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 XANSA ANNOUNCES MAJOR IT OUTSOURCING CONTRACT WITH BOOTS

Xansa, the Business Consulting, Information Technology and Outsourcing company, announces the signing of a major IT Outsourcing contract with Boots commencing 1 November 2002. The deal, with a potential value of £90 million over seven years is initially underpinned by a minimum commitment of £54 million. It is expected, over the lifetime of the contract, to deliver significant improvements in IT development capability with savings of up to £30 million.

As part of this contract, more than 200 people from Boots’ Information Systems and Technology function, who currently have responsibility for all Boots’ central application development and support, will transfer to Xansa. Located at Boots’ headquarters in Nottingham, this team is key to the development of new processes and systems for Boots and will further enhance Xansa’s retail sector capability.

Xansa has been working with Boots since July 2001 on the development of Boots’ future systems plans and under this IT Outsourcing contract, Xansa will now take responsibility for the continuing support and development of these business applications across Boots. The cost savings delivered by Xansa will be reinvested by Boots in developing advanced IT solutions to further support the delivery of retail excellence.

Steve Russell, Boots Chief Executive, said: "Information Systems are at the heart of modern retailing. Building on Xansa’s work to date, this deal gives us further savings of up to £30 million over the next seven years. Last week we announced the outsourcing of our IT infrastructure. Once again we will channel the savings from the Xansa business applications outsourcing contract into more IT improvements to benefit our customers and the business."

Alistair Cox, Chief Executive of Xansa, said: “This strategic partnership gives Boots and Xansa the opportunity to further complement each others’ strengths and is a natural progression of the strong relationship already formed between our businesses. This contract will allow Boots to focus on developing and delivering retail excellence and product and service innovation. Xansa brings proven expertise in designing and implementing advanced retail management processes which will create value by enabling Boots to make step changes in its retail capability whilst reducing costs. We look forward to a long and mutually beneficial partnership with Boots.”

David Lister, Boots Chief Information Officer, said: “We have been working closely with Xansa over the last 18 months. We were attracted by their excellent track record in developing close and long running relationships with large-scale organisations such as ours, and by their retail expertise. They have proved themselves excellent partners in the development of our future systems plans. Going forward, Xansa will now play a major part in helping us deliver the on-going process and systems improvements we will need to support an outstanding customer offer."

Enquiries:
Rosie Symons
Public Relations Manager, Xansa
Tel: +44 (0)1442 434088
Email: rosie.symons@xansa.com

About Xansa

Xansa (www.xansa.com) is a company that transforms the business capability of its clients by harnessing knowledge of selected industries and business processes with proven skills in applying technology. Xansa has four key areas of expertise: Business Consulting, Information Technology, Outsourcing and Business Process Management, and operates in the UK, North America, Continental Europe, India and Asia-Pacific. The company is listed on the London Stock Exchange under the code XAN.L.

About The Boots Company

Best known as the UK's largest pharmacy chain, the company also owns, develops and markets consumer healthcare products in 130 countries around the world through Boots Healthcare International. Among its best known brands are Nurofen, Strepsils and Clearasil.

Boots retail operations continue to break new ground in health and beauty with the recent introduction of wellbeing services from aromatherapy to laser eye surgery. The company's unparalleled product offer includes Boots brands and exclusives such as Britain's top selling cosmetics range, No7, and the designer haircare brand Toni & Guy. In addition to its stores in the UK and Ireland, Boots also operates in Thailand, Taiwan, The Netherlands and Italy.