Leading retailer Matalan is to share the benefits of upgrading its desktop PCs
to Windows XP with its technology & outsource partner, Capgemini UK plc (“Capgemini”).

Matalan is looking to maximise the benefit from this essential technology upgrade
through efficiencies, improving administration, speed of response and service
to the business. Capgemini is taking advantage of the new technology to revise
the way it delivers the service to Matalan to reduce the manpower required and
use this saving to provide additional services.

The roll-out is scheduled for completion this summer at Matalan Head Office,
distribution centres and all its 190+ stores.

The programme follows a review of desktop technology at Matalan carried out by
Capgemini. The review was followed by a high-level design and business case for
new IT investment carried out by Capgemini in collaboration with Matalan’s own
IT team.

Nick Beighton, Business Systems Director at Matalan, said: ‘The new technology
will give us further significant improvements in service levels and cost-efficiency
as well as enhancements in security.’

The programme also involves a major hardware upgrade, with new or upgraded desktops
for many of the 1600 Matalan Head Office and store-based users, and new network
servers to be based at a Capgemini data centre in Rotherham. As part of the programme,
all Matalan’s desktop-based applications are being reviewed for relevancy and
currency before being refreshed and migrated to the new hardware platform.

Input from over 40 Matalan staff at all levels was sought to ensure the full
impact of the migration to Windows XP was understood.

Technology platforms in the new programme also include Windows 2003, Active Directory,
Exchange 2003, SMS 2003 and MOM 2005.

Kevin Tomlinson, Head of European Outsourcing, Capgemini, said: ‘In our book,
outsourcing is all about effecting continuous improvement on a pro-active basis,
and using the best of new technology to give our clients ever better service.
The new Matalan upgrade is a classic example of that philosophy.’

-ENDS-

For further information, please contact:

Sarah Rowan, Citigate Dewe Rogerson

Tel: 020 7282 1049

sarah.rowan@citigatedr.co.uk

About Matalan

Matalan is one of the UK’s leading clothing and homewares retailers offering
quality fashion and homewares at up to half the equivalent high street price.
Matalan now trades from 5 ½ million square feet in more than 190 out-of-town stores
across the UK. Shopping at Matalan offers outstanding quality at prices that are
simply unmatched elsewhere. By buying direct from the manufacturer and having
convenient out-of-town stores with low overheads, Matalan is able to offer unbeatable
value for money. Further information on Matalan is available at www.matalan.co.uk

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 60,000 people worldwide and reported 2004 global
revenues of 6.3 billion euros.

More information about individual service lines, offices and research is available
at www.capgemini.com