EDB Business Partner and Telenor Business Solutions (Telenor Bedrift) have today signed a Memorandum of Understanding for the integration of their respective activities involved in the supply of data and voice products into a jointly owned independent company.

The two companies have taken this step in order to create a major nationwide ICT company which will have annual turnover of some NOK 1.5 – 2.0 billion. The new company will incorporate EDB Intech and the activities of Telenor Business Solutions related to the supply of data and voice equipment. In addition the move to spin off the two companies’ activities in this area into a new company will help both EDB Business Partner and Telenor to further develop their respective business focus in the areas of software, IT services and telecommunications.

The two businesses which are to be brought together complement each other well in terms of market coverage, product range and expertise. The new company will be able to offer complete systems in the areas of voice, video and data, and will primarily target larger and medium sized clients in the corporate private sector and in the public sector. The new company will offer a combination of expertise in data, video and voice communications, giving it the ability to meet market demand for comprehensive systems which will be essential to maintain a competitive position in the future. The activities of the new company will encompass the supply of both products and services related to the installation and operation of data and communications systems, making it an important commercial partner for Telenor and EDB Business Partner in respect of major system integration projects.

Olav Myhre, the current Managing Director of EDB Intech, is nominated as the Managing Director of the new company, with Roy Wachek of Telenor Business Solutions taking on the position of Deputy Managing Director.

EDB Business Partner and Telenor Business Solutions believe there is a need for larger units in this sector of the market, and the two parties are favourably inclined to playing a further role in this process of consolidation through co-operation and mergers with other related businesses.

The final commercial terms for the creation of the new company have not yet been finalised, and it is expected that proposals for a formal agreement will be placed before the respective Boards of Directors during the course of September.

For additional information please contact:

- Thor Halvorsen, President and CEO, Telenor Business Solutions, Tel. 23 16 61 02
- Bjørn Trondsen, Chief Executive Officer, EDB Business Partner ASA, Tel. 22 94 40 40