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Thanksgiving 2008 Chicago, IL, 312-651-3000 http://www.spss.com Valuation # of Ests 7 7 7 7 2 5 P/E FYE 12/31/07 P/E FYE 12/31/08 P/E FYE 12/31/09 P/E FYE 12/31/10 EV / LTM revenue EV / LTM EBITDA EV / LTM EBIT 14.7x 12.8x 12.4x 12.7x 0.9x n/a 5.4x

SPSS (Nasdaq: SPSS)
Technology: Software & Programming, Member of S&P SmallCap 600 Trading Data Price: $24.30 (as of 11/14/08) 52-week range: $21.98 - $43.36 Market value: $441 million Enterprise value: $284 million Shares out: 18.1 million Ownership Data Insider ownership: 1% Insider buys (last six months): 0 Insider sales (last six months): 7 Institutional ownership: n/a # of institutional owners: n/a Consensus EPS Estimates Latest $0.45 0.48 1.90 1.96 1.92 Month Ago $0.56 0.50 1.92 2.11 2.13

This quarter Next quarter FYE 12/31/08 FYE 12/31/09 FYE 12/31/10

LT EPS growth 11.9% 11.9% Latest Quarterly EPS Surprise Date 11/4/08 Actual $0.55 Estimate $0.44

P / tangible book 3.4x Greenblatt Criteria LTM EBIT yield LTM pre-tax ROC 18% n/m

Operating Performance and Financial Position ($ millions, except per share data) Revenue Gross profit EBIT Net income Diluted EPS Cash from ops Capex Free cash flow Cash & investments Total current assets Intangible assets Total assets Short-term debt Total current liabilities Long-term debt Total liabilities Preferred stock Common equity EBIT/capital employed 12/31/01 174 153 (34) (26) (1.90) 14 33 (20) 31 119 92 252 1 93 0 119 0 133 -116% 12/31/02 209 185 (17) (17) (0.99) (1) 24 (25) 15 89 67 214 3 99 6 112 0 102 -75% Fiscal Years Ended 12/31/03 12/31/04 12/31/05 208 224 236 192 210 220 0 7 28 9 6 16 0.53 0.31 0.85 22 12 52 12 15 17 10 (2) 35 36 37 84 113 116 144 73 74 73 229 235 272 3 3 3 96 102 106 6 3 1 109 107 108 0 0 0 120 129 164 1% >100% n/m 12/31/06 262 243 34 15 0.73 48 17 31 140 207 77 333 0 114 0 116 0 217 n/m 12/31/07 291 273 50 34 1.65 85 19 66 307 376 80 501 0 139 150 292 0 209 n/m LTME 9/30/08 309 288 52 38 1.97 79 20 58 307 361 83 488 0 122 150 275 0 213 n/m FQE 9/30/07 72 68 13 8 0.41 17 5 12 297 358 80 488 0 119 150 270 0 218 n/m FQE 9/30/08 75 69 13 11 0.55 17 7 10 307 361 83 488 0 122 150 275 0 213 n/m

Ten-Year Stock Price Performance and Trading Volume Dynamics

$60 $50 $40 $30 $20 $10 $0 Jan 00 Jan 00 Jan 00 Jan 00 Oct 03 Oct 04 Oct 05 Oct 06 Oct 07 Oct 08

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Thanksgiving 2008

BUSINESS OVERVIEW
SPSS provides analytics software, with “predictive analytics” technology improving processes by providing “forward visibility” for business decisions. SPSS was founded in 1968.

SELECTED OPERATING DATA
FYE December 31 2005 2006 % of revenue by type: License 46% 48% Maintenance 43% 42% Services 11% 10% Revenue growth by type: License 12% 16% Maintenance 5% 7% Services -14% 4% Total revenue growth 5% 11% Selected items as % of revenue: EBIT 12% 13% D&A 7% 6% Capex -3% -2% Capitalized software -4% -5% % of revenue by geography: U.S. 44% 42% Europe 42% 43% Pacific Rim 15% 15% 2007 49% 41% 10% 15% 8% 5% 11% 17% 6% -2% -5% 41% 44% 15% YTD 9/30/08 47% 43% 10% 5% 13% 6% 8% 16% 7% -2% -5% 40% 44% 16%

Investors may under-appreciate underlying growth, as revenue has grown more slowly than license revenue. Consistent double-digit license growth reflects strong adoption of SCSS software. Stock price implies 13% trailing FCF yield, 12x trailing P/E and 12x forward P/E. “Very challenging economic times” and dollar appreciation have hurt YTD results. License sales in Europe and Japan have not met expectations. Sales in northern Europe have been affected by a lack of sales capacity, an issue the company is addressing. Primary worldwide competitor in each target market is the well-respected and larger SAS Institute (>$2 billion revenue). SPSS also competes against NCR, Fair Isaac and Oracle. Recently updated poison pill. The company has a shareholder rights plan in place that discourages the acquisition of more than 15% of SPSS shares without the company’s approval.
08 P/E 8x 10x 10x 11x 14x 13x 09 P/E 7x 9x 10x 10x 13x 12x

