Record strong 4th quarter 2008 with strong growth and high profit margin

PSI Group ASA delivers the best quarterly performance in the
company's history with very strong growth in turnover and profit as
well as record high profit margin and cash flow. Even deducted for
positive non-recurring items of NOK 11 million, the EBITDA margin
reached 18 percent in 4th quarter 2008. Compared to 4th quarter 2007
EBITDA increased by 133 percent before including the positive
non-recurring items. At the same time growth in turnover reached 70
percent from 4th quarter 2007. This confirms that PSI is experiencing
high demand and full speed into 2009.

Operating revenues in 4th quarter 2008 increased by 69.7 percent to
NOK 199.1 million (NOK 117.3 million) and operating revenues for 2008
was NOK 553.3 million (NOK 462.9 million).
Gross margin in 4th quarter 2008 was 55.8 percent (44.4 percent) and
for 2008 the gross margin was 50.5 percent (43.5 percent)
EBITDA in 4th quarter 2008 increased to NOK 46.8 million (NOK 15.4
million) including non-recurring items of NOK 11 million (NOK 3
million). The EBITDA margin in 4th quarter excluding non-recurring
items was 18.0 percent (10.6 percent). For 2008 the EBITDA was NOK
76.3 million (NOK 56.1 million) and the margin 13.8 percent (12.2
percent) including non-recurring items of NOK 11 million.
Pro forma turnover in 4th quarter 2008 increased by NOK 20.7 million
which is equivalent to 11.6 percent whilst pro forma EBITDA increased
by NOK 30.9 million which is equivalent to 194 percent. The pro forma
figures are based on consolidated figures from PSI Group and
CashGuard for 4th quarter 2007.
Positive cash flow from operations in 4th quarter increased to NOK
19.7 million (NOK 8.9 million) and was NOK 40.2 million (NOK 48.7
million) in 2008.

- It should be allowed to be very pleased with the profit margin we
achieve in 4th quarter in combination with the high growth in
turnover across the entire business. In the middle of the financial
crises PSI delivers the best quarter ever and with increased turnover
the profit margin also increases. This confirms the operational and
financial strength related to PSI's ability to achieve economies of
scale. At the same time the positive cash flow is substantial and
this enables us to attack and gain market shares in times like these.
In addition we know that several key agreements have been closed
recently ensuring a good start to 2009. In general the business
activity is strong within all business areas and despite the
difficult economic environment we envisage growth and good
profitability, says Jørgen Waaler CEO of PSI Group ASA.

In 4th quarter 2008 the Group generated operating revenues of NOK
199.1 million compared to NOK 117.3 million in the same period of
2007. For 2008 the company's operating revenues were NOK 553.3
million (NOK 462.9 million). The increase is mainly due to the merger
with CashGuard and gradually increasing revenues synergies between
the various business areas. The deployment rate for CashGuard systems
in Norway and Sweden has picked up considerably in 4th quarter at the
same time as the activity level within Cash Management CIT/ATM was
high this quarter.

EBITDA in 4th quarter 2008 totalled NOK 46.8 million (NOK 15.4
million) including non-recurring items of NOK 11 million related to
profit from the acquisition of Friström Innovasjon AB. EBITDA for the
full year 2008 was NOK 76.3 million (NOK 56.1 million) including
non-recurring items of NOK 11 million.

- 2008 has been an eventful year for PSI. Through the merger with
CashGuard PSI appears as the leading international technology company
for grocery and specialised trade as well as banks and security
companies. During 2008 a considerable optimisation of operations has
also been made following the merger with CashGuard. We are advancing
well with this and thus we are looking to puruse the large
international potential going forward, says Jørgen Waaler.

The Group's pro forma turnover in 4th quarter 2008 increased by NOK
20.7 million which is equivalent to a growth of 11.6 percent from
same period last year whilst pro forma EBITDA increased by NOK 30.9
million which is equivalent to a growth of 194 percent. The pro forma
figures are based on consolidated figures from PSI Group and
CashGuard in 4th quarter 2007. Profit after tax in 4th quarter 2008
amounted to NOK 19.9 million (NOK 3.8 million) and NOK 13.2 million
(NOK 35.7 million) for the full year. The Group's operating revenues
and profit are otherwise influenced by high internal revenues between
the business areas, which reduce the Group's consolidated revenues
and enhance the profit margins.

