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IBM Canada Announces $900 Million Outsourcing Agreement with Scotiabank

Outsourcing deal first-of-its-kind for a major Canadian bank

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TORONTO, Ont - 26 Mar 2001: IBM Canada Ltd. and Scotiabank today signed a Memorandum of Understanding (MOU) to manage several key information technology functions for the Bank. The outsourcing deal is the first of its kind for a major Canadian bank and is valued at $900 million Canadian ($600 million US) over seven years. The agreement is expected to close on May 1, 2001.

Under the agreement, IBM Canada's Global Services group will manage Scotiabank's domestic computer operations, including data centres, branches, Automated Banking Machines, and desktop computer systems for some 24,000 employees. Approximately 450 Toronto-based Bank employees are affected; all of whom will be offered at least equivalent positions with IBM.

"IBM is extremely pleased to be able to provide these services to Scotiabank and we believe the Bank, its customers and employees all win from this deal," said Rick Horton, general manager, IBM Global Services, Canada. "IBM's proven technical and support services will provide the Bank with enhanced access to leading edge information technology."

"We looked to IBM because of their global expertise, innovative technology services and solutions, and their capability to provide absolute security and privacy of customer data," said Peggy Mulligan, Executive Vice-President, Systems & Operations, Scotiabank. "Another key factor in our decision was IBM's commitment to both a diverse workplace and to providing meaningful career opportunities for all of our affected employees."

This outsourcing solution provides competitive advantages for both Scotiabank and IBM Global Services. The Bank will leverage IBM's advanced technology strengths, particularly through partnership in a joint Rapid Application Centre and the deployment of a robust iTeam. At the same time, the partnership will strengthen IBM's presence in the Canadian banking industry.

This agreement resulted from months of intense review and study by the Bank and leading global service providers to ensure the highest levels of service standards would be met and employee career needs addressed. The Bank utilized the expertise provided by Technology Partners International (TPI) to assist in the review process. TPI's mission is to assist clients with the evaluation, negotiation and management of sourcing transactions.

About IBM Global Services
IBM Global Services is the world's largest information technology services provider, with nearly 150,000 professionals serving customers in 160 countries and annual revenue of more than $33 billion (2000). IBM Global Services integrates IBM's broad range of capabilities -- services, hardware, software and research -- to help companies of all sizes realize the full value of information technology. For more information visit www. ibm.com/services.

About Scotiabank
Scotiabank is one of North America's premier financial institutions with more than $273 billion in assets and approximately 52,000 employees worldwide, including affiliates. It is also Canada's most international bank with more than 2,000 branches and offices in over 50 countries. Scotiabank is on the World Wide Web at www.scotiabank.com.

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