IDS Scheer AG Acquires Plaut International

To integrate consultancy's North American and Eastern European Business Units

To integrate consultancy's North American and Eastern European Business Units

Berwyn, PA — August 6, 2003 — IDS Scheer Inc., a provider of business process excellence services and tools, today announced that its corporate parent, IDS Scheer AG, has acquired the North American and Eastern European business units from Plaut International, a Salzburg, Austria-based IT consulting firm.

Established as a consultancy in 1946, Plaut operates in 16 countries internationally with over 1,500 consultants. According to IDS Scheer, the acquisition of Plaut will expand its consulting practice, targeting large corporations and mid-sized enterprises in a range of industries, including capital goods, consumer goods, retail and services.

As part of the acquisition, IDS Scheer AG said it would gain 400 mid- and large-sized customers in North America and Eastern Europe from Plaut, including Jim Walter Homes and Southwestern/Great American Inc. Plaut's Eastern European unit includes local subsidiaries in Austria, Hungary, Poland, Slovakia and the Czech Republic. Plaut's North American offices in the United States and Canada operate primarily as SAP consulting companies focused on large corporations and as SAP resellers in the SME (small to medium enterprise) market.

Through this transaction, IDS Scheer will also acquire 450 employees from Plaut.

The company anticipates revenue of approximately $86.2 million USD/75.0 million EUR from the two Plaut units for the entire fiscal year 2003. "Integrating the Plaut offering will bring us an expansion in our products and services, as well as a sharp increase in our market presence in Eastern Europe and North America," explained Dr. August-Wilhelm Scheer, founder and chairman of the Supervisory Board of IDS Scheer AG.

According to Dr. Ferri Abolhassan, co-chairman of the Executive Board of IDS Scheer, integration measures will follow a phased roll-out plan. This plan includes integration of employees, the consolidation of IT infrastructures, restructuring and marketing activities. Integration and restructuring has already begun and will be concluded and completely posted in the current fiscal year. "This acquisition steps up the expansion of our U.S. business. Both regionally and strategically, this is a perfect match for the IDS Scheer Group worldwide," he said.

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