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MEDIA RELEASE - STRATECH ANNOUNCES COST REDUCTION PLAN AS PART OF TURNAROUND STRATEGY
SINGAPORE, January 21, 2003 – Mainboard-listed, advanced IT systems and technology developer Stratech Systems Limited ("Stratech") has announced that it is in the process of implementing various measures as part of the Company's plan to lower its fixed-cost base in 2003. This exercise is in line with the Company's strategy to turn around and to steer the Company towards profitability.
The Company retained the services of Mr. Terence Ian Nickolls, a turnaround specialist, as Chief Executive Officer in July 2002 for a provisional period of up to 12 months to assist the Company in its strive to return to profitability and to craft its turnaround plans. Upon expiry of Mr. Nickoll's tenure, Mr. Tan Chee Peng, currently Deputy President, shall assume the role of Chief Executive Officer as planned. With the departure of Mr. Lim Hock Thye, Mr. Tan has also assumed the duties of Head of Operations, to among others, ensure the timeliness and quality delivery of Stratech's projects and will be in charge of the product and technology development. Mr. Tan carries with him more than 16 years of consulting experience and was a former managing partner of Andersen Worldwide and has had extensive experience in the advising of operations.
In addition to his current role of driving the company's vision and strategic directions in his capacity as Executive Chairman, Dr. David K.M. Chew will also directly oversee and drive the Marketing and Business Development functions. Dr. David Chew has overseen the business of the company since its inception in 1989 and has over 20 years of experience in the IT and advanced technologies industry. Mr. Timothy A. Stewart, previously Head of Business, has been reassigned to concentrate on various international opportunities and special projects, which the Company has been pursuing.
Mrs. Chew-Leong Sook Ching, Deputy Chairman - Finance, Corporate and Legal Affairs, has assumed the duties to manage the day-to-day operations of the Company. A former partner of a local law firm, Mrs. Chew has been managing legal, administrative and financial affairs since 1995 and continues to be in charge of corporate structure and strategy, policies and processes of the Company.
Dr. Kennedy Chew shall continue to drive Innovation and Alliances, to ensure the Company stays in the forefront of Technology and to increase the Company's coverage and global distribution network so as to improve the Company's sales. As the former Chief Architect of several national projects at the then National Computer Board, now known as Infocomm Development Authority of Singapore, Dr. Kennedy Chew has extensive experience in designing and implementing innovative technologies. Dr. Kennedy Chew's sound technical knowledge also puts him in an advantaged position to form strong global technology alliances and distribution networks.
The Company has also taken other measures to right-size and reduce its fixed costs. Barring unforeseen circumstances and based on current requirements*, the Company will achieve a reduction of about 30% to 35% of fixed costs in comparing the costs of April 2002 and April 2003. The streamlined management and organizational structure will result in increase in productivity without affecting core competencies, execution of contracts in hand, pursuit of new businesses and innovation.
*Based on requirements to deliver contracts in hand and does not take into account additional resources that may be required when the Company acquires new businesses.
About Stratech Systems Limited
Stratech Systems Limited (“Stratech”) is a fast growing advanced technology and e-Business developer. We deliver mega real-time mission critical systems in the areas of Computer Vision, intelligent Transport Systems and e-Government. Stratech brings together world-class expertise, software and resources to help its clients meet operational challenges and New Economy opportunities.
Formed in 1989, we have since established an impressive track record serving industries such as Transportation, Healthcare, Government, Defence, and Financial Services. Over the years, we are recognised as a technology expert and innovator, as we continuously develop and implement solutions that achieve significant business transformation and competitive advantage for its clients.
Listed on the Mainboard of the Singapore Stock Exchange, Stratech is headquartered in Singapore and also operates in Greater China (Hong Kong and China) and Australasia.
For more information, please contact:
Corporate Communications Division
Tel: +65 6799 6650
Fax: +65 6323 2177