Utimaco Safeware Focuses on Profitable LOBs with Strong Growth

Self funded Future Growth Separation From Loss-making LOBs

Oberursel, 30th January 2002 – Utimaco Safeware, the IT security

specialist, took the decision to focus its resources on the LOBs

(lines of business) with the highest revenues and giving the best

prospect for success. These are Personal Device Security (PDS),

Digital Transaction Security (DTS) and the System House, which

provides customer-specific security solutions. PDS and the System

House are already profitable and DTS is expected to achieve

profitability shortly.

The two loss-making LOBs, Network Security and Security Modules, will

be shut down. The System House will take over the support and

maintenance of our customers for these LOBS and will take over

CryptoServer 2000 product and the network technologies as part of

customer projects.

Utimaco Safeware’s refocussing makes it possible for the company to

return to sustainable profitability, in the short term, and to

internally finance future growth.

As part of this focussed strategy, the number of employees will be

reduced by 20 % to 260. The extraordinary costs associated with this

action of approximately Euro 3.8 million will be accounted for in the

half-yearly balance sheet of 31st December 2001. Finance will be

provided by the financial package implemented in December 2001.

“Focussing our activities will enable us to expand our good market

position significantly in the areas of Personal Device Security and

Digital Transaction Security”, stated Bram van der Wal, Board Member

of Utimaco Safeware. “In these areas we provide an outstanding range

of technologies, products and references and foresee an enormous

potential market for ourselves. According to expert estimates only

around 3% of all laptops in companies currently use encryption. There

is also a huge demand for security solutions for small mobile devices

such as PDAs and smartphones. The same applies for E-mail Security

and Digital Signature, which are essential for eGovernment and B2B

business processes.”

“I am convinced that this refocussing accurately reflects the changed

market situation and means that the company is in an excellent

position to meet the demands of the future”, said Horst G?¶rtz,

company founder and director of the Horst G?¶rtz foundation, which,

with 24.5 %, is the largest individual shareholder in Utimaco

Safeware.

The company’s strategic reorganisation is being assisted by

consultancy from BlueChipBusiness Labs, Bad Homburg, Germany.

BlueChipBusiness Labs was founded by Konrad F. Reiss former CEO of

debis Systemhaus.

Utimaco Safeware AG is one of the major European technological

manufacturers of professional IT security solutions. The security

technology and solutions developed by Utimaco Safeware protect the

electronic data of companies and government bodies against

unauthorised access and guarantees that business processes and

administrative procedures in the electronic world are binding and

confidential.




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