Perot Systems takes major stake in SwissAir unit; Consulting Organization, Icarus, Serves European Airlines

Business Wire, March 4, 1997

DALLAS--(BUSINESS WIRE)--March 4, 1997--Perot Systems Corporation today announced it has purchased a controlling stake from SwissAir Corp. in Icarus Consulting AG, a Zurich- and Frankfurt-based management consulting firm that serves the travel and transportation industries in Europe.

Founded in 1988, Icarus had been owned 55% and 45% by SAir Group, the holding company of SwissAir, and Icarus's management, respectively. After today's agreement, Perot Systems will have a 70% stake in Icarus, with a fixed option to purchase the remaining 30% from SAir Group over a three-year period.

Serving major European air carriers, forwarders, hotels, the German railway system and the German Navy, Icarus is a "profit-management" consultancy. It focuses on projects to increase shareholder value through strategy changes, revenue enhancement and cost reduction -- primarily through improvements in business processes, logistics and information technology.

As an example of its work, Icarus recently conceived and implemented a new air cargo system that combined the services of SwissAir and Sabena Airlines. Under this unique arrangement, Sabena has essentially sold its airline cargo space to SwissCargo the SAir Group's cargo arm, giving up marketing and operational costs in exchange for a guaranteed revenue stream. SwissCargo gains added capacity and market share and can utilize its existing sales infrastructure much more efficiently.

"This is a good example of the consolidation of core competencies by major air carriers," said Ludwig Bertsch, the Zurich-based managing director of Icarus. "In the coming years we will see some airlines specializing in the design and management of hub systems and routes designs as network managers. Others will excel in flight operations. Still others will create strong niches in catering, cargo services, or maintenance."

Bertsch and Rainer Behrendt, the Frankfurt-based managing partner, will report to James Champy, chairman of consulting for Perot Systems, and co-author of the best-selling "Reengineering the Corporation."

Champy noted that the Icarus agreement represents the inclusion of a strong travel and transportation consulting capability into Perot Systems. It is also a further expansion into European markets, which today account for 40% of Perot Systems' revenue.

"Icarus's capabilities will be expanded by the strategy and business transformation expertise of our consulting organization, as well as enhanced by Perot Systems' technology competencies," Champy said.

Commenting for SwissAir, Max Michel, head of corporate development of SAir Group, noted that Icarus will gain the technologies and methodologies of Perot Systems along with the ability to compete on a wider basis.

"The arrangement will give us not only continued access to Icarus's industry expertise and capacity, which are needed for SAir Group's ongoing restructuring efforts, but to the extended capabilities of Perot Systems," Michel added.

With more than 30 consultants, Icarus plans to triple in size in the next few years. In addition to Swiss Air and Sabena, it currently consults to Frankfurt Airport.

Its founders, Bertsch and Behrendt, began consulting to airlines with a research project for Lufthansa as assistant professors at the Koblenz School of Corporate Management. The name Icarus was derived from an early acronym, Intelligent Cargo Reservation Utility for Swiss Air, according to Bertsch.

He noted that the brand identity - in an extension of the Greek myth - has acquired a meaning around the need for careful pre-flight planning. "Never lose touch with the ground is, therefore, the golden rule behind Icarus consulting assignments." Bertsch said.

Perot Systems is a leading information technology services and business transformation company with 1996 revenue of $600 million. Perot Systems serves major clients in the financial services, healthcare, energy, telecommunications, manufacturing, insurance and travel and leisure industries in North America, Europe and Asia. Privately owned, Perot Systems has more than 4,600 employees worldwide. More information can be found on Perot Systems through the World Wide Web at http://www.perotsystems.com and about Icarus at http://www.icarus-consulting.com .

CONTACT: Perot Systems Corporation

Bob Gilbert, 617/661-8990, bob.gilbert@ps.net

or

Icarus Consulting AG

Ludwig Bertsch, 41-1-809-4949,

lbertsch@icarus-consulting.com