Letter of Intent Signed
Synstar PLC
4 December 2000
Synstar Announces its largest, new single
contract win for three years
Synstar plc is pleased to announce that it has entered into final negotiations
as a single bidder with Galileo International (NYSE: GLC), a leading provider
of global distribution services for the travel industry, with the intent of
signing a three-year, multi-million pound contract. Once executed, this
contract will be the largest, new single contract for Synstar in the last
three years and increases the group's exposure to the fast growing European
travel market.
Galileo has been a Synstar customer since 1998 and by extending its existing
European contract has strengthened its relationship with Synstar. With effect
from 1 April 2001, Synstar will provide Galileo with specialist maintenance,
installation and refurbishment services for over 2,000 customer locations in
the UK. This new three-year deal is in addition to an existing European
contract that covers IT services for Galileo in 11 other European countries.
That latter contract has also been extended for a further two years.
Galileo provides travel agencies, corporate travel managers and Internet users
with the ability to book travel by accessing schedule, availability and
pricing information for more than 500 airlines and all the major hotel chains,
car rental companies and cruise lines. Galileo attributes much of its
considerable success to the quality of its information technology systems.
Galileo's Data Centre in Denver, Colorado, handles 6,700 messages per second
during peak periods and a total of 255 million information requests each day.
According to Donna Neale, Galileo's director, Customer Service Delivery for
Europe, Middle East and Africa, 'The delivery of efficient, effective and
quality IT customer services and support throughout Europe is a critical
requirement at Galileo and one that drives our business. Synstar has
consistently demonstrated that it is able to support Galileo in these goals
and I am delighted that we have extended our relationship with Synstar.'
Richard Ferre, Chief Executive of Synstar comments: 'We are naturally very
excited by this new piece of business. It underlines the quality of the
relationships we build with our clients and the considerable potential for
further growth therein. We look forward to working closely with Galileo over
the next three years and beyond.'
For further information:
Synstar plc 01344 662700
Richard Ferre / Stephen Gleadle
GCI Financial 020 7398 0800
Roger Leboff / Nick Lambert / Geoff Callow
About Synstar:
Synstar International is a pan-European, independent provider of Business
Availability services. Business Availability is a full range of integrated
services and solutions in two principal areas: Computer Services and
Business Continuity Services. The Computer Services business offers hardware
and software support services for a wide variety of manufacturers' computer
products, desktop management services, storage management services, networking
and computer repair services. The Business Continuity Services business
offers comprehensive business continuity planning and consultancy and disaster
recovery services. Synstar has customers throughout the UK and Western Europe
and has been selected as a partner of choice to many leading brands in the
defence, telecommunications, utilities, banking, retail,
aerospace, public sector, and automotive industries.
Synstar has over 3000 employees with operations across Western Europe. Its
last reported turnover from 1999/2000 was £236 million. It is quoted on the
London Stock Exchange (Symbol: SYN). The Group's base is located at Synstar
House, 1 Bracknell Beeches, Old Bracknell Lane, Bracknell, Berkshire RG12
7QX. Tel: 01344 662700 Fax: 01344 662743.
GALILEO FORWARD LOOKING STATEMENT
Statements in this report that are not strictly historical, including
statements as to plans, objectives and future performance, are forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. The company has based
these forward-looking statements on our current expectations and projections
about future events. The company undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. These forward-looking statements are
subject to risks and uncertainties that could cause actual events or results
to differ materially from the events or results expressed or implied by the
forward-looking statements. You are cautioned not to place undue reliance on
these forward-looking statements. Risks and uncertainties associated with the
company's forward-looking statements include, but are not limited to: the loss
and inability to replace the bookings generated by one or more of its five
largest travel agency customers; its ability to effectively execute our sales
initiatives in key markets; its sensitivity to general economic conditions and
events that affect airline travel and the airlines that participate in its
Apollo(r) and Galileo(r) systems; circumstances relating to its investment in
technology, including its ability to timely develop and achieve market
acceptance of new products; its ability to successfully expand its operations
and service offerings in new markets, including the on-line travel market; its
ability to manage administrative, technical and operational issues presented
by its expansion plans and acquisitions of other businesses; its ability to
deliver to Galileo and to outside customers a new, Internet protocol-based
network as planned, and for the cost and within the time frame currently
estimated; the results of its international operations and expansion into
developing and new computerized reservation system ('CRS') markets and other
distribution channels, governmental approvals, trade and tariff barriers, and
political risks; the type and number of strategic alternatives, if any,
designed to maximize shareholder value as determined by our Board of
Directors; new or different legal or regulatory requirements governing the CRS
industry; natural disasters, security breaches or other calamities that may
cause significant damage to its Data Center facility; and its ability to
complete the transition to a new, Internet protocol-based network as planned,
and for the cost and within the time frame currently estimated.