SOFTBRANDS ACQUIRES GERMAN SOFTWARE PROVIDER INFRA BUSINESS SOLUTIONS

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SoftBrands, Inc. (OTC: SFBD), has acquired Infra Business Solutions, GmbH, privately held German software company that is a reseller and development partner of SAP Business One.

Through the newly acquired German operation, SoftBrands intends to introduce the Fourth Shift Edition for SAP Business One solution in the German market in 2006.

"The acquisition of Infra advances SoftBrands' strategy to serve small- to medium sized manufacturers that operate in the SAP environment," said Randy Tofteland, SoftBrands  President and Chief Operating Officer. "Infra provides SoftBrands an entry into the key German manufacturing market with a successful, profitable organisation that has extensive manufacturing expertise."

"This step with SoftBrands is good for our customers and channel partners, and provides a  wonderful opportunity to grow with the Fourth Shift Edition product in the German market,"  said Rainer Frantzen, Infra Business Solution's managing director. Frantzen, the former head  of consulting services at Infor AG in Germany, will continue to lead the business unit for  SoftBrands.

SoftBrands has partnered with SAP to develop Fourth Shift Edition for SAP Business One, which is currently offered in the United States, Canada and ASEAN markets, and soon to be available in the United Kingdom, Ireland and South Africa. Through this acquisition, SoftBrands is continuing to build its commitment to its partnership with SAP.

"This announcement significantly expands the global partnership between SAP and SoftBrands to serve small and midsize manufacturers in the key German market," said  Michael Schmitt, senior vice president, Small and Midsize Enterprises, SAP Germany. "With  Fourth Shift Edition for SAP Business One, German manufacturers will have an effective and competitive solution for managing their businesses."

Infra is based in Leonberg, Germany, in the suburban Stuttgart area. The company has  extensive manufacturing, consulting and support expertise in the small to medium enterprise  manufacturing segment. Its key product, Infra:Net, is a production planning system sold in the  German, Swiss and Austrian markets. Infra today serves approximately 380 active customers  and has 20 channel partners that provide sales, consulting and implementation services. Infra had annual revenues of more than $2 million in fiscal 2005.

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