IBM Canada and National Bank of Canada sign new $1.1 Billion (Cdn.) outsourcing agreement

Montreal, 12 December 2001 - 

IBM Canada Ltd. and National Bank of Canada today announced the signing of a ten-year, $1.1 billion (CDN) IT outsourcing contract. IBM has been providing IT services to National Bank of Canada since 1994. The new contract extends the relationship through 2011. Under the agreement, IBM Global Services will continue to manage the operations of the Bank's IT infrastructure, including its Web environment and call centres.

The National Bank of Canada and IBM are also forming an initiative aimed at identifying new leading-edge projects in the area of e-business. The Innovation Team (or i-Team) will be comprised of a group experts from IBM's research and consulting organizations who will help identify and build innovative business strategies. The team will also draw on the worldwide capabilities of IBM. Specifics on how the i-Team will work are currently in the planning stages.

This agreement will allow us to "maintain a high-quality and secure technical infrastructure while accelerating the transformation of the Bank into an e-business. And with this increased flexibility and speed, we will be able to respond to the growing needs of our clients with increased efficiency", said Real Raymond, President and COO, National Bank of Canada.

"The National Bank's decision reflects its confidence in IBM as well as the acknowledgement of a successful relationship that has lasted over seven years", said Ed Kilroy, President, IBM Canada Ltd. "IBM will leverage its worldwide expertise of IT services to continue to help National Bank strengthen the infrastructure it needs to offer its customers state-of-the-art financial services. This agreement demonstrates our continuing leadership in delivering leading-edge products and services to our most valued customers."

Michel Labonté, 1st Vice President, Finance and Control, National Bank of Canada added: "We are very satisfied with our business relationship with IBM; it has allowed us to remain competitive. The renewal of our agreement represents a continuity with innovative tools as an added value, world-class expertise at competitive prices to increase reliability, accessibility and security, and the i-Team to accelerate the marketing of our products and services. All these assets make it possible for the Bank and our customers to welcome e-business transformation. Moreover, with IBM's worldwide expertise in the financial industry and with more than 6,500 employees in Quebec, IBM has a solid base here and is able to meet all our needs."

"IBM is very pleased to renew its strategic alliance with the National Bank", stated Denis Chalifour, Client Managing Executive, IBM Global Services (Canada). "Our partnership goes above and beyond the traditional supplier-customer relationship. In addition to leveraging the Bank's information technology systems, we will work closely together to foster innovation and set up mutually profitable business opportunities. That is the reality of business today: not only to serve your customers but also - and above all - to work together towards new business development".

About the National Bank

The National Bank of Canada is an integrated group that provides comprehensive financial services to its core market - individuals, SMEs and large companies, as well as providing specialized services to its other customers worldwide. The National Bank has assets exceeding $76B (CDN) and employs more than 17,000 people, including branch employees. Its shares are listed on the Toronto Stock Exchange (TSE).

About IBM

Recognized as a world leader in business solutions for the financial and banking industry, IBM is the largest IT consulting service provider in Quebec, based on revenues. IBM employs more than 6,500 Quebecers; 2,900 people are employed with IBM Global Services, providing a complete portfolio of IT solutions, from outsourcing to electronic commerce.

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