EDB gives notice to the City of Oslo to cancel an operating services contract

EDB gives notice to the City of Oslo to cancel an operating services contract

(Oslo, 26 January 2009) The Board of Directors of EDB Business Partner ASA has decided to give notice to the City of Oslo to cancel a contract to supply applications operating services. This decision has been taken against a background of disagreement between the parties on commercial matters related to some aspects of the services provided. In accordance with the terms of the contract, notice of cancellation comes into effect after 15 working days, and this will cause an annual reduction in revenue of NOK 40-50 million for the IT Operations business area. In order to adapt to the lower level of revenue caused by the cessation of the contract with the City of Oslo, EDB will reduce its headcount by approximately 30.

EDB will recognize an accounting provision of NOK 66.1 million as a result of the termination of the contract to supply applications operating services. This will be charged to the accounts for the fourth quarter of 2008, and will have a negative effect on the company's EBITA after non-recurring items.

Based on both internal and external evaluation, EDB believes that the company has a valid claim for remuneration in respect of the services supplied that are the subject of disagreement between the parties, and awaits the result of future negotiations in this respect.

EDB's cash from operations in the fourth quarter of 2008 was greater than in the fourth quarter of 2007. The company's net interest bearing liabilities fell to approximately NOK 3 billion at 31 December 2008.

In addition, as part of the process of preparing its annual accounts, EDB Business Partner ASA has carried out a detailed impairment test of the company's goodwill and other intangible assets. This has not resulted in any balance sheet write-downs.

EDB will publish its interim report for the fourth quarter of 2008 and its full-year accounts for 2008 at 08.00 on Wednesday, 4 February 2009.

Contact persons:

Kristian Kuvaas Johansen, EVP and CFO, EDB. Tel: +47 476 03 334
Geir Remman, EVP - Corporate Communications, EDB. Tel: +47 970 55017

About EDB

EDB Business Partner is one of the leading IT groups in the Nordic region. The company offers solutions for the full range of business-critical IT services. EDB aims to be a close and attentive partner that leverages its deep industry knowledge and international capabilities to help its customers realise the full potential of IT. The company has local presence in 13 countries, 6,000 employees and an annual turnover of NOK 8 billion.