The Board of Directors today announced that Powel ASA has decided to write off intangible assets related to the company’s investments in North America totaling MNOK 35,7 after taxes (MNOK 40,8 before tax).  In addition it was decided to offset MNOK 10 relating to the costs of restructuring the company.

The write offs were made as a consequence of the negative results and restructuring to turn-around the organization.  A new management organization and a clear strategy for future growth to position the company as a market leader in the Nordic market have been put in place. In addition to a reduction in staff, the company expects to deliver a positive result before tax for 2008.

Through 2007 the result in Powel Inc continued to be below budget, which as of 31.08 resulted in a loss of MNOK 10.  For this reason, Powel Inc contributes, for the most part, the negative result in the Powel group.  As part of the restructuring, Powel Inc has made a reduction in staff from 37 to 23, in addition to a change in leadership with the resignation of Corey Maple, CEO.  Powel Inc will focus on selling a reduced product portfolio, consolidation and profitable operations. As a consequence of this, the BoD has decided to write down all intangible assets related to the company.

In the Powel Group a new organizational model is now being introduced with a new management and stronger focus on sales, services, and efficient software development.  There will be an action plan to improve cost control, which also includes a reduction in staff of approximately 15 employees, in addition to the reduction of 20 employees so far this year.  Relative to this an allocation of MNOK 10 has been made for restructuring costs.  The costs will be allocated in the Q3/07 report.

The underlying operations are positive, and the expected minimum results for 2008 are 5% of the revenue before taxes.

Contact info:
President / CEO Bård Benum: +47 48 16 46 70
CFO Øystein Sæther: +47 48 16 45 58