Settlement payment to offset severance expenses incurred in the first quarter of 2009
Hackensack, NJ – April 6, 2009 – Ness Technologies, Inc. (NASDAQ: NSTC), a global provider of information technology solutions and services, announced today that the company has received a settlement of approximately $2.6 million, net of expenses, from its liability insurance provider, related to the arbitration settlement which the company recognized in the fourth quarter of 2007.
Ness will use the settlement to offset higher than normal severance expenses of approximately $2.5 million incurred in the first quarter of 2009.
“The receipt of this insurance settlement marks the final chapter in our arbitration process from 2007,” said Sachi Gerlitz, president and chief executive officer of Ness Technologies. “We plan to use these funds to offset an exceptional first quarter expense attributable to organizational streamlining during the quarter, as we adjusted our capacity to account for slower demand, mainly in Eastern Europe. The actions were part of our previously announced emphasis on profitability as we continued to implement a range of proactive cost management measures.”
As separately announced, Ness will release its financial results for the first quarter of 2009, and conduct its regularly scheduled quarterly earnings conference call, on May 5, 2009.
About Ness Technologies
Ness Technologies (NASDAQ: NSTC) is a global provider of IT and business services and solutions with specialized expertise in software product engineering; system integration, application development and consulting; and software distribution. Ness delivers its portfolio of solutions and services using a global delivery model combining offshore, near-shore and local teams. With over 8,300 employees, Ness maintains operations in 18 countries, and partners with numerous software and hardware vendors worldwide. For more information about Ness Technologies, visit
www.ness.com Forward Looking Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often are preceded by words such as “believes,” “expects,” “may,” “anticipates,” “plans,” “intends,” “assumes,” “will” or similar expressions. Forward-looking statements reflect management’s current expectations, as of the date of this press release, and involve certain risks and uncertainties. Ness’ actual results could differ materially from those anticipated in these forward looking statements as a result of various factors. Some of the factors that could cause future results to materially differ from the recent results or those projected in forward-looking statements include the “Risk Factors” described in Ness’ Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 16, 2009. Ness is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of such changes, new information, subsequent events or otherwise.
Ness Technologies media contact:
David Kanaan
USA: 1-888-244-4919
Intl: + 972-3-540-8188
Email:
media.int@ness.com Ness Technologies investor contact:
Drew Wright
USA: 1-201-488-3262
Email:
investor@ness.com