Interim report January 1 – March 31, 2011

Positive signals despite lower ACV
Sales remain steady and strong and in Q1 matched the average level of the past few years.

The Orc Financial Technologies and CameronTec segments showed continued solid profitability during the quarter.

The annualized contract value (ACV) fell by SEK 10m, excluding foreign exchange effects, compared to Q4 2010.

• The annualized contract value (ACV) at the end of Q1 2011 was SEK 648.5m (653.3), a decrease of SEK 4.8m, or 1%, compared to Q1 2010.
• The net transaction volume was SEK 26.6m (-) and the transaction margin was 40% (-) for Q1 2011.
• In the year-end report for 2010 our assessment was that Orc was well on its way to meeting the target for 2012 – a minimum operating margin of 20% in a weak market. Given the current exchange rates and low transaction volumes for Neonet, it is uncertain whether this can be achieved already in 2012.

January – March 2011

• Operating revenue of SEK 247.7m (170.4)
• Revenue growth of 45%
• Operating income of SEK 30.6m (27.2)
• Operating margin of 12% (16)
• Income after tax of SEK 21.8m (18.9)
• Basic earnings per share of SEK 0.93 (1.22)

The Neonet Group is consolidated as of April 1, 2010. The actual transaction date was April 7.

CEO Thomas Bill comments:
We have seen several positive signals during the quarter. Both sales and the potential order value of ongoing customer negotiations are holding steady at a good level. Among other things, we have closed a number of market making deals in the USA and are noting powerful demand for our solutions for structured products. In the past quarter we also signed a major contract with a Russian customer and closed our first deal for Orc Financial Technologies in Brazil.

Despite this, the level of churn in the first three months of the year remained high, which in the past quarter is mainly due to a single large customer that changed to another solution from Orc. The generally high churn is above all a result of less favorable market conditions in certain of the segments where Orc is active. Continued weakening of the US dollar and the euro is also affecting us negatively. Since the end of Q2 2010 our ACV has decreased by SEK 86m solely through appreciation of the krona.

It is satisfying to see continued strong development for CameronTec and rising demand for CameronTec’s solutions, not least in new geographical markets like Brazil and Central Europe.

For Neonet, low activity on the global exchanges has been a challenge and although the company has won many new customers, overall volumes are down compared to the previous quarter. However, it is positive that Neonet reported its highest transaction margin in a long time.

As we look at Orc’s development in the past quarter I would also like to point out the solid profitability shown by our operations in Orc Financial Technologies and CameronTec.

In the year-end report for 2010 our assessment was that Orc was well on its way to meeting the target for 2012 – a minimum operating margin of 20% in a weak market. Given the current exchange rates and low transaction volumes for Neonet, it is uncertain whether this can be achieved already in 2012.

About Orc Software
Orc is a leading provider of technology and services for the global financial industry. Orc delivers trading and market access solutions that are used by proprietary trading and market making firms, investment banks, hedge funds and brokerage houses worldwide.

Available as deployed software or as managed services, Orc develops and markets the tools needed to run profitable trading or brokerage businesses in today’s competitive and ever-changing markets.

Built on Orc’s depth of knowledge of the trading world, the Orc Trading and Orc Brokerage solutions offer strong analytics, unmatched market access, high-frequency trading capabilities, automated trading strategies, ultra-low latency and effective risk management.

Complementing the Orc Group’s trading technology solutions, our Neonet business unit offers low-latency brokerage services to professional market participants, with customers in over 25 countries globally. CameronTec, an Orc Group company, is the market leader in FIX infrastructure and connectivity solutions.

With market presence in all major global financial centers, Orc provides sales and support services from its offices across the EMEA, Americas and Asia-Pacific regions.

Orc Software is publicly traded on NASDAQ OMX Stockholm (SSE: ORC).

For more information visit www.orcsoftware.com.

Contact Information
CEO Thomas Bill, phone: +46 8 506 477 35
CFO Anders Berg, phone: +46 8 506 477 24

The information in this year-end report has been made public by Orc Software AB in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on April 14, 2011 at 8.00 a.m. (CEST).

N.B. The English text is a translation of the Swedish text. In case of discrepancy between the Swedish and the English text the Swedish version shall prevail.