	4,681	3,546
Change in inventories, other assets	– 928	1,273
Change in trade payables	– 1,406	– 1,797
Change in other liabilities	890	628
Cash received from payouts from associates	284	134
Interest received	689	801
Income taxes received	95	514
Income taxes paid	– 1,345	– 1,782
Cash fl ow from operating activities	16,189	16,227
Capital expenditure	– 2,580	– 1,260
Changes in liabilities from acquisitions	10	– 97,197
Cash received from the disposal of fi xed assets	112	14
Disposal of liquid assets from deconsolidation	0	– 41
Cash fl ow from investing activities	– 2,458	– 98,484
Dividend payment	– 6,256	– 5,390
Minority interests paid	– 703	– 548
Proceeds from borrowings	0	100,000
Repayments of borrowings	– 12,771	– 22,000
Change in liabilities to banks due to acquisitions	0	– 1,000
Interest paid	– 2,223	– 2,363
Proceeds from repayment of borrowings	0	14,514
Cash fl ow from fi nancing activities	– 21,953	83,213
Changes in cash and cash equivalents	– 8,222	956
Effect of exchange rate differences on cash and cash equivalents	– 9	– 120
Cash and cash equivalents at the beginning of the period	29,121	34,511
Cash and cash equivalents at the end of the period	20,890	35,347

Consolidated Segment Reporting for the Period from January 1 to June 30, 2008 and 2007

Thousands of €	2008 Revenue	2008 Amortization and depreciation	2008 EBITDA	2007 Revenue	2007 Amortization and depreciation	2007 EBITDA
Design	59,944	4,645	12,032	56,111	4,677	10,329
Build	6,473	73	1,803	6,327	85	1,838
Manage	2,840	32	129	3,265	38	416
Multimedia	4,091	81	1,289	4,068	90	1,318
Total	73,348	4,831	15,253	69,771	4,890	13,901

Statement of Changes in Group Equity

for the period from December 31, 2006 to June 30, 2008

			Equity allocable to the parent company's shareholders
Thousands of €	Subscribed capital	Capital reserve	Revenue reserves	Currency translation	Retained earnings / ac cumulated loss	Total	Minority interests	Total equity
As of December 31, 2006	9,625	41,640	52	– 2,811	5,242	53,748	1,357	55,106
Share purchase from minorities						0	6	6
Additional share purchase						0	– 20	– 20
Share-based payments		6				6		6
Income payment from minority interests					– 44	– 44	– 733	– 777
Difference from currency translation				– 1,358		– 1,358	– 33	– 1,391
Dividend payments					– 5,390	– 5,390		– 5,390
Net income for the year					14,587	14,587	760	15,347
As of December 31, 2007	9,625	41,646	52	– 4,169	14,395	61,549	1,337	62,886
Share-based payments		– 181				– 181		– 181
Income payment from minority interests					– 34	– 34	– 669	– 703
Difference from currency translation				710		710		710
Dividend payments					– 6,256	– 6,256		– 6,256
Net income for the year					6,661	6,661	305	6,966
As of June 30, 2008	9,625	41,465	52	– 3,459	14,766	62,449	973	63,422

Shares Owned by the Board Members on June 30, 2008

	Stock portfolio
Managing Board
Ernst Homolka	225
Michael Westfahl*)	0
Supervisory Board
Kurt Dobitsch	0
Prof. Georg Nemetschek	1,411,322
Rüdiger Herzog	0
Alexander Nemetschek**)	1,107,705

*) Member of the Managing Board until May 20, 2008

**) Member of the Supervisory Board until February 26, 2008 Short-term current assets decrease by 9.9 million euros to 51.6 million euros. Long-term current assets decrease by 2.9 million euros to 122.0 million euros, mainly due to planned depreciation of current assets from purchase price allocation.

15.5 million euros of the current liabilities relate to the current portion of the bank loan from the Graphisoft acquisition. 41.3 million euros of the non-current liabilities relate to the long-term portion of the bank loan.

The equity ratio increases to 36.5 % (December 31, 2007: 33.7 %). Equity amounts to 63.4 million euros after dividend payments of 6.3 million euros (December 31, 2007: 62.9 million euros).

Earnings per share increase by 18.3 %

After depreciation from purchase price allocation of 3.7 million euros and interest of 2.2 million euros on the bank loans, Nemetschek increases its net income (Group shares) in the fi rst half to 6.7 million euros (previous year: 5.6 million euros). The earnings per share (undiluted) improved by 18.3 % to 0.69 euros (previous year: 0.59 euros).

Events after the end of the reporting period

There were no signifi cant events after the end of the reporting period.

Employees

As of June 30, the Nemetschek Group employs 1,125 people, 40 more than in the same period of the previous year.

