Largest Ever Contract Win

 30 November 2011

SQS Software Quality Systems AG

("SQS" or the "Company")

Largest Ever Contract Win

SQS Software Quality Systems AG (AIM: SQS.L), the world's largest pure play supplier of independent software testing and quality management services, is pleased to announce that it has signed a contract worth €20 million with a global financial services client.

SQS has signed its largest ever contract, worth €20m over the next two and a half years. The contract is to provide managed testing services to a global financial services client. Services will predominantly be provided onsite during the early stages of the contract, with an increasing proportion of the work moving to off-shore or near-shore centres as it matures. As part of the deal, up to 30 testing specialists currently employed by the client will be transferring to work under SQS.

Managed services order intake has now exceeded €62m in the year to date, with a number of smaller contracts and contract extensions having also been signed since the 2011 interim results were announced in September. Including this new win, managed services revenues now account for approximately 25% of total revenues and, as such, SQS remains in line to achieve its strategic goal of up to 50% of revenues within the next 3 years being derived through managed services contracts.

Rudolf van Megen, Chief Executive Officer of SQS, said: "We are delighted to announce this landmark contract win which gives further evidence of the success of our strategic move into the provision of managed services. In addition, the contract demonstrates our ability to compete for, and win, ever larger contracts, further enhancing the SQS brand and consolidating our position as the world's leading independent testing services provider. This contract greatly expands our relationship with the client and we look forward to working with them more closely in future."

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About SQS

SQS is the world's largest pure play supplier of independent software testing and quality management services. SQS consultants design and oversee quality management processes during the software and IT systems life cycle and test the resulting products for errors and omissions.

Headquartered in Cologne, Germany, SQS has approximately 2,000 employees across Europe, Asia, North America and Africa. The Group has a presence in Germany (Cologne, Munich, Frankfurt, Stuttgart, Goerlitz and Hamburg), the UK (London, Woking, Birmingham, Manchester, Belfast), Ireland, the Netherlands, Switzerland, Austria, Sweden, Norway, Finland, France, India, Egypt, the United States and South Africa. SQS also has a minor stake in an operation in Portugal and a partnership operation in Spain.

With more than 5,000 completed projects, SQS has a strong customer base including 20% of the FTSE-100 companies, more than half of the DAX 30 and a third of the STOXX-50. It supports clients in a wide range of industries, including major corporations such as Allianz, Beazley, BP, Centrica, Daimler, Deutsche Post, Generali, JP Morgan, Meteor, Reuters, SEB, Siemens and Volkswagen.