Under tables published by UK water regulator Ofwat, Dwr Cymru Welsh Water is
already Britain’s top-ranked water company for customer service. The company says
that working with Capgemini will enable it to build on success and move forward
in meeting its ambitious regulatory and business targets.

Fraser Nairn, Head of IT of Dwr Cymru Welsh Water, said: ‘Our planned business
and IT transformation will be key to delivering value and holding down prices
for our consumers, effecting further improvements in customer service, meeting
regulatory Ofwat requirements, reducing overall costs, improving our ability to
manage our assets efficiently, and planning future investments in our infrastructure.’

The Capgemini proposals were chosen against over 20 rival bidders because of
their focus on a collaborative approach and their proven record in effecting successful
business and IT transformations at leading public and private sector organisations,
including regulated utilities. Other factors in Capgemini’s success were its Rightshore™
distributed delivery approach which will give Dwr Cymru Welsh Water access to
global resources for cost-effectiveness, and its strong alliance with SAP whose
specialist enterprise software for utilities will form the technology basis of
the Capgemini solution.

Fraser Nairn continued: ‘We selected Capgemini after a rigorous bidding process.
We were especially impressed by their evident ability to work closely with us
as an integrated team and by their credentials which included enthusiastic references
from utility companies in the UK and elsewhere.’

The contract involves all three of Capgemini’s main areas of expertise – information
technology, business consultancy and outsourcing – working together and in collaboration
with Dwr Cymru Welsh Water and its partners to effect a successful transformation.

Capgemini will take responsibility for part of Dwr Cymru Welsh Water ‘s IT infrastructure
and services from October 2006 following a transitional period. It will then support
the existing IT systems on an outsourcing basis while developing and installing
a new generation of IT systems. A number of staff will transfer to Capgemini under
TUPE conditions and with union agreement.

Capgemini is also tasked with renewing or replacing all 2,000+ desktop PCs used
by the water company’s own staff and its service partners, and with providing
help-desk and problem management services from Capgemini’s support centre.  The
Capgemini transformation team will be based at the Dwr Cymru Welsh Water HQ in
Nelson, South Wales and at Capgemini’s Swansea centre.

Capgemini Director Ian Roy said: ‘We are looking forward to delivering the benefits
of world-class IT at Dwr Cymru Welsh Water and helping them effect further improvements
in their already impressive record of achievement across their whole business.
We believe that winning this important contract also leaves us well placed to
help other parts of the UK water industry pursue improvements. This contract also
demonstrates Capgemini’s commitment to further developing its business in Wales.’

– ends –

Work on the transformation programme will begin immediately.

Press contact:

Tom Barton

Tel.: +44 870 238 2491

Email: tom.barton@capgemini.com

About Capgemini

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, Capgemini helps businesses implement growth
strategies, leverage technology, and thrive through the power of collaboration.
Capgemini employs approximately 61,000 people worldwide and reported 2005 global
revenues of 6,954 million euros.

Website: www.capgemini.com