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Mitsubishi Trust & Banking Corporation Selects IBM as Outsourcing Partner


Tokyo, 2 - 24 Mar 1999: ... The Mitsubishi Trust & Banking Corporation and IBM Japan today announced that they have reached a basic agreement for the trust bank to enter a strategic outsourcing agreement with IBM Japan worth more than $350 million over ten years.

The contract, which will be carried out by IBM Global Services, Japan, is expected to be concluded imminently, with implementation starting in April. IBM Global Services is the world's largest and most diverse IT services provider.

The scope of services to be undertaken includes the operation and integration of Mitsubishi Trust & Banking Corporation's several computer data centers across Japan, and the monitoring of the networks that link the trust bank's sales offices across the country. It is also expected that a second phase of the strategic outsourcing contract, aimed at reducing the total cost of ownership of the trust bank's distribution processing systems, will begin in the next few months.

General Manager of Systems Planning Division of the Mitsubishi Trust and Banking Corporation, Mr. Yoshifumi Ohno, said outsourcing would allow the trust bank to allocate personnel to strategic operation areas while utilizing technology to respond quickly to the changing banking industry in Japan, such as developing new financial products aimed at the 'Big Bang' deregulation of the Japanese financial system.

"The technology infrastructure required by financial institutions is becoming increasingly complex making it difficult for a single financial institution to manage and operate these technologies on its own. By working with IBM Japan, a highly specialized company possessing advanced technologies and experience in this field, it will be possible to receive a stable and efficient service and also to better utilize information technology to meet our business needs," Mr. Ohno said.

General Manager, IBM Global Services, Japan, Mr. Takuma Otoshisaid that Mitsubishi Trust & Banking Corporation has been an IBM Japan customer for over 30 years and that this strategic outsourcing agreement was built on the strong relationship that has been established between the two companies over those years.

"This information technology (IT) outsourcing solution will help Mitsubishi Trust & Banking Corporation focus on their core business while IBM takes care of the increasingly complex technologies required to run the trust bank," Mr. Otoshi said.

Established in 1927, the Mitsubishi Trust and Banking Corporation is the largest of Japan's trust banks in terms of total funds, which amounted to YEN33.0 trillion ($US249.9 billion) as of March 31, 1998. As one of Japan's most prominent institutional investors, Mitsubishi Trust has a total securities portfolio worth YEN19.8 trillion ($US150.1 billion). Outside of Japan, the Bank provides a full spectrum of services for borrowers and investors through its network of eight branches, four representative offices and 11 subsidiaries. Mitsubishi Trust growth to date reflects its untiring commitment to strength, integrity, service and social responsibility. The Bank is confident that these priorities will enable it to capitalize on the profound changes taking place in Japan's financial sector and prosper in the years ahead.

IBM Global Services is the world's largest information technology services provider, with 1998 revenues of approximately $29 billion. Services is the fastest growing part of IBM, with more than 126,000 professionals operating in 160 countries. IBM Global Services integrates all of IBM's capabilities -- services, hardware, software and research -- to help companies of all sizes realize the full value of information technology. IBM has signed a number of outsourcing deals in Asia Pacific over the past year including with Daiwa Bank, Omron Corporation, Korean Airlines, Prudential Insurance and Cable & Wireless Optus. For more information on IBM Global Services visit http://www.ibm.com/services.

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Contact(s) information

Amanda Garland
61 2 935 44881
61 412 254 935 (mobile)
amandag@au1.ibm.com

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