The Catalyst Group Identifies Strategic Opportunities For US Companies Beneath the German...

Business Editors

NEW YORK, BOSTON & DUSSELDORF, Germany--(BUSINESS WIRE)--Nov. 6, 2001

US businesses can turn Germany's current economic challenge to

their advantage through mergers and acquisitions

The Catalyst Group, which delivers international strategic investment

Driven by its experiences with IT organisations across the world, Catalyst believes that the time is ripe for companies in the US, and internationally, to take a foothold in the German market, or increase an existing presence there, through the mergers and acquisitions route. Germany remains the largest IT market in Europe.

Catalyst, which has wide experience in structuring, negotiating and executing transactions worldwide, is itself expanding into Germany, and this month opens a new office in Dusseldorf. Its services will be aimed exclusively at organisations in the IT and telecommunications industries, and its aim is to facilitate mutually beneficial relationships between them and technology companies from abroad.

Apart from Germany, Catalyst's principals, who have proven industry experience, are based in the USA, UK and France. The company's unique ability to understand the cultural nuances of each country, and operate effectively within them, has allowed Catalyst to play a vital role in many high profile cross-border partnership transactions.

Spearheading Catalyst's expansion into Germany is Wolfgang Fieger, who has spent 13 years in international mergers and acquisitions. He has managed a number of strategic transactions between UK, US, French and German clients including two deals for Alchemy Partners and acquisitions on behalf of Sage Group plc and Brain Force AG. His broad knowledge of IT embraces expertise in application software, IT consulting, communications services and the Internet sector.

"Companies in Germany are now facing interesting challenges, and will be looking at the strategic opportunities open to them through mergers and acquisitions with overseas investors," said Wolfgang Fieger. "Not only do we have a comprehensive understanding of the German IT industry, we can also advise foreign companies about the economic situation and how they can turn it to their advantage. The German economy is creating unique opportunities for foreign investors, and the time is right to act on this, with our help."

Another significant factor for foreign purchasers is the change in German corporate taxation that will take effect from January 2002. The reduction from 40% to 25% in corporate income tax will be highly beneficial to buyers from abroad. And for domestic companies looking to sell, the abolition of capital gains tax for corporations, together with the reduction in taxable capital gains for private individuals will act as huge incentives.

"We are very aware of the economic pressures throughout the world," said Robert M. Dunn, Catalyst Principal in the US. "However, there is much that Catalyst can do to help companies in the US to identify unbeatable opportunities in Germany, and achieve their corporate development goals through advice, strategic planning and effective action. Ultimately, our aim is to ensure the best possible outcome for our clients."

The Catalyst Group can be contacted on +203-748-0356 or at www.IT-catalyst.com