KPN Renews Atos DealKPN Renews Atos Deal

UTRECHT, The Netherlands -- KPN and Atos Origin, an international IT services company, have signed Heads of Agreement and Letters of Intent redefining their relationship in The Netherlands in order to reflect the changes in KPN's strategy. Atos Origin will continue to deliver most of the current services to KPN and the contracts will be extended with a minimum duration of 3 years. The relationships with E-Plus in Germany and BASE in Belgium are not altered by the new agreements and remain in place.

Atos Origin and KPN have an extensive outsourcing and IT services relationship dating back to 2001. Atos Origin performs datacenter services, end user services, system integration services, consultancy and application maintenance services for KPN in The Netherlands, Germany and Belgium.

Atos Origin and KPN have agreed that Atos Origin will continue to perform application maintenance and enhancement services for KPN on the current application portfolio. KPN has selected Atos Origin as its sole System Integrator for Enterprise Application Integration and for Delivery Orchestration.

Atos Origin and KPN will continue their day to day collaboration for datacenter services as usual. Since it is now KPN's strategy to be a leading supplier in the Dutch market for infrastructural services including housing and hosting, Atos Origin will transfer three of its six datacenter sites in the Netherlands back to KPN. The transfer is in line with Atos Origin's datacenter strategy, aiming to consolidate its existing datacenters into high availability main sites in the Netherlands and other key countries. The agreement with KPN will have no impact for Atos Origin customers whose high level services will continue to be delivered by Atos Origin.

KPN has also entered the market for workspace services. A logical consequence of this strategy is that Atos Origin and KPN have agreed that, after a period of transition, KPN will insource end user services currently provided by Atos Origin.

The new agreements do not cause any transfer of personnel between the two companies and no restructuring consequences on Atos Origin employees thanks to the continued datacenter services to KPN and increased demand with other customers.

"KPN is a very different company from what it was in 2001. We are pleased that we have found a way to continue our longstanding relationship with Atos Origin and at the same time expand our capabilities as an ICT services supplier in The Netherlands" says Marcel Smits, CFO of KPN. "We are looking forward to a renewed and invigorated relationship with Atos Origin."

Atos Origin S.A.