Good quarterly performance and defined growth objectives following successful merger

PSI Group ASA delivers a good financial performance in the 2nd quarter following the concluded merger with CashGuard and defined objectives for international growth and success. PSI Group now appears as a new and leading international company within efficient handling and securing of cash - with two market leading technologies - and a very strong market position in Norway and Sweden. The financial figures for the 2nd quarter show that the new company is in high gear with a high level of activity.

- Operating revenues of NOK 135.2 million (NOK 133.5 million) in 2nd quarter and of NOK 233.2 million (NOK 253.8 million) in first half year
- EBITDA of NOK 11.3 million (NOK 16.3 million) in 2nd quarter and of NOK 16.8 million (NOK 30.4 million) in first half of the year
- The merger with CashGuard AB has been implemented in the financial statements with effect from 10 June 2008 and with final legal effect from 26 August 2008
- Concurrently PSI Group is listed on NASDAQ OMX in Stockholm from 26 August this year
- A considerable restructuring project is in progress in CashGuard AB focusing on cost reductions and increasing the efficiency of the international sales force

PSI Group's operating revenues amounted to NOK 135.2 million in the 2nd quarter with EBITDA of NOK 11.3 million after including CashGuard's operations in the financial statements from 10 June to 30 June this year. This represents an increase from the same period last year (NOK 133.5 million), which is especially strong compared to 1st quarter 2008 (NOK 98.1 million). At the same time the EBITDA is more than doubled from 1st quarter this year (NOK 5.6 million).

- This demonstrates that the conditions for further success and growth in the international markets are good in combination with a very solid business platform in the Scandinavian home markets, says Jørgen Waaler, CEO of PSI Group ASA, and adds:

- We are well satisfied with both revenues and profit in the 2nd quarter, taken into account that the merger was implemented in this quarter and that the same period last year was a record quarter for PSI. As a new company with European and international growth ambitions, we already see many synergies and defined benefits which are derived from a closer industrial, market and sales connection within the new Group. We have already come far in taking out synergies and identifying further potential for improvements, which alone is expected to yield annual savings of NOK 20-30 millions in the time to come.

PSI's profit is debited by NOK 7.8 million related to the ownership in CashGuard prior to the merger. This loss is to a strong degree affected by one-off expenses related to merger and restructuring costs. The merger with CashGuard AB is implemented in the financial accounts with effect from 10 June this year and was completed pursuant to company law on 26 August, the same day the PSI Group was listed on the Nasdaq OMX Nordic List in Stockholm.

In connection with the merger implementation it is decided to change the reporting on business areas such that the segment information better reflects the various fields of operations in the new Group; Retail Solutions, Cash Management Retail og Cash Management CIT/ATM.

A POSITIVE DRIVE WITHIN RETAIL SOLUTIONS
Within Retail Solutions, which represents the previous operations of PSI prior to the merger, a strong increase in both revenues and EBITDA from last quarter is demonstrated - especially in Sweden. This is due to a higher activity level within all parts of this business area. In the 2nd quarter of 2008, 406 CashGuard systems were delivered in Norway and Sweden.
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LARGE POTENTIAL WITHIN CASH MANAGEMENT RETAIL
Within Cash Management Retail, which comprises the previous operations of CashGuard, in the period from 10 June to 30 June large deliveries have been limited to Norway and Sweden.

In connection with the merger, this business area has been examined closely to take advantage of considerable cost synergies and to make the organisation more efficient and partner oriented in the international marketplace. The impact of this is expected to increase the profitability of the operations.

- Within Cash Management Retail there is a generally good activity level in both Norway and Sweden. Pending larger long-term deliveries in Norway, the Swedish operations demonstrate a high activity level with on-going deliveries to a wide range of customers. At the same time there is a considerable interest for CashGuard's solutions in the other global markets where we are represented. Several pilot installations have been made in France, Portugal and South Africa, whereas the pilot phase has been concluded in Spain and Germany. We strongly believe in the growth potential related to CashGuard and we will work hard to succeed in this business area, comments Jørgen Waaler i PSI Group.

HIGH LEVEL OF ACTIVITY WITHIN CASH MANAGEMENT CIT/ATM
Within Cash Management CIT/ATM, which includes SQS, the development is positive with a high level of activity and a good financial performance. On a global basis the market for securing cash in ATMs and securing cash in valuables transports is large and has considerable potential. In the 2nd quarter large deliveries have mainly been made in Mexico and Sweden. In addition, deliveries from this business area include the delivery of CashGuard Blue technology to CashGuard AB. There is a continuous and good influx of orders for SQS's closed systems for refilling ATMs with cash - and in addition a new and patented valuables transport unit is expected to be delivered for pilot installation at the end of 3rd quarter.

A POSITIVE OUTLOOK
The objective to become a leading international technology company with new and considerable market opportunities has been the PSI Group's vision these past years. This objective is now to a great extent achieved.

Cash Management Retail is in a build-up phase in several international markets. As the distinct market leader, the company appears well positioned to achieve a sales and market break-through outside Scandinavia. On the basis of the considerable cost reductions already implemented and the expectations of continuously increasing volumes, a considerable improvement in profitability is expected as the company moves forward.

Cash Management CIT/ATM is experiencing a considerable demand from existing and new customers and is expected to deliver a good financial performance ahead.

The market outlook within Retail Solutions is positive - especially within electronic shelf labelling and cash handling solutions. Efforts are being made to obtain more significant contracts which will also have an impact on Cash Management Retail.

For the year 2008, with CashGuard incorporated in the PSI Group from 10 June this year, it is expected that the revenues will total NOK 600-650 million with an EBITDA margin of 10-12 percent.

- Through the merger with CashGuard, PSI has become a new and international company - with ownership of technology and production facilities - something which will result in considerable benefits and which also is expected to result in a considerably improved competitive force and good margins, says Jørgen Waaler.

For additional information please contact:

Jørgen Waaler
CEO of PSI Group ASA
Phone +47 905 90 010

Facts about PSI Group
PSI Group is a leading global provider of closed cash handling solutions in the society and provider of retail technology for improving the efficiency of price, goods and consumer information in selected geographical areas.

PSI Group is head quartered in Rælingen (Norway) and employs around 360 staff in Scandinavia and Europe. The company is listed on the Oslo Stock Exchange and Nasdaq OMX in Stockholm.

For more information, see www.psi.no.