Capital increase effective

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED IN IT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO OR FROM ANY JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF LOCAL APPLICABLE SECURITIES LAWS OR REGULATIONS.

For immediate release

SQS Software Quality Systems AG("SQS" or the "Company")

Capital increase effective

Further to its announcement on 8th November 2013 relating to the proposed acquisition of a majority of the issued share capital of Thinksoft Global Services Ltd, and the associated Placing, the Company is pleased to confirm that the capital increase required to implement the Placing has today been approved by the local competent German court and such share capital increase has accordingly been registered and become effective.

The Company expects that Admission of the Placing Shares will now take place on 25th November 2013.

Defined terms in this announcement shall have the same meaning as those set out in the Company's announcement of 8th November 2013.

Enquiries:

SQS Software Quality Systems AG +49 (2203) 91 54 0

Diederik Vos, Chief Executive Officer

René Gawron, Chief Financial Officer

Canaccord Genuity Limited (Nomad and Joint Broker) + 44 (0) 20 7523 8000

Corporate Finance: Simon Bridges / Peter Stewart / Cameron Duncan

ECM: Tim Redfern / Kit Stephenson

Westhouse Securities (Joint Broker) +44 (0) 20 7601 6100

Corporate Finance: Robert Finlay / Antonio Bossi

Corporate Broking: Henry Wilcocks / Richard Johnson

Walbrook PR Limited +44 (0) 20 7933 8780

Bob Huxford / Helen Westaway