SQS Software Quality Systems AG 05 January 2006 SQS Software Quality Systems AG (the "Company") Director Shareholding The Company announces that Rudolf van Megen, a director of the Company, has previously entered into a binding commitment to transfer 81,347 ordinary shares of EUR 1 each in the Company ("Ordinary Shares") to employees for nil consideration pursuant to prior trust arrangements. The Company will make a further announcement in due course with the date when such transfer becomes effective. Following completion of this transfer, Mr Van Megen's interest will be 4,590,191 Ordinary Shares representing approximately 29.12 per cent. of the Company's current total issued ordinary share capital. The Company also announces that Heinz Bons, a director of the Company, has previously entered into a binding commitment to transfer 17,642 ordinary shares of EUR 1 each in the Company ("Ordinary Shares") to employees for nil consideration pursuant to prior trust arrangements. The Company will make a further announcement in due course with the date when such transfer becomes effective. Following completion of this transfer, Mr Bons' interest will be 4,242,570 Ordinary Shares representing approximately 26.91 per cent. of the Company's current total issued ordinary share capital. 5 January 2006 This information is provided by RNS The company news service from the London Stock Exchange