Quarterly statement based on IAS / IFRS

The Nemetschek Group's quarterly statement is compiled in accordance with the International Accounting Standards Board's (IASB) International Financial Reporting Standards (IFRS). The consolidated fi nancial statements as of June 30, 2008, are unaudited. They are based on the same accounting, appraisal and calculation methods as the annual fi nancial statements dated December 31, 2007. The group of companies is the same as on December 31, 2007.

Report on signifi cant transactions with associated companies and individuals

The group performs business transactions with associated companies and individuals. These are part of normal business operations and are treated in the same way as for external third parties. They are categorized according to IAS 24.18(g) as other associated companies and individuals. Signifi cant transactions entered for the fi rst half of 2008 are the rental expenses of 1.2 million euros with associated individuals (previous year: 1.3 million euros). Nemetschek AG and Concentra GmbH & Co. KG, Munich (limited partner: Mr. Alexander Nemetschek, among others) have had an offi ce space rental contract since fi scal 2000.

Opportunity and risk report

Please see the annual fi nancial statements of Nemetschek AG as of December 31, 2007 for details on the most signifi cant opportunities and risks for the prospective development of the Group over the remaining months of this fi nancial year. There were no signifi cant changes during the period covered by this report.

Report on forecasts and other statements on the prospective development

Despite the subdued economic outlook due to the fi nancial crisis on the capital markets and rising energy costs, Nemetschek expects business to develop positively over the remaining six months. According to current assessments, the EBITDA margin will stabilize at the same high level as in 2007. Please see the details of the annual fi nancial statements of Nemetschek AG as of December 31, 2007. No new knowledge has come to light that would change the main substance of the forecasts and other statements on the prospective development of the group for this fi nancial year.

Declaration of compliance

"To the best of my knowledge, and in accordance with the applicable reporting principles for interim fi nancial reporting, the interim consolidated fi nancial statements give a true and fair view of the assets, liabilities, fi nancial position and profi t or loss of the group, and the interim management report of the group includes a fair review of the development and performance of the business and the position of the group, together with a description of the principal opportunities and risks associated with the expected development of the group for the remaining months of the fi nancial year."

Munich, August 2008

Ernst Homolka CEO

Mills-Peninsula – A "Green" Clinic in California

With the construction site situated just three kilometers from the San Andreas Fault, the location is not exactly ideal. Nonetheless, in the Northern Californian town of Burlingame, on an area of 42,000 square meters, a clinic is being constructed that will be one of the most earthquake-resistant and technologically advanced hospitals in the United States once it is completed in 2010.

The six-story building was designed by Anshen + Allen, one of the leading architectural fi rms for health care in the United States. California's strict earthquake safety requirements were a signifi cant challenge for the planning team. But that wasn't all: the future Mills-Peninsula Clinic is also intended to set new standards when it comes to energy effi ciency and family friendliness.

In order to meet these requirements, planning team participants counted on the Building Information Modeling (BIM) methodology. Anshen + Allen used Graphisoft's ArchiCAD software to create the intelligent data model that merged the architects' plans with those of all other fi rms involved in the project. This program from the Hungarian software vendor was also used to visualize the building in three dimensions. The 3D model made it possible for planners to run simulations and detect confl icts before they turned into expensive delays during the construction process.

The Mills-Peninsula Clinic is being created as the fi rst seismically isolated hospital in Northern California. The building is being constructed on self-aligning friction bearings with seismic dampers that glide across the de-coupled foundation in case of an earthquake and allow the building to swing up to fi ve centimeters high and 75 centimeters to the side. Even in case of an earthquake that measures 8.0 on the openended Richter scale, the clinic would not suffer any large damage and could remain functional.

The newly constructed building is also designed to be family-friendly. Once the clinic is completed, it will feature individual rooms and overnight accommodations for family members of patients, all of them with a view of the attractive natural panorama of San Francisco Bay in the distance. In addition, almost every room is being planned with integrated family areas. Also, outdoor garden areas and roof gardens will offer recreational options. Ceiling-high windows and well-lit courtyards will bring natural daylight to interior areas. Graphisoft's ArchiCAD software was used to visualize the design elements. Realistic video simulations already gave the impression of a relaxing environment, on the inside and outside, even before the start of the project.

However, the patients' well-being wasn't the only focus of the project's design and layout. The architects also used a sustainable concept and integrated numerous energy-saving and ecological components in their planning, from cooling roofs to thermal glass to furniture made from recycled materials.

Using the data provided by the building model, the planning team was able to calculate the costs the building would incur over its lifetime and performed a heat-comfort analysis that depended on the design of the building's exterior wall cladding. The team was thus able to plan a clinic that is 30 percent more energy-effi cient than comparable buildings and thus meets all the requirements of a "green" building.

NEMETSCHEK Aktiengesellschaft Konrad-Zuse-Platz 1 81829 Munich Germany Phone + 49 89 92793 – 0 Fax + 49 89 92793 – 5200 investorrelations@nemetschek.com www.nemetschek.com