IBM Wins Multi-Year Business Transformation Contract With British Energy Designed to Drive Efficiencies and Cost Savings

IBM today announced a multi-year agreement with British Energy, the UK's largest electricity generator, to help transform its business by implementing an integrated supply chain strategy that will improve supplier performance, increase power station output and reliability, whilst delivering significant financial benefits. This agreement builds on IBM's current contract with British Energy, signed in May 2004, where IBM has assisted British Energy to generate multi-million pound cost savings and commenced implementation of a range of leading-edge initiatives, putting in place sustained capability and processes.

"British Energy has already achieved a great deal under the agreement with IBM and our continued relationship will help us, and our strategic partners, to provide a best-in-class supply chain service to all business customers, enabling us to deliver a safe, value for money and efficient service, and ensure continuity of supply now and in the future," said John Sexton, Head of Supply Chain for British Energy.

Over the period of the current IBM agreement, British Energy has already successfully completed a complex restructuring, moved into the FTSE 100 and launched a significant asset investment program. With renewed interest in the nuclear agenda, the company has three imperatives which it hopes to achieve under the transformation agreement: to achieve operational excellence; improve financial stability; and seek life extensions for its nuclear power stations.

IBM will work with British Energy staff and its supply base to design, communicate and deliver an integrated program of initiatives that will support achievement of these imperatives. The program scope will focus on transforming the relationship with strategic suppliers through deployment of innovative contracts, improving supplier quality and safety performance, business process improvement, and creating a 15-year vision to support extended nuclear station lives.

"IBM is working with energy and utilities clients around the world to help them improve reliability, customer service and operational costs through the integration of advanced technologies and business process changes," said Steve Hornsby, IBM Global Business Services. "We're pleased to help British Energy move its business forward using our organization's expertise in supply chain, asset management and process management."

For more information about IBM, go to: www.ibm.com

For more information about British Energy, go to: www.british-energy.com

Contact: Jenny Galitz IBM Media Relations 646-598-4551 galitz@us.ibm.com