Sopheon PLC
30 November 2001
FOR IMMEDIATE RELEASE 30 November 2001
SOPHEON PLC
RATIONALISATION FOLLOWING MERGER WITH ORBITAL SOFTWARE
Sopheon plc ('Sopheon), the international knowledge management software and
services company, announced today that it is implementing its plans for
rationalising the enlarged group following its merger with Orbital Software
Holdings plc ('Orbital') being declared unconditional in all respects.
Outline details of proposed cost reductions were set out in the offer document
for the recommended merger.
Following a detailed review of the enlarged business, Sopheon is reducing the
number of employees by a total of just over 80, of which approximately 30 were
implemented in October and the rest today. The reductions, which include 6
individuals who will have transition roles through early 2002, will affect
both the Sopheon and Orbital businesses. Once transition has concluded, the
number employed within the existing Sopheon is expected to reduce by
approximately 50 and the number employed within Orbital is expected to reduce
by approximately 30. The one-off costs associated with this rationalisation
are currently estimated to be no more than £0.9 million, and will be provided
for within the results for the year to 31 December 2001.
Sopheon's Chairman, Barry Mence said:
'We are following through quickly on the promised cost reduction programme and
have received the full cooperation of Orbital's management. While it is with
regret that we are saying goodbye to former colleagues and friends, we will
start our new 2002 financial year with a sharply reduced combined cost base.
'As originally planned, the Edinburgh establishment becomes Sopheon's product
and service development centre within Europe.'
About Sopheon
Sopheon (LSE:SPE) is a leading international provider of software-based
solutions that enable organizations to more efficiently access internal and
external information and turn it into the knowledge to compete. Sopheon
serves nearly half of the technology-driven companies on the Fortune 500,
providing industry and process-specific software applications that are
pre-loaded with specialized content and access to human expertise. They
include the Web-enabled Accolade product development system and the
award-winning Teltech.com Web-based research portal for technical and business
professionals. Sopheon's European headquarters are in Guildford U.K., and its
U.S. headquarters are in Minneapolis. The company also has operating bases in
Germany and the Netherlands. Sopheon has recently declared its Offer for
Orbital Software Holdings plc unconditional in all respects. Sopheon's shares
are listed on the Alternative Investment Market of the London Stock Exchange
and on Euronext in the Netherlands. For more information, please visit
www.sopheon.com.
For further information contact :
Barry Mence, Chairman Sopheon plc Tel : + 44 (0) 1483-883000
Arif Karimjee, CFO Sopheon plc Tel : + 44 (0) 1483-883000
Steve Liebmann Buchanan Communications Tel : + 44 (0) 20-7466-5000
Barbara Jansen Citigate First Financial Tel : + 31 (0) 205-754-080
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