Highest Volume of New Orders at PSI in First Quarter in Last Five Years

Volume of orders increases to 81 million euros

Berlin, 2 May 2006 – The PSI Group increased its volume of new orders in the first quarter of 2006 by 31% to 42 million euros (Q1 2005: 32 million euros). The EBIT, at 8 TEUR, was once again balanced (Q1-2005: 0.2 million euros), sales were with 28.4 million euros at the same level as the previous year (Q1 2005: 28.4 million euros). The new orders in the areas of gas, electrical energy and heavy industry were especially positive, whereby the German market and exports contributed equally to the increase. The volume of orders increased by 11 million euros to 81 million euros compared to 31 December 2005. On 31 March the PSI Group employed 1,049 persons (31 March 2005: 1,065).

In the Network Management segment (energy, telecommunication, traffic), sales increased by 3% to 16.0 million euros (2005: 15.6 million euros) in the first three months. The EBIT improved to 0.4 million euros (2005: 0.3 million euros). In this segment the new orders increased in particular in the areas of gas/oil and electrical energy.

The segment Production Management (industry, logistics) increased sales by 4% to 11.4 million euros (2005: 11.0 million euros) in the first three months. The EBIT decreased slightly compared to the same period for the previous year to 0.2 million euros (2005: 0.3 million euros). This figure contains additional expenditures for the expansion of the export business.

In Information Management (government, service providers) sales decreased to 1.0 million euros (2005: 1.9 million euros) in the first three months, the EBITA was at –0.4 million euros (2004: –0.5 million euros). Compared with the previous year the number of employees in this segment has been reduced by 24%. PSI is negotiating with strategic investors for one individual activity of Information Management. The new environmental control station, which was developed on the basis of PSI energy control technology, proved itself in the recent flooding of the river Elbe so that increased requests for this can be expected.

The strong tendency of orders in the first quarter continued in April. With that the basis for sales and earnings increases has been established for the next quarters. In the last weeks the workload has increased significantly in all of the PSI business units.

PSI AG develops and integrates individual solutions, on the basis of its own software, for the management of large networks (electricity, gas, oil, telecommunications, transport), cross-company production management (steel, chemicals, machinery, automotive, logistics) and information management for government and service providers. PSI was founded in 1969 and employs 1,050 persons in the group.