AT FULL SPEED WITH SEVERAL NEW CONTRACTS
Within Retail Solutions growth is reappearing with a high level of
activity and increasing deployment rate of CashGuard solutions.
During the quarter 600 CashGuard systems have been delivered to
Norway and Sweden compared to 485 in the same quarter last year.
Operating revenues within this business area increased to NOK 126.4
million (NOK 116.9 million) in 4th quarter 2008. EBITDA totalled NOK
10.7 million (NOK 13.6 million) after debiting non-recurring costs of
NOK 3 million.

- The activity level and turnover within Retail Solutions in 4th
quarter increased from same period last year and compared to the past
quarters. The demand and deployment rate related to CashGuard is high
and the turnover within this business area is increasing by 8 percent
per quarter. Moreover there is good level of activity in the market
and the company is working with several larger projects, says Jørgen
Waaler.

Less than a month ago PSI signed an exclusive agreement with yet
another large grocery chain in Norway. The framework agreement
regarding CashGuard lasts for a total of 2 years and has a potential
of up to 1900 systems. This is the largest single framework agreement
PSI has entered into during the past years. This agreement confirms
that the company's technological solutions are attractive also in a
difficult economic environment.

The deployment rates within Cash Management Retail are high both in
Norway and Sweden at the same time as deliveries have been made to
Germany, France, Spain and Kuwait. In this business area operating
revenues in the quarter was NOK 36.4 million with an EBITDA of NOK
6.9 million. Norway and Sweden are still the two dominant markets
within Cash Management Retail. With reappearing increase in the
activity level in Norway it is expected that the recently signed
framework agreement will lead to substantial deliveries in 2009 and
2010. There is a generally strong interest for CashGuard in the
grocery retail market and discussions are being held with several
players. The activity level in Sweden has picked up considerably
recently and ongoing deliveries are being made to a wide range of
customers. At the same time there is a considerable interest for
CashGuard's solutions in the international markets where sales and
marketing activities are increasing in several markets at the same
time as the company also is working with global customers. Successful
growth and internationalisation are key priorities.

Cash Management CIT/ATM experienced a historically strong quarter
resulting in high turnover and a very good profit. This coincides
with new and important agreements having been signed and the
acquisition of Friström Innovasjon AB in the 4th quarter of 2008
which ensures ownership to important technology and expertise.
Revenues for this business area amounted to NOK 72.4 million in 4th
quarter 2008 and EBITDA was NOK 30.9 million including non-recurring
revenues of NOK 11 million. Revenues from ongoing service agreements
are of increasing importance due to the partly strong growth in the
installed product base.

A range of deliveries has been made to customers in Europe during the
quarter at the same time as the company has entered into several
important contracts during 4th quarter 2008 and January 2009. The new
agreements comprise several individual deliveries to large banks and
global security companies. Among other, a delivery contract regarding
500 security cases, including an option of additional 500 security
cases, with delivery in 1st quarter 2009 has been signed with an
international security company. Also, in October the first contract
for 250 of SQS's new security cases was entered into on the British
market. SQS has already received numerous requests for the new
security cases, which eventually will be made available in several
markets.

- This confirms strong business activity moving into 2009 both within
Cash Management CIT/ATM and Cash Management Retail. At the same time
we again present increased turnover within Retail Solutions, caused
by, among other factors, increasing demand and installation rate in
connection with the roll-out of CashGuard solutions. On this
background PSI gains market shares as the preferred technology
partner to customers in industries which are still investing in good
technology solutions such as CashGuard and SQS, says Waaler.

STRONG CASHFLOW AND POSITIVE OUTLOOK
Positive cash flow from operations in the quarter amounted to NOK
19.7 million compared to NOK 8.9 million for the same period last
year. The cash flow from operations was NOK 40.2 million (NOK 48.7
million) in 2008. Net interest-bearing debt is reduced by NOK 12.8
million to NOK 216.2 million at the end of 2008.

- In addition to repaying debt and acquiring Friström Innovasjon,
substantial buy back of company shares have been made during the
quarter. This is possible due to the strong performance and solid
cash flow generated by the company, says Jørgen Waaler in PSI and
adds:

- So far the financial crises have only affected PSI's business to a
small extent. In the past, the company's markets have been resistant
to economic recessions, as investments in both grocery retail and the
security markets only to a small extent have been affected by
financial and economic cycles in the past. Yet it is expected that
the financial crises could affect the company and create more
uncertainty going forward.  For 2009 continued growth in turnover in
combination with a good financial performance is expected, concludes
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.