Terra-Gruppen (Terra) currently has seven contracts with companies in the EDB Business Partner group (EDB). The contracts include clauses that allow Terra to give notice of early termination for commercial reasons.

 

At the same time as giving notice of early termination, Terra has asked EDB to submit a comprehensive new proposal for the services covered by the contracts affected. In making this request, Terra has focussed in particular on competitive prices and improvements in service and delivery quality.

 

The termination notices will have no effect on the accounting years 2003 and 2004. In the event that negotiations between the parties do not reach a successful conclusion, the early terminations will cause a shortfall in turnover relative to the original contractual terms of NOK 150 million in 2005 and NOK 200 million in 2006. If the parties do reach agreement to continue their collaboration, the contractual relationship with Terra may be extended to cover the period through to end-2010.

 

"Terra has told us that it is not satisfied with its current relationship with EDB. This is something we take very seriously, and we intend to start work immediately on producing a new proposal. We have enjoyed a long-term relationship with Terra, and my ambition is to maintain and further develop this relationship", comments Ole Urdahl, Executive Vice President, Bank & Finance, EDB Business Partner. "I believe that the process of change we have instigated for Bank & Finance is moving our business in the right direction, but I also recognise that we still have some way to go to actively demonstrate this to our customers", adds Ole Urdahl.

 

 

Any enquires may be addressed to:
Ole Urdahl, Executive Vice President,

Bank & Finance, EDB Business Partner.

Tel: + 47 90 53 61 16

 

Reidar Gjærum, Executive Vice President,

Corporate Communications, EDB Business Partner.

Tel: + 47 90 85 51 01