Swisslog expects lower group operating result 2002 - Record-high order backlog

* Swisslog expects a lower group operating result (EBITDA)
for 2002 of between CHF 35 and 40 million (2001: CHF 63.4 million)
due to restructuring and one-off costs as well as a narrower profit
margin in the Material Flow Systems segment
* Ongoing cost-cutting program shows results and will be
expanded
* Debt reduction to be accelerated
* Order intake 2002 at CHF 1,028.2 million 1.7% higher than
previous year (increase in local currencies 6.2%)
* Order backlog at CHF 563.3 million (+5.1%) on record high
level
* Sales 2002 at CHF 948.6 million (+1.0%) slightly above
previous year's level (increase in local currencies 5.3%)
* Solid growth in the key strategic segments Supply Chain
Solutions and Software up by 15.7% to CHF 599.2 million in sales
and by 9.4% to
CHF 682.0 million in order intake; EBITDA of the Solutions and
Software segments expected significantly above previous year's
level

Buchs/Aarau, February 4, 2003. - Swisslog expects a group operating
result (EBITDA) for 2002 of CHF 35-40 million (2001: CHF 63.4
million). The decrease is primarily a result of restructuring costs
and one-off costs as well as lower profit margins, in particular in
the segment Material Flow Systems. For the key strategic segments
Supply Chain Solutions and Software a significant higher EBITDA is
expected. The group expands the existing cost-cutting program to
develop additional savings potential for the current year over and
above the already identified and partially realized CHF 40 million.
At the same time, Swisslog is focusing their efforts on ongoing debt
reduction. Swisslog will announce the final year-end figures on March
4, 2003.
Order backlog reached a new high at the end of 2002. At CHF 563.3
million (previous year: CHF 536.1 million) it was 5.1% over the
previous year's value. In local currencies, order backlog increased
by 13.1%. The key strategic segments Solutions and Software recorded
an increase in combined order backlog of 10.7%.
Group order intake grew by 1.7% to CHF 1,028.2 million (CHF 1,010.6
million). In local currencies, the order growth was noted at 6.2%.
Adjusted by the divested Color Logistics segment, order intake
increased by 4,2%. The combined order intake of the segments
Solutions and Software increased by 9.4% to
CHF 682.0 million (CHF 623.2 million). In local currencies, growth in
these two segments was reported at 14.6%. The combined order intake
of the segments Material Flow Systems and Robotic Systems was at CHF
413.3 million
(CHF 400.5 million) slightly higher the previous year's level
(+0.9%).
Swisslog group sales grew by 1.0% (+5.3% in local currencies) to
CHF 948.6 million (CHF 938.9 million). Sales growth without the Color
Logistics business amounted to 3.6%. Combined sales of the segments
Solutions and Software increased by 15.7% to CHF 599.2 million (CHF
518.1 million) while the combined sales of the segments Material Flow
Systems and Robotic Systems dropped by 11.1% to CHF 395.0 million
(CHF 444.1 million).

Group operating result (EBITDA) below previous year expected
The EBITDA in year 2002 was influenced by restructuring costs and
one-off costs, a narrower profit margin, particularly in the segment
Material Flow Systems, losses on individual projects in the Material
Flow Systems segment in one country in the fourth quarter as well as
a sharp decline in business in the Color Logistics unit divested at
the end of last year. Konrad Peter, Chairman of the Board of
Directors, states: "At the level of the group operating result
(EBITDA), 2002 was a bad year for Swisslog. Particularly in the
fourth quarter, the segment Material Flow Systems and the divested
color logistics unit delivered unexpectedly poor figures. This is the
reason why we have launched another cost-cutting program over and
above the previous one of CHF 40 million. In addition, the
accelerated reduction of the debt remains on top of the list of our
priorities. The continued growth in order intake and backlog as well
as the positive development of the key strategic segments Solutions
and Software indicate that Swisslog is operating successfully in a
difficult market and has a good foundation. We want to rapidly and
lastingly strengthen this foundation by introducing the above
mentioned steps."

