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Infinium Ceases ASP Operations

Infinium Software Inc. , a provider of Web-integrated enterprise business solutions, today announced it will discontinue its ASP operations and reduce its staff by 13 percent as a result of strategic restructuring to streamline the firm and strengthen its financial and market positions.

According to Jim McGowan, President and CEO of Infinium, the restructuring, which began in April, 2001 is now complete. He says its aim has been to provide significant savings for the firm and improve its overall fitness adding that Infinium ASP was not a profitable part of the business so was determined as no longer be aligned with the Company's strategic direction:

"As part of our strategic restructuring we analyzed Infinium from every conceivable direction - the goal being not only to fully understand our core competencies, but our financial model as well," he explains.

Infinium will reduce its ASP and Advantage staff by approximately 30 employees, leaving the firm with a total of 350 staff worldwide. However, Infinium Advantage, the wholly-owned subsidiary of Infinium and provider of Microsoft Windows-based human resources and payroll solutions, will continue to operate.

McGowan believes the move will result in a more efficient, effective and profitable organization for meeting customer and market demands: "We firmly believe that these restructuring actions were made in the long-term best interests of our customers and shareholders," he says.

However, David Griffin, Infinium's corporate communications manager, would not disclose the total number of its 1,800 customers that will be affected by the action, only to say that the firm will work closely with it existing Infinium ASP customers to transition them to any number of alternative solutions, the details of which were not disclosed.

Griffin says Infinium will now focus on its core competencies of developing, implementing and maintaining enterprise business solutions for mid-sized businesses, optimized for the IBM iSeries.

The news comes weeks before Infinium will report its financial results for the fourth quarter of fiscal year 2001, due to be announced at the of October.