The contract renews and extends existing arrangements between the two companies
currently based on services provided from Capgemini centres in the UK. Matalan
says that by accepting Capgemini’s Rightshore™ proposals, it will gain significant
cost savings and further increases in IT efficiency and service quality. At the
same time Matalan is confident that it is ensuring continuity of service and minimising
risk by remaining with Capgemini as its prime IT service partner.

Pete Trainer, IT Director at Matalan, said: “We were impressed by the quality and professionalism of Capgemini’s Mumbai operations
and reassured by their combination of a UK team on our doorstep with highly cost-effective
support from India. Costs have already been reduced and quality boosted through
working with Capgemini and we look forward to both these trends continuing and
accelerating under the new arrangements.”

Under the new contract, Capgemini will be supporting all of Matalan’s core business-critical
applications from Mumbai, including point-of-sale, stock control and replenishment,
merchandising, finance, human resources and office applications. Service Desk
and desktop support services will be provided from a Capgemini customer service
centre on client site and will support some 500 Matalan staff at the retailer’s
Skelmersdale, Lancashire HQ, at its three distribution depots and at its 200 UK
stores. Capgemini will also be providing Matalan with IT infrastructure management
and network infrastructure services.

Capgemini, which is pursuing ambitious plans to recruit additional staff across
all main technologies throughout 2007, aims to redeploy or reskill its UK staff
involved at Matalan into other roles wherever possible in order to help satisfy
strong demand from its expanding UK client base.

Paula O’Brien of Capgemini, said: ‘We have worked alongside Matalan successfully for a number of years, delivering
IT to meet their business needs. It is great news that we will be continuing
transformation of IT at Matalan by deploying some of our leading-edge global
resources on their behalf, and I look forward to building upon this mutually beneficial
relationship over the next six years.’

-ENDS-

About Capgemini

Capgemini, one of the world’s foremost providers of Consulting, Technology and
Outsourcing services, enables its clients to transform and perform through technologies.
Capgemini provides its clients with insights and capabilities that boost their
freedom to achieve superior results through a unique way of working, which it
calls the Collaborative Business Experience. Capgemini reported 2006 global revenues
of EUR 7.7 billion and employs more than 75,000 people worldwide. More information
is available at www.capgemini.com