SDL plc (“SDL” or “the Group”), the world’s leading provider of global information management (GIM) solutions, is pleased to announce its unaudited interim results for the six months ended 30 June 2006.

Financial Highlights:

Operational Highlights:

• Record revenue and profits, ahead of market expectations
• New enterprise customer agreements with AGCO, Dell and FedEx
• Desktop software market share increased to over 90% of translation industries’ professionals, with over 130,000 installations
• Successful integration of Trados
• Knowledge-based Translation Solution customer wins include HP, Computer Associates and Microsoft

Mark Lancaster, Chief Executive and Chairman, said,

“The first half of the year has seen strong growth for SDL.  The integration of Trados and its technology into SDL has already proved successful in delivering Global Information Management solutions for major global corporations, as well as leading to a considerable improvement in gross margins for the group.

We expect to see continued strong financial returns from our investment in Global Information Management, both from the services and the technology sides of the business. We anticipate that the adoption of enterprise technology will increase as we introduce new platform technologies into the market place and the larger corporations continue to evolve their global content strategies. The understanding and awareness of Global Information Management continues to be the number one challenge to the growth of our business. However both our research and that of third parties emphasises that Global Information Management is becoming increasingly important as corporations continue to globalize. Accordingly we expect the company to show continued growth in both profits and revenue.”

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Background information