XCH.L Regulatory News (XCH)

21 February 2012

Xchanging plc

BAE Systems signs new UK Procurement Contract

Xchanging plc ('Xchanging'), the business process and technology services provider and integrator, today announces that BAE Systems has entered into a new contract for its procurement services in the UK for a further period of three years following expiry of the current UK contract at the end of 2012.

The award of this contract follows the announcement in August 2011 of two significant contract wins, one with BAE Systems in North America, and a second with L'Oréal in Europe. Together with the new BAE Systems UK contract announced today, which will have a lower margin than the existing contract, these contracts are expected to contribute towards Xchanging's aim of re-generating profitable growth momentum.

Commenting on the new contract, Xchanging's CEO Ken Lever said: "In August 2011 we saw our procurement business make a step change with the addition of the two important contract wins. The new contract announced today will contribute significantly to this, enabling us to retain the benefits of scale as well as our core expertise and infrastructure in the important UK market. We have an extensive relationship with BAE Systems across three continents and this new contract will also support our wider relationship with this valued customer."

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About Xchanging

Xchanging is a business process and technology services provider and integrator specialising in Financial Services, Insurance Services, Technology and Procurement, with processing skills and capabilities applicable to other vertical industry and market sectors.

www.xchanging.com 

Cautionary Statement: 

This announcement contains forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could, is confident, or other words of similar meaning. Undue reliance should not be placed on any such statements because they speak only as at the date of this document and, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and Xchanging's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements.

There are a number of factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are; increased competition, the loss of or damage to one or more key customer relationships, changes to customer ordering patterns, delays in obtaining customer approval or price level changes, the failure of one or more key suppliers, the outcome of business or industry restructuring, the outcome of any litigation, changes in economic conditions, currency fluctuations, changes in interest and tax rates, changes in raw material or energy market prices, changes in laws, regulations or regulatory policies, developments in legal or public policy doctrines, technological developments, the failure to retain key management, or the key timing and success of future acquisition opportunities or major investment projects.