OUT.L Regulatory News (OUT)

5 December 2014

Outsourcery plc

("Outsourcery" or the "Company")

Significant FTSE 100 Customer Win

- Initial three-year contract, generating £1.1 million of revenue, secured via key partner -

- Third FTSE 100 company now relying on Outsourcery services -

- First customer requiring new 'Official' accreditation -

Outsourcery (AIM: OUT), the leading Cloud Services Provider ("CSP") that helps organisations of any size to reduce costs, increase productivity and work better, is pleased to announce that a key channel partner has secured a significant contract win with a new FTSE100 end-customer. This represents the first end-customer to require Outsourcery's recently awarded Pan Government Accreditation (PGA) 'Official' (formerly IL2) accreditation for its O-Cloud platform.

Contract win

The contract win is expected to deliver £1.1 million of revenue over the initial three-year period. The contract is expected to generate £30,869 average monthly recurring revenue ("MRR") over the three years.

The solution roll-out will include Microsoft Lync instant messaging and presence, with a plan to migrate users from traditional telephony to enterprise voice services over time. The Lync solution is being deployed as the primary unified communications toolset for the end-customer, further demonstrating the increasing demand for cloud-based Microsoft Lync solutions among large enterprises. The end-customer required the solution to be 'Official' accredited: a capability that only Outsourcery can provide in the UK for such a cloud-based service. Outsourcery is in the process of completing the deployment of its new Secure O-Cloud (formerly IL3) platform for central government, which will significantly extend its public sector capability and revenue opportunity.

This new end-customer represents Outsourcery's third FTSE 100 customer. Upon completion it will mean that 48,500 individual end-users within three FTSE 100 companies will be reliant on Outsourcery's services. Additionally, the number of users from these end-customers is expected to grow during 2015. The vast majority of the end-users, secured via both direct and partner channels, will be using Outsourcery's full enterprise voice solution.

Commenting on the win, Outsourcery Co-Chief Executive Piers Linney said:

"I am proud that we can now count three of Britain's largest public companies as end-customers and look forward to working with our partners to add to that number as we prove our capabilities and extend our market leadership position. We are experiencing a growing pipeline, helped by our channel partners actively selling our portfolio of cloud services to meet demand from their customers. The large FTSE 100 end-customer announced today and secured through a key partner serves as evidence of that trend.

Outsourcery's differentiation in the marketplace is highlighted by this end-customer's requirement for the service to be accredited to 'Official' (formerly IL2). We will significantly extend our public sector offering of both infrastructure and applications with the coming launch of our Microsoft-validated Secure O-Cloud (formerly IL3) platform for central government."

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About Outsourcery

Outsourcery is a world-leading UK-based Cloud Services Provider (CSP), which aims to remove the need for organisations to own and manage on-premises IT, unified communications and conferencing applications and infrastructure.

Outsourcery offers hosted software applications (software-as-a-service(SaaS)), cloud infrastructure (infrastructure-as-a-service) and next generation unified communications and collaboration solutions, as well as connectivity and professional services to tailor and fully integrate solutions to meet the needs of customers, partners and the UK public sector alike.

Outsourcery's O-Cloud platform has been certified to run government classified information at 'Official' and 'Official-Sensitive' over the internet. This gives Outsourcery CESG Pan Government Accreditation (PGA) (formerly IL2) to meet data sovereignty and security specifications for the public sector.

Outsourcery was the first company outside of the US to be named Microsoft's worldwide 'Hosting Solutions Partner of the Year' and also the UK's first certified carbon neutral CSP. The business was named HP's Most Innovative Service Award 2013, UK Cloud Awards' Collaboration Product of the Year 2014 and SaaS Solution of the Year 2014 at the Storage, Virtualisation and Cloud Awards.

Outsourcery has 100 employees, with offices in Manchester, London and Leicester.

(www.outsourcery.co.uk/investors)

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