Strong growth and good profit margins ensures best 1st quarter results ever



PSI Group ASA delivers the company's best 1st quarter results ever
with strong growth in turnover and profit. Compared with 1st quarter
2008 operating revenues increased by more than 50 percent to NOK
147.2 million, equivalent to as much as 19 percent pro forma growth
for the Group. At the same time EBITDA increased to NOK 16.9 million,
which resulted in significant consolidated growth in profit and
margins. PSI is experiencing high demand and good pace. During the
quarter several significant framework agreements related to CashGuard
both in Norway and Sweden have been signed. This is expected to have
positive impacts ahead in the form of a stable and increasing
delivery and deployment rate for cash handling solutions.

- Operating revenues in 1st quarter 2009 increased by 50.1 percent to
NOK 147.2 million (NOK 98.1 million).
- EBITDA in 1st quarter 2009 increased to NOK 16.9 million (NOK 5.6
million). The EBITDA margin in 1st quarter 2009 is 11.5 percent (5.7
percent)
- Pro forma operating revenues for the whole Group in 1st quarter
2009 increased by 19 percent from NOK 123.8 million to NOK 147.2
million, at the same time as pro forma EBITDA increased by NOK 26.4
million from NOK - 9.5 million to NOK 16.9 million in the quarter.
The pro forma figures are based on consolidated figures from PSI
Group and CashGuard in 1st quarter 2008.
- Cash flow from operations in 1st quarter is NOK - 9.1 million (NOK
10.0 million).

- This means PSI delivers another solid quarter which clearly
demonstrates our ability to combine profitability and growth.
Actually this is the best 1st quarter PSI has ever delivered and this
in a period with recession and a large uncertainty. Backed by solid
growth in turnover and profit we continue our dedicated efforts in
established and new markets in parallel with developing the Group's
leading product and solution portfolio further. We are experiencing a
generally good demand in most areas with prospects for continued
growth. Recently we have signed several agreements of great
importance, comprising two leading grocery chains in Norway as well
as large Swedish chains within grocery and specialised trade, among
others. This provides us with a very solid starting point with regard
to the rest of the year and our continued pursuit for profitable
growth, says Jørgen Waaler, Group CEO of PSI.

In 1st quarter 2009 the Group generated operating revenues of NOK
147.2 million, compared to NOK 98.1 million in the same period of
2008. The increase is, among other factors, due to the merger with
CashGuard and gradually increasing revenue synergies across the
various business areas. The Group's pro forma turnover in 1st quarter
2009 increased by NOK 23.4 million, which is equivalent to a growth
rate of as much as 19.0 percent from same period last year. Pro forma
EBITDA increased by NOK 26.4 million from NOK -9.5 million to NOK
16.9 million. The pro forma figures are based on consolidated figures
from PSI Group and CashGuard in 1st quarter 2008. EBITDA in 1st
quarter 2009 totalled NOK 16.9 million compared with NOK 5.6 million
in the same period last year. Profit after tax in 1st quarter 2009
amounted to NOK 5.5 million compared with NOK -4.5 million in the
same period last year.

Almost one year after the merger with CashGuard we see that the
objectives to a large extent have been realised in the form of
positive effects. We are still expecting positive results from the
optimisation and efficiency efforts implemented after the merger. The
cost base within all business areas has been significantly reduced
due to economies of scale and the fact that substantial synergies
have been realised across the business areas. As one example, the
breakeven level within Cash Management Retail has been divided by
two, mainly due to positive impacts from the merger and gross margin
improvement. In addition, operations have become very flexible and
scaleable, says Jørgen Waaler.

Cash flow from operations in the quarter amounted to NOK -9.1 million
compared to NOK 10.0 million in the same period last year. Net
interest-bearing debt at the end of the quarter amounted to NOK 224
million, which is equivalent to an increase of NOK 4.7 million from
the end of 2008.

- The cash flow is influenced by growth and high operational activity
at the end of the 1st and the beginning of the 2nd quarter. Moreover,
the company is in a build-up phase with regard to increasing the
deployment rate in the future, which will result in steadily
increasing and positive cash flows ahead, says Jørgen Waaler.

The deployment rate for CashGuard systems in Norway and Sweden in the
period was good, in addition there was a high level of activity
within Cash Management CIT/ATM, which resulted in a satisfactory
performance in the quarter within all the Group's business areas.

- It is important to bear in mind that our technological solutions
are leading, which have been confirmed again this quarter by three
out of the four largest grocery chains in Norway now having selected
CashGuard and PSI as partners. This gives a good description of our
leading position in Norway and internationally and we are dedicated
to develop this position further within all the Group's business
areas, says Jørgen Waaler.

The demand and delivery rate related to CashGuard is still good.
During the quarter 335 CashGuard systems were delivered in Norway and
Sweden compared to 278 in the same quarter last year.

SEVERAL FRAMEWORK AGREEMENTS ENSURES STRONG FORWARD MOMENTUM
The overall activity level and turnover within Retail Solutions are
still good, even though the company is experiencing a somewhat lower
demand within certain product groups. This is especially the case in
the Swedish market where turnover is also affected by a weaker
Swedish currency. The operating revenues in 1st quarter 2009 thus
fell from NOK 97.5 million to NOK 93.0 million whilst EBITDA ended at
NOK 4.6 million (NOK 7.3 million).

- The newly signed framework agreements are expected to have positive
impacts through higher activity and increasing deployment rate for
CashGuard ahead, which is expected to affect turnover and profit
positively both within Retail Solutions and Cash Management Retail.
At the same time recession has caused a doubling in number of
registered store and kiosk robberies compared with 1st quarter last
year. This trend supports the attractiveness and need for the Group's
technological solutions, says Jørgen Waaler.

The delivery rate within Cash Management Retail is good both in
Norway and Sweden and with new framework agreements in place,
significant deliveries are expected in 2009 and 2010. During the
quarter deliveries have also been made in Spain and Germany. Impacts
from cost synergies in combination with gross margin improvements
have played a particular role in ensuring good results within Cash
Management Retail where operating revenues in the quarter reached NOK
26.7 million and EBITDA NOK 3.5 million.

Norway and Sweden are still the two dominant markets within Cash
Management Retail. At the same time there is a considerable interest
for CashGuard's solutions in other international markets where the
sales and marketing activities are on the rise in several individual
markets. During the quarter Torgeir Abusdal has been appointed as new
director of international sales, with special focus on further
deployment of CashGuard in existing and new markets outside
Scandinavia.

Cash Management CIT/ATM delivered good results with very good margins
in the period. Operating revenues in 1st quarter 2009 reached NOK
50.0 million with EBITDA totalling NOK 10.4 million. Several
agreements of large importance with large global security companies,
announced at the end of last year and in 1st quarter this year
contributed strongly to the good results. Ongoing deliveries have
been made to customers in Scandinavia and the rest of Europe. In
addition several agreements with deliveries to international security
companies have been signed during the quarter.

POSITIVE OUTLOOK
- So far the recession has had limited impact on PSI's business. The
first quarter is normally the weakest in the year, at the same time
as a range of significant agreements have been signed, which from
experience materialises, to a high degree, in deliveries. On this
background we are expecting a general growth and good profitability
in the time ahead, concludes Jørgen Waaler of PSI Group.

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.

Attachments

2009 Q1.pdf