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CSC wins Woolworths IT outsourcing account

Cape Town, 17 Oct 2002

Computer Sciences Corporation in South Africa has started implementing the initial phase of its seven-year information technology infrastructure-outsourcing contract with leading retailer Woolworths.

From 16 October, 23 Woolworths` staff will be transferred to the CSC team managing the three-mainframe site at the retailer`s offices in central Cape Town. The mainframes will become CSC`s assets immediately and be re-located to CSC`s Cape Town datacentre in February 2003 after the Christmas trading period.

CSC South Africa Managing Director Martin Vergunst says he is delighted to have won the Woolworths business. "The retail industry is one of our target growth areas in South Africa and to have entered this market by working with such a prestigious client gets us off to a good start."

Woolworths Director Richard Inskip says the decision was based on the company`s strategy of "selective outsourcing of non-strategic technology when it is clear that our partner can do the job cheaper and better than we can".

CSC was chosen, Inskip says, because "Woolworths was impressed with their flexibility in supporting our business needs. We are in a dynamic and cost-sensitive environment so needed the assurance that our outsourcing partner would always be empathetic to the way we operate."

Peter Deering, who heads up CSC`s Retail Practice in South Africa, said that a major contribution to winning the deal was CSC`s guarantee of improved service delivery at reduced costs for each year of the seven-year deal. A key component of this is the oversight and benchmarking of service level agreements and costs by an impartial third party. The best practice management processes used to deliver these benefits supports CSC`s continuing status as one of the world`s top three IT services companies and a major player in the local market.

"Internationally CSC has a number of retail clients and this experience will be of significant benefit as our relationship develops into other areas to support Woolworths` business objectives," adds Deering.

The Woolworths deal gives CSC its first major outsourcing opening away from the financial services industry where it first established its South African presence through Old Mutual and other companies such as Hollard, Metropolitan, ABSA Investment Management Services and Nedcor.

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Woolworths

Founded in 1931, WOOLWORTHS offers customers superior quality merchandise at affordable prices. Today, more than 70 years later, Woolworths is one of Africa`s leading retail chains - trusted by customers to provide quality and excellence in an exciting and modern shopping experience. Woolworths has 193 stores throughout Africa and the Middle East.

CSC in South Africa

CSC offers the South African market a wide range of services, including Systems Integration, Application and Infrastructure Outsourcing, and Business Process Outsourcing, as well as Customer Relationship Management (CRM) and Financial Services Solutions. By combining international best practices with local expertise and knowledge, CSC is one of the fastest growing IT companies in South Africa. A leading IT services provider, CSC adds value through its collaborative approach to delivering fast, flexible solutions.

CSC opened its doors in South Africa in November 1999 and already boasts over 500 employees across South Africa, with offices in Johannesburg and Cape Town. It is continuing to expand rapidly in South Africa and is extending its services to the rest of Africa. For more information, contact (021) 529 6500 or (011) 686 5400.

CSC

CSC, one of the world`s leading consulting and information technology (IT) services firms, helps clients in industry and government achieve strategic and operational results through the use of technology. The company`s success is based on its culture of working collaboratively with clients to develop innovative technology strategies and solutions that address specific business challenges.

Having guided clients through every major wave of change in information technology since 1959, CSC combines the newest technologies with its capabilities in consulting, systems design and integration, IT and business process outsourcing, applications software, and Web and application hosting to meet the individual needs of global corporations and organizations. With more than 66,000 employees in locations worldwide, CSC had revenues of $11.5 billion for the 12 months ended June 28, 2002. It is headquartered in El Segundo, Calif. For more information, visit the company`s Web site at www.csc.com.

Editorial contacts

Marian Shinn
CDS Public Relations
(021) 788 5011
Tessa O`Hara
CSC
(021) 529 6607