Key strategic segments with solid growth
The key strategic segments Supply Chain Solutions and Software noted
solid growth again last year. The success of the Solutions segment in
a difficult economic environment is attributable to recurring orders
from existing customers, such as Wal-Mart and the acquisition of
major new clients, such as Coca-Cola. This segment also benefited
from its focus on the target markets Retail and Wholesale, Food &
Beverage, and Healthcare which last year kept their investments in
improving its logistics on a high level. Geographic diversification
had positive effects with major orders in the booming Chinese market
and in Australia. The segment Software increased sales, order intake
and backlog, thanks to several major orders in the target markets
Pharmaceuticals/Chemicals, Food & Beverage, and Retail as well as the
expansion of the multi-site and partnership business.

Difficult year for the segments Material Flow Systems and Robotic
Systems
The year 2002 was not satisfactory for the segments Material Flow
Systems and Robotic Systems. The slight increase in order intake and
backlog in the segment Material Flow Systems was clouded by the lower
sales and above all the sharp decline in the EBITDA. The result of
the segment Robotic Systems was negatively influenced by the ongoing
cyclical decline in the electronics industry and, above all, by the
downswing of the divested Color Logistics business. Adjusted by the
divested business, this segment was able to increase order intake and
backlog.

Order intake, order backlog and sales 2002


1.1. - 1.1. - Change in Change in %
12.31.2002 12.31.2001 % (in local
(in CHF) currency)
Supply Chain Solutions
Order intake 539.8 526.5 2.5 8,0
Order backlog 379.0 356.4 6.3 17,8
Sales 474.1 411.5 15.2 20,7
Supply Chain Software
Order intake 195.6 158.7 23.3 27,3
Order backlog 94.6 79.6 18.8 23,5
Sales 182.9 147.8 23.7 27,4
Material Flow Systems
Order intake 290.3 270.9 7.2 11,0
Order backlog 128.0 115.7 10.6 13,9
Sales 279.1 299.7 -6.9 -3,0
Robotic Systems
(without divested Color
Logistics) 48.2 44.2 9.0 11,8
Order intake 24.2 17.8 36.0 37,9
Order backlog 41.4 49.9 -17.0 -14,2
Sales
Group
(without divested Color
Logistics) 954.7 916.2 4.2 8.4
Order intake 563.3 526.5 7.0 15.0
Order backlog 875.3 845.0 3.6 7.6
Sales
Color Logistics (Corob)
Order intake 74.8 94.4 -20.8 -12.6
Order backlog 0 9.6 --- 0
Sales 74.5 94.4 -21.1 -12.9
Group (incl. Color
Logistics)
Order intake 1'028.2 1'010.6 1.7 6.2
Order backlog 563.3 536.1 5.1 13.1
Sales 948.6 938.9 1.0 5.3








Financial Calendar:

March 4, 2003: Annual Media and Analysts'
Conference

May 14, 2003: Annual General Meeting




Contact

Swisslog Holding AG Swisslog Management AG
Konrad Peter Thomas Werder
Chairman of the Board of Corporate Communications / Investor
Directors Relations
Tel.: +41 (0)62 837 95 83 Tel.: +41 (0)62 837 95 63
(between 7.00 and 10.00 a.m., Fax: +41 (0)62 837 95 55
February 4, 2003 ) E-mail: thomas.werder@swisslog.com
URL: www.swisslog.com




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About Swisslog

Swisslog is a global provider of integrated supply chain solutions
for the entire value-added process from procurement and production to
distribution. Swisslog's solutions increase their customers'
flexibility, responsiveness, productivity and quality of service,
while minimizing logistics costs.
The comprehensive portfolio ranges from consulting, logistics
solutions, and software to automation technology. With years of
experience in the development, implementation and operation of
comprehensive supply chain solutions, Swisslog provides the expertise
that customers in more than 50 countries around the world rely on.
Headquartered in Buchs/Aarau, Switzerland, Swisslog currently employs
around 3,500 staff in 23 countries worldwide. The group's parent
company, Swisslog Holding AG, is listed on SWX Swiss Exchange
(security number: 1232462, Telekurs: SLOG, Reuters: SLOGn.S). For
more information, visit: www.swisslog.com