ScottishPower has awarded a four-year contract for support and development of
its deregulated application portfolio to Capgemini. This portfolio includes 20
applications that are crucial to ScottishPower’s domestic gas and electricity
business. The new contract started on 01 April 2004 following a three-month transition
of responsibilities from ScottishPower’s existing IT suppliers. The change of
suppliers is intended to benefit ScottishPower’s business, and its 4.0 million
current UK retail gas and electricity customers.

The contract will enhance transparency of IT costs and service levels, increase
flexibility to accommodate ongoing change in energy markets smoothly and rapidly,
and deliver a higher return on its substantial existing and planned investment
in IT. The change will also simplify the management of IT and eliminate the interfacing
problems inherent in working with multiple vendors. Jim McEwan, Group IT Director
of ScottishPower UK is implementing a strategy of rationalisation, consolidation
and simplification across suppliers, business processes and systems. Letting the
single contract for management of the Deregulated Applications to Capgemini is
a cornerstone of this approach.

‘Capgemini’s previous service delivery track record on part of this portfolio
at ScottishPower has demonstrated service excellence at a known price, with no
hidden charges or surprises. They bring an innovative approach aligned to our
business goals, and we share a strong commitment to Scotland,’ said Jim McEwan.
He added, ‘a recognition of the need for ongoing change and willingness to build
flexibility into the contract meant that Capgemini’s approach stood out.’

Rosemary Stark, Capgemini Account Director, commented: ‘We are looking forward
to working together. We will combine both company’s utilities sector experience,
and harness the know how of our application management and technology teams. Together
we will improve and enhance ScottishPower’s current portfolio and deliver long-term
business improvement.’

-ENDS-

Note to Editors

About the Capgemini Group

Capgemini, one of the world’s foremost providers of Consulting, Technology and
Outsourcing services, has a unique way of working with its clients, which it calls
the Collaborative Business Experience. Through commitment to mutual success and
the achievement of tangible value, the company helps businesses implement growth
strategies, leverage technology, and thrive through the power of collaboration.
Capgemini employs approximately 55,000 people worldwide (including 2,727 Transiciel
people who joined on December 2003) and reported 2003 global revenues of 5.7 billion
euros.

ScottishPower is an international energy company, made up of four businesses,
two regulated and two competitive, serving in excess of five million electricity
and gas customers, including 3.9 million in the UK. In both countries we provide
electricity generation, transmission, distribution and supply services. In the
US, our activities also extend to coal mining and gas storage/hub services, and,
in the UK, the supply of gas to our customers. The UK Division includes Generation,
which operates almost 5,000 MW of generation plant including coal-fired power
stations, combined cycle gas power stations, combined heat and power plant, hydro-electric
schemes and windfarms.