Business Objects Completes Acquisition of Armstrong Laing Limited

Acquisition Adds Leading Profitability Management and Activity Based Costing Solutions to Business Objects Enterprise Performance Management Portfolio

SAN JOSE, Calif. and PARIS - Oct. 2, 2006 - Business Objects (Nasdaq: BOBJ; Euronext Paris ISIN code: FR0004026250 - BOB), the world's leading provider of business intelligence (BI) solutions, today announced it has closed the acquisition of privately-held Armstrong Laing Limited (ALG Software), a leading provider of profitability management and activity based costing solutions.

"The acquisition of ALG Software demonstrates our commitment to bringing a complete range of enterprise performance management solutions to our customers," said John Schwarz, CEO of Business Objects. "Our customers have told us that the ability to generate improved profitability and control costs is fast becoming one of their top priorities. By adding the leading provider of these solutions to our portfolio, we significantly broaden and deepen our EPM capabilities for our customers, and particularly, for the CFO and finance departments."

The acquisition was an all-cash transaction of approximately £30 million GBP (approximately $56 million USD) for all outstanding shares of ALG Software by Business Objects (U.K.) Limited, a Business Objects wholly owned U.K. subsidiary, and will be accounted for under the purchase method of accounting. Total revenue for ALG Software was approximately $19 million for its fiscal year ended January 31, 2006.

With the addition of ALG Software, Business Objects expands its enterprise performance management (EPM) software portfolio with solutions for profitability management, activity based costing, predictive planning, and strategic business performance measurement. ALG Software's profitability management and activity based costing solutions represent a fast-growing segment of the EPM market and complement the existing Business Objects EPM solutions. Today, more than 400 customers worldwide use ALG Software's solutions, including American Express, British Airways, British Telecom, Heineken, HSBC, Royal Bank of Scotland, US Department of Labor, and WHSmith.

Business Objects plans to announce further details on the integration of ALG Software in November, from the Business Objects Insight Americas 2006 User Conference in San Francisco.

Forward Looking Statements
This document contains forward-looking statements that involve risks and uncertainties concerning Business Objects' products and services, ALG Software's EPM solutions, the benefits to customers from the acquisition, Business Objects' position in the EPM market, and impact of the transaction on Business Objects' financial results. Actual events or results may differ materially from those described in this document due to a number of risks and uncertainties. The potential risks and uncertainties include, among others: the tax impact of the acquisition on Business Objects, Business Objects' ability to retain ALG Software's employees, and Business Objects' ability to realize other financial benefits from the proposed acquisition. More information about potential factors that could affect Business Objects' business and financial results is included in Business Objects' Form 10-Q for the quarter ended June 30, 2006 and Business Objects Form 10-K for the year ended December 31, 2005, which are on file with the Securities and Exchange Commission (the "SEC") and available at the SEC's website at www.sec.gov. Business Objects is not obligated to and does not undertake any obligation to update these forward-looking statements to reflect events or circumstances after the date of this document.

About Business Objects, an SAP company

Business Objects has been a pioneer in business intelligence (BI) since the dawn of the category. Today, as the world's leading BI software company, Business Objects transforms the way the world works through intelligent information. The company helps illuminate understanding and decision-making at more than 46,000 organizations around the globe. Through a combination of innovative technology, global consulting and education services, and the industry's strongest and most diverse partner network, Business Objects enables companies of all sizes to make transformative business decisions based on intelligent, accurate, and timely information.

Business Objects has dual headquarters in San Jose, Calif., and Paris, France. The company's stock is traded on both the Nasdaq (BOBJ) and Euronext Paris (ISIN: FR0004026250 - BOB) stock exchanges. More information about Business Objects can be found at www.businessobjects.com.

Business Objects and the Business Objects logo, BusinessObjects and Crystal Reports are trademarks or registered trademarks of Business Objects in the United States and/or other countries. All other names mentioned herein may be trademarks of their respective owners.

###

The Business Objects logo, BusinessObjects, Crystal Reports, Intelligent Question, and Xcelsius are trademarks or registered trademarks of Business Objects in the United States and/or other countries. All other names mentioned herein may be trademarks of their respective owners.

More press releases