PSI with Sales and EBIT Increases in the First Nine Months

• Group net result increases by 237 percent to 2.8 million euros
• Sales increase by 5 percent to 92.0 million euros
• Order book volume increases by 24 percent to record value of 105 million euros

Berlin, 28 October 2008 – The PSI Group increased its EBIT to 4.2 million euros (30 Sept. 2007: 2.6 million euros). The pre-tax profit increased to 3.4 million euros (30 Sept. 2007: 1.7 million euros), the Group net result to 2.8 million euros (30 Sept. 2007: 0.8 million euros). Group sales increased to 92.0 million euros (30 Sept. 2007: 87.7 million euros). Adjusted for the sale of the government business in mid-2007 and the acquisition of F/L/S GmbH and the 4Production AG in the second and third quarters of 2008 the sales grew by just under 8 percent compared to the same period for the previous year. The volume of new orders increased by 16 percent to 119 million euros (30 Sept. 2007: 103 million euros), the order book volume increased by 24 percent to 105 million euros (30 Sept. 2007: 85 million euros).

The Energy Management segment (electricity, gas, oil, heat) obtained sales of 39.3 million euros (30 Sept. 2007: 38.2 million euros). The EBIT was increased by 59 percent to 2.5 million euros (30 Sept. 2007: 1.6 million euros). In the German-speaking market PSI was awarded numerous important contracts from large electricity and gas suppliers. In the field of electrical energy an important pilot contract for a Russian high-voltage grid region was obtained. In the coming quarters PSI expects additional important contracts from domestic and export markets in this segment.

Sales in the Production Management segment (industry, logistics) were, with 41.9 million euros, 12 percent above that of the level for the previous year (30 Sept. 2007: 37.5 million euros). The EBIT doubled compared to the previous year by 1.7 million euros (30 Sept. 2007: 0,8 million euros). Here, the Metals unit could further expand its market position with important international orders and the integration of the 4Production AG. The areas of logistics and mechanical engineering also profited from increased investments in the efficiency of industrial added-value processes.

In Infrastructure Management (traffic, safety, telecommunications) sales decreased as a result of the lower hardware portion and the sale of the government business to 10.8 million euros (30 Sept. 2007: 12,0 million euros). The EBIT was, with 0.2 million euros slightly below the value of the previous year (30 Sept. 2007: 0.5 million euros, including 0.8 million euros for the sale of the government business).

The number of employees increased as of 30 Sept. 2008 to 1,109 (30 Sept. 2007: 1,014) as a result of the acquisitions and targeted recruitment with an emphasis on export. Liquid funds on 30 Sept. 2008 were, with 21.6 million euros above the value of the previous year (30 Sept. 2007: 18.3 million euros). The cash-flow from operating activities improved to 2.7 million euros (30 Sept. 2007: 2.4 million euros).

PSI records growing efficiency investments of the heavy industry and the energy sector in Germany and export markets. As a consequence of the continuing concentration on the growing economies in Eastern Europe and Asia, PSI is profiting from the continuing investments in the improvement of national and industrial infrastructure in these countries.

The long-term cost-reduction program for platform convergence and the rightsourcing will continue to improve the margin. With the record order book volume of 105 million euros and the well-filled sales pipeline PSI foresees a continuation of the good business in 2009 and beyond. The management reiterates the annual targets of about 130 million euros in sales and about 6 million euros for the EBIT and the cash-flow from operations. A decision about increasing the budgeted EBIT for 2009 will be made in the course of November 2008.

PSI AG develops and integrates individual solutions, on the basis of its own software, for the management of energy networks (electricity, gas, oil, heat, water), cross-company production management (steel, mechanical engineering, automotive, logistics) and infrastructure management for telecommunications, transport and safety. PSI was founded in 1969 and currently employs 1,100 persons in the group.