IBM and Dagrofa in 50 Million Euro, 10-Year Services Agreement

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COPENHAGEN, DENMARK - 12 Feb 2007: IBM (NYSE: IBM) and Dagrofa, one of Denmark's largest providers of goods for the retail sector, today announced a 50 million Euro, 10-year strategic agreement for IBM to manage Nord Data's IT infrastructure and applications. Nord Data A/S is owned by Dagrofa and provides IT-solutions for Dagrofa as well as 50 external customers.

Drawing on its global operations, IBM will provide a flexible solution expected to enhance availability, quality and reduce costs, enabling Dagrofa to strengthen its position as a leading retailer in the grocery, cash-and-carry and catering sectors.

"As we strive to continue to focus on our core business, we also want a strong IT partner who can play a major strategic role for our company. That is why we have trusted IBM to take over responsibility for the main part of our IT-function," says Carsten Normann, Managing Director of Dagrofa.

Dagrofa will leverage IBM's business consulting and technological expertise for distribution and retail. IBM consultants will work closely with the company supporting its future strategic business activities with the aim of reducing costs and improving efficiencies.

"Dagrofa is known for being at the forefront of the Danish retail business," says Sven Kolstrup, Country Executive Manager, Global Technology Services, IBM Denmark. "IBM has worked with the retail industry for over 50 years. This agreement enables Dagrofa to take advantage of IBM's knowledge and experience within the industry, while providing a flexible solution enabling Dagrofa to adjust and meet the challenges of a competitive market."

Approximately 50 IT specialists from Dagrofa's Nord Data will transfer to IBM.

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