HEVERLEE, Belgium -- As from July the new international organization of Telindus [Euronext Brussels:TEL] will be fully operational. It assigns regional responsibilities as well as its centre of expertise to nominated members of the Group Executive Committee. This operation, in combination with a turnaround initiative in Germany, results in an increased non-recurring charge in the first half year.

Ronald Everaert, CEO of Telindus Group : “Aligning the corporate organization in synergy with FLAGSHIP 2006 was a natural step towards creating a more efficient and leaner company. The new organization, which is purely market oriented, brings our unique knowledge to our customers throughout the world and allows us to maximise currently unseen business and cost-saving opportunities, hidden within our organization.”

In the first quarter of this year, Telindus tackled the structural underperforming countries Italy and Switzerland with an organizational re-shuffle. With the appointment of a new Managing Director in Germany at the beginning of April 2004, this country is now also aligning swiftly with the group strategy. The MD’s market approach for Germany is to focus on growing profitable networking niches, Managed Network Services and Video Surveillance. Germany is expected to be profitable in Q4 2004 now that it is driven by a new management team and based on the first signs of stabilizing market conditions.

Ronald Everaert, CEO Telindus Group adds: “The cost-saving actions; the implementation of the new corporate organization and Germany’s turnaround initiatives will result in additional non-recurring costs of EUR 4 million. As I said earlier, improving the focus and efficiency of the group is still my top priority. Building a services driven company generating 4% to 5% operating margins by 2006 is our main objective.”

Telindus Group NV