Report from the Extraordinary General Meeting of Shareholders

Today's Extraordinary General Meeting of Shareholders of Orc Software resolved on the introduction of a stock options program and a new issue of 400,000 warrants, in accordance with the proposal of the Board of Directors.

The stock options program includes approximately 210 employees within Orc Software in Sweden and abroad. The program shall contribute to the possibility to recruit, maintain and motivate competent employees within the Group. Employees in Sweden are offered to acquire warrants at market price. Employees outside Sweden shall receive options free of charge under the precondition that they be employed at the time of subscription.

The stock options program shall run for a period of three years, and the warrants may be used for subscribing to shares in 2009. The subscription price for shares when utilizing the options shall amount to 120 percent of the volume-weighted average trading price for the Company's share on the Stockholm Stock Exchange during the period December 4 to December 15, 2006 inclusive.

The issue is estimated to imply a dilution of approximately 2.6 percent of the shares and voting rights in the Company. The issue may result in an increase of the share capital of the Company by not more than SEK 40,000.