BasWare - Company Announcement

Basware strategy update for 2010-2012

Strategy update: Interesting new opportunities in the market  -  new
offerings and long term targets.

Basware Corporation stock exchange release, November 17, 2009 at
09:20

Basware has updated its strategy for 2010-2012. The Basware
Responsive Strategy framework allows the company to act with agility
and sensitivity based on the company's situation, market trends and
other changes. The Responsive Strategy framework includes follow-up
and analysis of internal and external trends as well as the company's
vision, mission and operating principles. Basware's operating
principles comprise of the company's values, corporate governance and
responsibility.

Objectives - Global leader in Invoice automation, Procurement and
e-invoicing

The company aims at maintaining its position as a leading global
supplier of invoice automation and procurement solutions.  Invoice
automation growth is strongly supported by a new mid-market SaaS
(Software as a Service) "pay as you go" -offering to selected high
potential markets.

Basware aims also to become a leading company in e-invoicing
worldwide. E-invoicing and supporting Connectivity Services are now
targeted to connect suppliers and buyers also outside of Basware's
existing software customer base leading into a higher potential.

The company's long-term target is to grow annually more than 50% in
SaaS, Connectivity Services and e-invoicing. SaaS, Connectivity
Services and e-invoicing are scalable models and offer an increasing
profit potential in the long run.  The company's long-term target is
to grow annually more than 10% in License Sales, Maintenance and
Professional Services. The target for operating profit margin is
between 10% - 20%.

Geographical growth

The regional focus for Basware remains unchanged with following
adjustments. All regions will have a centralized organization for
increased efficiency during this strategy period. In all regions the
high growth of e-invoicing is supported with a wide range of
connectivity activities.

The North American segment is strategically the most important, and
the company focuses mainly on direct sales development in this
market. As new focus areas in the North American market, the company
will target several new industry segments. For mid market Invoice
automation growth a new SaaS "pay as you go"-  offering is
introduced.

In Central Europe, the UK, Germany and France will continue as the
strategic growth markets.  Medium-sized businesses are approached
also with SaaS with a new "pay as you go" -offering.

The Northeast segment, covering the functions in Finland and Russia,
will focus on Russia in terms of growth. Finland will maintain a
solid position in the company's business with high profitability.

In the Scandinavia segment (Sweden, Norway, Denmark), profitable
business growth will continue. Services offered to the current
customer base will be reinforced in both the Scandinavia and
Northeast segments.

In the Asia-Pacific segment, growth will focus on developed market
areas in the short term, such as Australia, and also other markets in
the area in the longer term.

During the next few years, the company will reinforce its direct
sales operations and develop its partnership network towards a few
strong partnerships.

Basware will continue expanding its Indian unit, which will improve
the scalability, flexibility and efficiency of product development,
for instance, and balance costs.  During the next two years, the
number of personnel (including product development and other
functions) is expected to more than double.


Business operations

Basware's business operations consist of License Sales, Maintenance,
Professional Services and Automation Services (e-invoicing,
Connectivity Services and SaaS).  They comprise of the Basware
Enterprise Purchase to Pay (EPP) product family and financial
administration products.

Basware has further expanded its Automation Services offering with
additional functionalities in, e.g., e-invoice service, supplier
management and scan and capture services.  Automation Services
solutions are used in all market areas. The purpose is to increase
the automation rate of customers' functions and improve transparency
and predictability of profitability throughout the purchase to pay
process.  Basware is one of the key drivers in transformation of
purchase and invoice messages to fully electronic processing.

According to Basware, internal processing of paper invoices in
companies will become obsolete. In practice, from the customer's
point of view this means that customer companies are able to
outsource and automate functions that they have previously performed
in-house.

The company's target customer group will be expanded in selected
markets by productizing the offering to better serve the small and
medium-sized customers with the SaaS distribution model.


Business acquisitions

The company continues to actively screen potential acquisition
targets. These include the strategic segments and the expansion of
Automation Services in particular.


The strategy presentation is available for download at Basware's Web
site at:
http://www.basware.com/Investors/financials/presentations/Pages/default.aspx


For more information, please contact
Ilkka Sihvo, CEO, tel. +358 9 8791 7251 or +358 40 501 8251
Olli Hyppänen, SVP, Strategy & Development, tel. +358 40 725 5816

Distribution:
NASDAQ OMX Helsinki
Key media
www.basware.com