Dansk Supermarked and IBM Announce Extensions to Services Contracts

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COPENHAGEN, DENMARK - 19 Jun 2008: IBM (NYSE: IBM) and A.P. Moeller-Maersk owned Dansk Supermarked today announced two significant five-year extensions to existing services contracts. Dansk Supermarked is Denmark's largest chain of food and general merchandise stores with approximately 40,000 employees and more than 1,100 stores across Denmark and several other European countries.

The first agreement, signed in March 2008, covers support, maintenance and project enhancement services for SAP based applications. This agreement extends an existing contract signed in 2005 and has also been tailored to secure the legacy applications as part of Dansk Supermarked's ERP roadmap until 2013.

The second agreement, signed in April 2008, is a five-year strategic outsourcing contract. The scope for this contract is SAP infrastructure hosting and services, including UNIX capacity and operations, storage, help desk and SAP operations services. This contract extends a 2004 agreement covering IT infrastructure across all hardware platforms.

The new agreements allow Dansk Supermarked to focus resources on continued international expansion together with the organizational implementation of the large scale ERP program as IBM will be responsible for the establishment and management of new systems and infrastructure and the maintenance and support for applications. The significant growth of Dansk Supermarked in recent years further consolidates the strong relationship with IBM as full service provider as entering new markets requires flexible and adaptable systems to enable a swift start for employees in new business areas.

"Dansk Supermarked and IBM have had a good and constructive collaboration for several years. It is therefore natural to extend this collaboration to include development and operation of our SAP solution which is important in supporting Dansk Supermarked's continued growth," says Alan Jensen, CIO at Dansk Supermarked.

"Retail is one of the most competitive industries in the world, and timely, accurate information is vital to productivity and cost control," says Sven Kolstrup, Country Executive, Global Technology Services, IBM Denmark. "IBM offers an unmatched breadth and depth of services that drive business results for clients like Dansk Supermarked, allowing them to focus on their customers."

The new agreements will support Dansk Supermarked operations across Denmark, the UK, Sweden, Poland and Germany.

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