Abstract. The Λ polarization, the analyzing power, and the Λ spin transfer coefficient of the reaction pp Ñ pK`Λ were measured at beam momenta of 2.70 GeV/c and 2.95 GeV/c corresponding to excess energies of 122 MeV and 204 MeV. While the analyzing power and the spin transfer coefficient do not change significantly with the excess energy, the Λ polarization varies strongly and changes its sign. As this is the first measurement of polarization observables below an excess energy of 200 MeV, the change of the sign of the Λ polarization was not observed before. The high statistics of the data (« 200 k events for each momentum) enables detailed studies of the dependence of the Λ polarization and the analyzing power on the center of mass momentum of the particles. The results of the spin transfer coefficient are in qualitative agreement with the DISTO experiment. The Λ polarization data of 2.95 GeV/c are only conform with the DISTO experiment, while both the 2.70 GeV/c and 2.95 GeV/c data differ strongly from all previous measurements, whether exclusive or inclusive.