1. ISTUG Update Bill Hill Marketing Director Enterprise Solutions Division

2. Agenda  Recent Financial Results  New Appointments  Channel Restructure  Going Vertical  Linux and IBM  Customer Focus

3. Financial Performance  Turnover increased by 14% to £551.7m  Pre-tax profit grew 11% to £135.2m  Over 200,000 new customers added (excluding Interact), bringing the total to 3.0m up by 7%  Strong financial performance by Interact: operating margin of 14% on revenues of £54m  Share price increase 22% over last 3 months  Turnaround in Enterprise Division

4. New Appointments  New Managing Director Gavin May  New Head of Product Marketing Graham Cardwell

5. Channel Restructure  Channel restructure based on quality and quantity from 70 partners to : 7 Strategic Partners 3 Premier Business Partners 14 Business Partners 10 Accredited Resellers  Major investment in Training and Accreditation

6. The Ideal Vertical Market Solution  Sage Line 500 for Manufacturing  Sage Line 500 for Distribution  Sage Line 500 for Construction  Sage Line 500 for Services  Sage Line 500 for Public Sector and Not For Profit

7. Vertical Market Development  Objective : To increase the effectiveness of our business and application development by focussing on discrete market sectors where we have good credible competence and reference ability. Partner Business Plans Develop specific business plans for each of our to ten resellers. The plans will deliver the specific SIC codes that the partner can demonstrate significant domain knowledge and higher than average win ratio Create Centres of Expertise This will include bringing together our channel partners, our product specialists, industry consultants and our customers Acquisition Acquire complimentary software companies that are critical to the success of the vertical market programmes

8. Linux and IBM  Sage Line 500 on x-series, Windows, IDS, Oracle, SQL Server available for over 2 years  Sage Line 500 on p-series, AIX, IDS and Oracle available for over 2 years  Sage Line 500 on x-series,Linux and IDS available NOW on Early Adopter and GA 2003  Sage Line 500 on i-series, Linux and DB2 available NOW on Early Adopter and GA January 2003

9. Customer Focus  Customer Newsflashes - first issue sent December 5th Giving you regular information hot off the press  New Customer Newsletter - first issue out January 2003 Giving you a useful and informative medium to find out more about Sage  Customer Open Day - end of February 26th and 27th 2003 A chance for you, the customer, and Sage to get together To include: The long awaited Product Roadmap Information on the services available from Sage (such as PFS & CPD)  Dedicated Customer Area on Sage website - coming soon Central place to get the information relevant to you

10. Customer Focus  Sage currently offers 2 types of service (which includes Support, Account Management and Communications):  for Resellers  for Direct Customers  BUT… there is nothing currently in place for corporate customers dealing with the reseller channel  no formal procedure  no process for communication  We want to know how big an issue this is and what we should do about it ?

11. Any questions?