MAVIR Chooses IBM in HUF 1.7 Billion IT Infrastructure Agreement

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BUDAPEST, HUNGARY - 07 Aug 2008: The Hungarian Electricity Transmission System Operator Inc. (MAVIR ZRt) has selected IBM (NYSE: IBM) to provide the information technology (IT) infrastructure to upgrade its operations and improve its asset management system. The agreement, worth more than Hungarian Forint (HUF) 1.7 billion (approximately USD$10 million), aims to support the safe and uninterrupted operation of the electricity transmission network -- in line with the latest international practices.

Electricity in Hungary is supplied through a common wire system by several vendors. MAVIR secures the power supply for 5 million households and 300,000 businesses. MAVIR's electricity transmission assets such as transmission line networks and transformers are worth more than HUF 200 billion.

The IBM solution will register network assets, store data related to their maintenance, schedule and assign maintenance work efficiently based on resources, coordinate groups working in the field, and track costs while optimizing expenses. The work and asset management system will be based on IBM's asset management software, Tivoli Maximo, and IBM will provide technology and consultancy services including implementation, system integration and application of industry best practices.

The establishment of the new work and asset management system will be done at the same time as the renewal of the Hungarian power transmission network to be completed by 2010. This renewal will further extend operation safety while reduce cost of operations and maintenance.

Gábor Tari, CEO of MAVIR, said, "We are not simply taking an IBM product off the shelf. We are contracted for cooperation, in which both parties are committed to rendering their best knowledge. At the same time, this relationship provides opportunity for both leading MAVIR and IBM experts to exchange ideas and share experience about information technology and energy and develop innovative solutions together."

Péter Paál, CEO of IBM Hungary, said, "The project is backed by IBM's global knowledge. Our unique approach is taking and localizing proven solutions which use a combination of software, technology, and business consulting. The solution we will deliver to MAVIR requires an understanding not only of technology, but also of the business processes inherent in energy business. MAVIR will leverage IBM's world-class expertise within the energy and utilities sector, and we will help satisfy their needs for high quality, secure, and efficient service."

The agreement was signed in July 2008.

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