Lyonnaise des Eaux France and IBM Global Services extend IT Services contract for five years

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ARMONK, NY - 23 Jan 2004: IBM and Lyonnaise des Eaux France, the French water company, a subsidiary of Suez Environment (Water & Waste), today announced that the companies have signed a five-year extension to an existing agreement for IT Services in a deal worth about 36 million Euros.

Under the terms of the contract, IBM Global Services will provide Lyonnaise des Eaux France with infrastructure services in addition to managing the company's national applications operations and maintenance. Lyonnaise des Eaux France will retain the management of its core water-related applications, focusing on its business activities and customer relations.

The contract will enable Lyonnaise des Eaux France to increase efficiencies and productivity levels by integrating and harmonizing its IT infrastructure and increasing the level of mutualization. Through this agreement Lyonnaise des Eaux France aims to reduce its IT operations costs by up to 25% over the next five years.

Speaking of the agreement, Jean-Michel Théron, Managing director of Lyonnaise des Eaux France, said, "In order to offer competitive services to our customers, Lyonnaise des Eaux France carries out continuous research to improve productivity and the services we offer. We listen to our customers and make the changes necessary to improve our service; we apply to ourselves what we recommend to our customers, and we leave it to the specialists such as IBM to manage the processes and services that are not core to our business."

"This is an important step in our relationship with Lyonnaise des Eaux France as it demonstrates its ability to adapt and tailor its services as clients' needs change," said Eric Auvray, General Manager, IBM France, Belgium and Luxembourg. "IBM's solution will enable the company to focus more on its core business knowing that IBM will optimize Lyonnaise des Eaux France's information system in order to create value and important cost savings."

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