Old Mutual and Nedbank sign $275 million network outsourcing agreement with CSC and Telkom South Africa

Issued by CSC
El Segundo, Calif, 18 Aug 2005

Computer Sciences Corporation and Telkom South Africa today announced that the two companies have been awarded a five-year, $275 million network outsourcing contract with Old Mutual, the largest financial services group in South Africa, and Nedbank, one of the four largest banking groups in South Africa. CSC estimates its share of the revenue to be approximately $125 million.

The new agreement follows and is incremental to a seven-year, $300 million information technology (IT) outsourcing agreement CSC signed with Old Mutual in 1999, under which CSC manages Old Mutual`s IT infrastructure in South Africa.

Under the terms of the new agreement, CSC and Telkom will manage and operate networking services for Old Mutual and Nedbank throughout South Africa. Specific responsibilities include the creation of a single, shared data and voice network infrastructure, and the provision of data and voice services, network security and help desk support. These services will support employees located at Old Mutual and Nedbank operational centers in Cape Town, Durban and Johannesburg, and branches throughout South Africa. The companies assumed responsibility for service provision on Aug. 1, 2005.

CSC and Telkom bring a wide range of resources, knowledge and technical expertise to the engagement. CSC will manage the relationship with Old Mutual and Nedbank, act as the single point of contact for all communication and services and, together with Telkom, leverage appropriate resources and expertise to provide required services. CSC will also provide local area network management and support services at Old Mutual and Nedbank principal operational centers, and deliver help desk services from its facility in Cape Town. Telkom will be responsible for the management and support of wide area network and voice services, implementation of a centralized telephone management solution and local area network support for branch locations.

"This agreement with Old Mutual and Nedbank reinforces CSC`s position as a major IT provider to the financial services sector in South Africa," said Guy Hains, president of CSC`s operations in Europe, the Middle East and Africa. "We look forward to applying our expertise and experience to help Old Mutual and Nedbank achieve significant business results."

"This agreement positions Telkom as a serious player in the IT and outsourcing market," said Telkom CEO Sizwe Nxasana. "This endeavor is in line with our strategy to provide end-to-end customer focused solutions aimed at supporting the customers` business strategies and operations."

"Industry analysts predict that network convergence will become pervasive in South Africa as well as on a global scale," said Theo Nkone, CIO at Old Mutual. "This agreement is the first joint implementation between two major financial services companies in South Africa and enhances the reach and range of services Old Mutual and Nedbank can offer at its many locations."

"This new and exciting venture will allow Nedbank to demonstrate business value, reduce the risk of technology failures and leverage the buying power of the two organizations," said Willie Scholtz, divisional director of Group IT Operations at Nedbank. "Old Mutual and Nedbank will benefit from immediate and significant cost reductions and will have access to leading edge technology with no capital expenditure requirements."

Telkom SA

Telkom SA Limited is one of the largest companies registered in the Republic of South Africa and is the largest services provider on the African continent based on operating revenue and assets. Telkom offers fixed-line voice and data services, branded as Telkom, and mobile communications services through a 50% shareholding in the joint venture, Vodacom, a company incorporated in the Republic of South Africa. Vodacom operates in South Africa, Tanzania, Lesotho, the Democratic Republic of Congo (DRC) and Mozambique and is a joint venture investment with Vodafone Group Plc (35%) and VenFin Limited (15%).

The Old Mutual Group

In South Africa, Old Mutual is the largest financial services business, through its life assurance, asset management, banking and general insurance operations. Old Mutual South Africa owns majority stakes in Nedbank, and Mutual & Federal. The company serves 4 million life assurance policyholders and employs more than 13,000 South Africans in its local operations. Their core businesses enable millions of South Africans to acquire wealth, financial independence and security. They are committed to fostering a culture of savings and self-reliance and are actively involved in many key issues including Black Economic Empowerment, affirmative procurement, rural economic development and AIDS education. Old Mutual`s investments in infrastructure have paved the way for massive improvements within the fields of electrification, water and housing.

Nedbank Group

Nedbank Group Limited (previously Nedcor Limited) is a bank holding company that, through its principal banking subsidiary, Nedbank, together with the other members of the group, operates as one of the four largest banking groups in South Africa.

The principal services offered by the group comprise of corporate and retail banking, property finance, investment banking, private banking, foreign exchange and securities trading. Nedbank Group also generates revenue from private equity, credit card issuing and processing services, custodial services, asset management services and bancassurance services.

Nedbank Group`s headquarters are in Sandton, Johannesburg, with large operational centres in Durban and Cape Town.

Nedbank Group has nine subsidiary and/or affiliated banks, as well as branches and representative offices in certain key global financial centres that serve to support the international banking requirements of the group`s South African-based multinational clients. The company`s ordinary shares have been listed on the Johannesburg Stock Exchange since 1969.

CSC

Founded in 1959, Computer Sciences Corporation is a leading global IT services company. CSC`s mission is to provide customers in industry and government with solutions crafted to meet their specific challenges and enable them to profit from the advanced use of technology.

With approximately 79,000 employees, CSC provides innovative solutions for customers around the world by applying leading technologies and CSC`s own advanced capabilities. These include systems design and integration; IT and business process outsourcing; applications software development; Web and application hosting; and management consulting. Headquartered in El Segundo, Calif., CSC reported revenue of $14.1 billion from continuing operations for the 12 months ended April 1, 2005. For more information, visit the company`s Web site at www.csc.com.

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