Papenburg, 31.03.2003 - MEYER WERFT is negotiating new orders to build big cruise vessels and is hoping that respective decisions on the placing of orders will be made by this summer provided the war in Iraq will come to a soon end. The potential utilisation identifiable from these negotiations will by far not suffice to employ the existing capacities. For this reason, a significant cutback of about 800 employees is mandatory. Concept 2004 During today's information meeting, MEYER WERFT staff were informed about the forthcoming restructuring measures (Concept 2004). The management presented their plans how to secure jobs past 2004. The details of these plans are: Adjustment to capacities in line with the market Due to the difficult world economy and the reluctant market assessment MEYER WERFT has to reduce their present staff of 2,600 by approx. 800. In doing so, the know-how indispensable for the shipyard, will not be affected. All measures required for a market-driven adjustment, will be discussed with the company's staff council and the unions. Strategy: Increase of Competitiveness Because of the long-term good growth projection of the cruise industry, investments were made with respect to the shipyard location Papenburg. A second covered building dock and one of the most modern laserwelding plants in the industry were established. Over the past two years, the shipyard has made many additional modifications as to organisational procedures. Among these were the introduction of teamworking concepts and the flexibility of working hours was increased significantly. This reorganisation of the company (Concept 2002) has began in 2001 and showed major positive impact on the work procedures. With many measures in place, the shipyard is in a position to internally compensate phases of underemployment. Only the combination of all measures to reduce costs and to increase productivity, however, will enable the shipyard to successfully exist in the international competition. Given today's particularly difficult and challenging global economy and the uncertain process of the Iraq war, the company faces the customers' demands regarding prices, quality and deadlines. The course must be set now - at an early stage - for the right direction to ensure to be a leading supplier of passenger and cruise ships still past 2004 as this market has tremendous growth potential on a long-term basis.