PSI with Increased Sales and Positive Result in Third Quarter

- Sales in third quarter climb by 8% to 29.6 million euros
- Group generates 0.4 million euro EBIT and positive consolidated result
- New orders for year reach 100 million euros

Berlin, 2 November 2006 - In the third quarter of 2006, the PSI Group had an EBIT of 413 thousand euros (Q3-2005: 22 thousand euros) and a balanced consolidated result of 11 thousand euros (Q3-2005: -244 thousand euros). Sales for the third quarter increased by 8% to 29.6 million euros (Q3-2005: 27.5 million euros). With the strong third quarter the Group’s sales increased slightly in the first nine months of the year to 86.1 million euros (2005: 84.7 million euros). With 15 thousand euros (2005: 0.1 million euros) the EBIT for the first nine months was below the previous year as was the Group result with -0.9 million euros (2005: -0.5 million euros). The new orders in the third quarter increased compared to the previous year by 27% to 28 million euros (Q3-2005: 22 million euros), for the first nine months the new orders also increased by 27% to 100 million euros (2005: 79 million euros).

In Network Management (Energy, Telecommunication, Transport) sales increased by 8% to 50.4 million euros (2005: 46.6 million euros) in the first nine months. The EBIT improved to 1.3 million euros (2005: 1.2 million euros). In Energy, the establishment of international sales and partnership structures continued to move forward.

Production Management (Industry, Logistics) had sales of 32.8 million euros (2005: 33.1 million euros) in the first nine months. With 0.2 million euros the EBIT, which had been negative in the first six months, turned positive. As a result of the advance work invested in international projects in the first half year, it was still below the figure for last year (0.6 million euros). PSIPENTA GmbH had a clearly positive result in the third quarter and therefore contributed to the improvement of the result fort he entire segment.
Information Management (Authorities, Service Providers) had sales of 2.9 million euros (2005: 5.0 million euros) in the first nine months, the EBIT improved to -1.2 million euros (2005: -1.6 million euros) compared to the previous year. This segment has been revitalized by the new orders since the middle of the third quarter, whereby the result in the third quarter had already improved over the first two quarters of the year. The Executive Board expects the positive trend to continue in the coming quarters. In the course of reorganizing Information Management the e-Government- and IT consulting activities were placed in a newly-founded, wholly-owned subsidiary EITC European IT Consultancy GmbH on 1 October 2006.

Liquidity decreased on 30 September 2006 as a result of the expansion of the working capital in the high-export business units to 9.3 million euros (30 September 2005: 14.9 million euros). The number of employees remained almost constant at 1,046 (30 September 2005: 1,047), whereby with the complete takeover of PSI CNI and the expansion of sites in China and Poland, there were structural shifts toward the export business.

As in the previous years, management expects a very strong fourth quarter with additional increases in sales and profits. The order backlog of 81 million euros (30. September 2005: 67 million euros) represents a very good basis for achieving this goal.

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, machinery, plant construction, automotive, logistics) and information management for government and service providers. PSI was founded in 1969 and employs more than 1,000 persons in the group.