New leadership at PSI

Berlin, 11 October 2002 – The Management Board of PSI AG is readjusting its annual projections for the financial year 2002 on the basis of developments over the course of the year and the continuing weakness in the economic environment. As a result of further setbacks in the already aggravated economy, PSI sales will decrease by 15% from the previous year. PSI expects an EBIT of –12 million euros including value adjustments, restructuring costs, and a critical evaluation of risk. PSI continues to maintain significant cash stock of 21.6 million euros and an order backlog of 114 million Euros as of 30 September 2002.


In the Network Management segment the number of employees rose by 71 to 526 as a result of positive business development and PSIs strong position in the market. Corresponding to market development, personnel adjustments were introduced last year in the Production Management segment which has suffered largely due to the postponement of important decision processes by customers and interested parties. As a result, since 1 January 2001 the segment has been downsized by 121 to 524 employees. Additional and accelerated personnel adjustments are planned for the future. In conjunction with these measures administrative costs will be reduced by 11%. Substantial restructuring costs are included in the>

Along with restructuring, PSI is initiating a sales and marketing offensive in the Production Management segment. Along with the Product business, PSI will shift the focus in this segment more towards supporting complex production processes with highly individualized elements and thereby also address the needs of specialized international industrial companies. With this intended mix of product and system business, one of PSIs USPs, this business field will be oriented more strongly towards the business models of the successful segments of PSI in the future. At the same time, the company will build on its leading position in Network Management.


Dietrich Jaeschke and Ali-Akbar Alizadeh-Saghati will resign from their positions on the Management Board earlier than expected on 30 November 2002. Both will continue to serve the company in a consulting capacity.


The new management will align the PSI portfolio consistently after earnings capacity.