Pricer implements an extensive acrion program

pricer implements an extensive action program The board of directors of Pricer has resolved to carry out an extensive action program designed to adapt its business operations more distinctly to the needs of the market and customers, and to create the prerequisites needed for growth and profitability. The adopted program consists of measures concerning both income and costs. The measures adopted by the board of directors are as follows: Strengthening of Sales and Marketing Activities Pricer shall to a greater extent manage the marketing and sales of the Company's ESL (Electronic Shelf Labels) products to end-customers. As a consequence the current partner strategy will be reorganized in certain markets, and be supplemented with own sales activities in the Nordic Region and in France, as well as towards large international customers. The partnership collaboration with Ishida in Japan, which recently placed an important order, will be strengthened and further developed. Collaboration with Pricer's largest customer, Metro, will be further activated and grow in line with the implementation of the German retail chain's new business concept, where Pricer's ESL solutions are expected to be included as an integrated part. Broadening of the Income Base In addition to selling and installing ESL systems, Pricer shall build a continuous income flow through a considerably stronger orientation towards after-sales services such as maintenance, accessories and upgrading of software to existing customers. Income currently consists to 95 percent of hardware sales. The objective is that ongoing deliveries of new and supplementary services and products in the after- market shall represent a considerably larger share in the future. This total concept will contribute to the creation of long-term and closer customer contacts, and the reduction of sales costs. Cost Reductions A thorough reconstruction of operations shall be carried out with the aim of reducing costs on an annual basis from approximately MSEK 80 to approximately MSEK 40-45. In conjunction with this objective, notice has been submitted to the County Employment Board involving approximately fifteen employees. The Company has commenced negotiations with the trade unions concerned. It is the Company's intention, in collaboration with recruitment agencies, to actively support the concerned personnel in their efforts to find new employment outside Pricer. A general reduction of other costs as well as strict cost-control measures shall enable the set savings goal to be achieved. Some functions of Pricer´s current operations will be placed outside the Company (outsourced) with the objective of reducing fixed costs. Pricer's reorganization and rationalization program will be implemented immediately and is expected to be completed during the first quarter 2002. A positive effect of the implemented measures is forecasted to be seen during the second half-year 2002. In addition to the publicly announced action program, Pricer intends to present in the near future a long-term plan concerning the financing of the Company's operations. For further information, please contact: Göran Lindén, Chairman of the board or Jan Forssjö, President and CEO, Pricer AB +46 18 188 100 Pricer AB (publ) was founded in 1991 in Uppsala and has built a leading position in the world market as a supplier of electronic display and information systems to the retail industry. Pricer offers electronic information systems intended to improve significantly customer benefit and improve retail profitability. Through Pricer´s co-operation with highly competent partners, customers are offered a totally integrated solution together with the supplementary products, applications and services offered by our partners. The Pricer share is quoted on the O- list of Stockholm Exchange. For further information, please visit Pricer´s website www.pricer.se . Registration to receive news releases automatically via e-mail can be made through the website. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/11/23/20011123BIT00180/bit0001.doc http://www.waymaker.net/bitonline/2001/11/23/20011123BIT00180/bit0001.pdf