Press information, 04 February, 2003

Cap Gemini Ernst & Young sign outsourcing agreement with Mölnlycke Health Care

Cap Gemini Ernst & Young Sverige AB (CGE&Y) will administer Mölnlycke Health Care AB's (MHC) SAP environment, which has 1,200 users at 24 locations around the world. The agreement is estimated to 3 245 KEUR over two years, with an option to extend. At the same time, CGE&Y guarantee MHC lower IT costs with up to 20-25 % in 2003.

The new outsourcing agreement applies to the administration of all MHC's systems for SAP, CRM and analysis tools. CGE&Y is already responsible for the Help Desk function. Previously, the administration of MHC's IT environment had been provided in conjunction with the implementation projects of IT systems under CGE&Y's responsibility.

Furthermore, the lowering of MHC's IT costs by 20 and 25 per cent in the coming year is included in the undertaking as well as taking further measures to improve efficiency and lower costs in 2004. The biggest part of the cost reduction is involved in the areas CGE&Y supplies. In order to maintain the high level of quality, a smart solution for carrying out the administration was required. The solution is called AM Service Center, in which CGE&Y has gathered the necessary resources for taking care of the applications of several customers at the same time. In this way, it is possible to provide the appropriate competency, standardize the way of working and achieve a synergy effect for the customers.

"We see a great opportunity for lowering our customers' IT costs by taking responsibility for this types of service. I am pleased that we have been able to further strengthen our co-operation with Mölnlycke, one of our most important customers," says Sven Berg, CEO for Cap Gemini Ernst & Young in Sweden.

The background to the agreement is that over the past couple of years, MHC has made considerable investments in a whole new business system and would now like to achieve the cost efficiency that SAP can contribute. When choosing a collaborator, a long partnership was important, nevertheless MHC went to several companies to compare the agreement that they have had with CGE&Y since 1999 with the competition.

"In the last few years Mölnlycke has been in an expanding phase, which demands a strong partner. We have had this with CGE&Y. Now when it comes to increasing cost efficiency, long-term relationships are equally important. Naturally, CGE&Y's intimate knowledge of our business has also had a great influence over the choice of partner," says Olle Jonsson, CIO at Mölnlycke Health Care.

For more information contact:

Olle Jonsson, CIO Mölnlycke Health Care
Tel: 070-429 30 36
E-mail: olle.jonsson@molnlycke.net

Sven Berg, CEO Cap Gemini Ernst & Young Sverige
Tel: 070-588 19 90
E-mail: sven.berg@cgey.com

Anna Bellman, Head of Information Cap Gemini Ernst & Young
Tel: 070-513 47 03
E-mail: anna.bellman@cgey.com

About Mölnlycke Health Care
Mölnlycke Health Care, with its head office in Gothenburg, is one of the world's leading manufacturers and suppliers of sterile, single-use products for operation and wound care. The assortment consists namely of drapes for surgical procedures, surgical gowns, bandages and advanced wound care products.