INVESTMENT RISKS & CONCERNS

INVESTMENT HIGHLIGHTS
• $3 billion market growing in low teens. SPSS targets advanced analytics ($1.5 billion, growing at 10%) and CRM analytic applications ($1.5 billion, growing at 13%). SPSS has less than 10% share. Predictive Analytics software improves processes by providing visibility for key decision makers and automating decisions to meet business goals. SCSS claims that Predictive Analytics ads significantly more value than business intelligence software. Customer list includes 95% of Fortune 1000, all major countries, all U.S. State governments, every branch of the U.S. Military, all top U.S. universities and 75% of top European universities. Steady margin improvement from 2004-07. SPSS achieved EBIT margins of 3% in 2004, 12% in 2005, 13% in 2006, and 17% in 2007. Repurchased $28 million of stock YTD and $72 million in 2007. Low-cost $150 million convert due 2012, with a conversion price of $47 per share and a fixed interest rate of 2.5%. Guiding for revenue growth of 4-6% and EPS growth of 15-20% in 2008, with expected revenue of $302-308 million, non-GAAP EPS of $1.90-1.98.

COMPARABLE PUBLIC COMPANY ANALYSIS
($mn) FIC MSFT MSTR ORCL SAP SPSS MV 650 178,445 422 87,110 41,890 441 EV 1,034 159,698 295 85,326 39,852 284 EV/Rev 1.4x 2.6x .8x 3.7x 2.8x .9x P/TB n/m 9.2x 3.7x n/m 119.0x 3.4x

MAJOR HOLDERS
CEO Noonan 3% │ Other insiders 2% │ T Rowe 11% │ Barclays 7% │ AXA 6% │ State Street 6% │ Brown 6% │ Ellington 6% │ Daruma 5%

• • • •

RATINGS
VALUE Intrinsic value materially higher than market value? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends? EXPLOSIVENESS 5%+ probability of 5x upside in one year?

THE BOTTOM LINE
SPSS is a compelling magic formula selection. The impressive client roster, including 95% of the Fortune 1000, highlights SPSS’s advantage in predictive analytics software. This niche market appears to have better long-term characteristics than most other software segments, which tend to undergo rapid change and attract vicious competition. SPSS’s primary competitor, the SAS Institute, has been a solid performer for many years, and we believe SPSS could achieve similar success.

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A Quarterly Publication of BeyondProxy LLC www.manualofideas.com Thanksgiving 2008

THE “MAGIC FORMULA” 100
► Joel Greenblatt’s winning investment approach – why it works ► Analysis of Top 100 companies passing “Magic Formula” screen ► Proprietary selection of Top 10 investment opportunities
Companies include Accenture, Acme Packet, Aladdin Knowledge, Allegheny, Ambassadors Group, American Eagle Outfitters, AmerisourceBergen, Bare Escentuals, Barrett Business Services, Biovail, Boeing, Broadridge Financial, BSQUARE, Cadence Design, CF Industries, Coach, CTC Media, Darling, Dell, Deluxe, DepoMed, Diamond Mgmt & Technology, DISH Network, Double-Take Software, Dynacq Healthcare, EarthLink, eBay, EMCOR, Emulex, First Advantage, Forest Labs, Foster Wheeler, Gannett, Garmin, Hansen Natural, Heidrick & Struggles, Herbalife, Herman Miller, Hurco, iBasis, ICF International, Iconix, infoGROUP, Jackson Hewitt, KBR, Kenexa, KHD Humboldt Wedag, King Pharma, Korn/Ferry, Lam Research, LCA-Vision, Lear, Lincare, Lorillard, Manitowoc, McGraw-Hill, Medicis Pharma, MEMC Electronic Materials, Meredith, Mesabi Trust, Microsoft, Monster, Mosaic, Net 1 Ueps, New Frontier Media, NutriSystem, NVIDIA, Pacer, Perini, Pre-Paid Legal, Precision Castparts, Premier Exhibitions, PRIMEDIA, Questcor Pharma, R.G. Barry, RadioShack, Robert Half, Rockwell Automation, Seagate, Sierra Wireless, Sigma Designs, Spark Networks, SPSS, Syneron Medical, Take-Two Interactive, Tempur-Pedic, TheStreet.com, Total System Services, Travelzoo, USA Mobility, VAALCO Energy, Value Line, ValueClick, Varian Semiconductor, Verigy, Versant, Viacom, ViroPharma, Western Digital, and more. Special Section, pages 4-259

Also inside: Proprietary Investment Idea Lists Top 10… best of the best companies with hidden assets superinvestor ideas tax-selling bargains stocks you’ve never heard of bargains in financial sector heavily shorted stocks Renaissance Technologies ideas foreign companies listed in U.S. or Canada branded businesses explosive stocks Top 10 ideas for… activist value investors deep value investors cash flow investors GARP investors special situation investors nano cap investors micro cap investors small cap investors mid cap investors large cap investors Portfolios With “Signal Value” Top ideas of top investors… Ackman Berkowitz Buffett Cumming & Steinberg Einhorn Greenberg Hawkins Icahn Klarman Lichtenstein Loeb Mandel Pabrai Pzena Lampert Hohn Watsa Whitman

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Thanksgiving 2008

About the MOI
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