LogicaCMG Enters Strategic Alliance With Microsoft

LONDON and REDMOND, Wash. — Oct. 2, 2007 — LogicaCMG plc and Microsoft Corp. today announced that they have formed a strategic relationship based on the strong commitment from both companies to launch an initiative called “The Service Factory.”

The Service Factory is a new program designed to establish and operate a world-class service creation and delivery environment using proven partner products alongside Microsoft® Connected Services Framework. In close cooperation with LogicaCMG developers, partners, independent software vendors and operators, an extensive set of innovative services will be developed ready for deployment in a telco-grade environment. The Service Factory will enable telecommunications companies to deliver innovative, converged services with a consistent user experience across domains, and to embrace the Telco 2.0 concept by empowering network-based mashups.

The ability of operators to efficiently and cost-effectively develop and deploy next-generation services is essential to the further development of the industry. Microsoft Connected Services Framework is a server-based software product that provides the foundation to aggregate, deliver and manage different services, whether traditional telecommunications services such as voice and data, Web services or third-party content services. It offers a network-independent, flexible service creation and delivery environment that is accessible to one of the largest IT professional and developer communities in the world.

As a long-term Microsoft ally, LogicaCMG has invested heavily in Microsoft Connected Services Framework and will bring its extensive telecommunications expertise to the relationship.

“The telecoms sector is under intense pressure, and operators are looking for competitive advantage at every turn,” said Thomas Breuer, managing director of Telecoms and Media at LogicaCMG. “To do this quickly and remain one step ahead of the competition on a global scale, operators are looking to the larger IT suppliers for innovation and economies of scale. This relationship between LogicaCMG and Microsoft offers exactly that. Combining LogicaCMG’s total service provision, global reach and more than 2,500 experienced professionals with Microsoft’s proven pedigree and established services will help operators get a much faster time to market for new services.”

“This is ultimately about enabling operators to prosper from the significant changes happening across the Internet, IT and telecoms,” said Terry McGuigan, director of Global Partners, Communications Sector at Microsoft. “By being able to rapidly develop and deploy innovative new customer experiences, operators can transform their businesses. The Service Factory aims to help our customers make the transition to Telco 2.0, reducing not only time to market for new services but cost as well.”

About LogicaCMG

LogicaCMG is a major international force in IT and business services. It employs around 40,000 people across 41 countries. LogicaCMG’s focus is on enabling its customers to build and maintain leadership positions using LogicaCMG’s deep industry knowledge and its track record for successful delivery. The company provides business consulting, systems integration and IT and business process outsourcing across diverse markets including telecoms and media, financial services, energy and utilities, industry, distribution and transport and the public sector. Headquartered in Europe, LogicaCMG is listed on both the London Stock Exchange and Euronext (Amsterdam) (LSE:LOG; Euronext:LOG) and traded on the Xternal List of the Nordic Exchange in Stockholm. More information is available at www.logicacmg.com.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

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