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Xansa PLC (XAN)

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Thursday 10 October, 2002

Xansa PLC

Re Contract

Xansa PLC
10 October 2002

10 October 2002

            Xansa announces major IT outsourcing contract with Boots

Xansa, the Business Consulting, Information Technology and Outsourcing company,
announces the signing of a major IT Outsourcing contract with Boots commencing 1
November 2002. The deal, with a potential value of £90 million over seven years
is initially underpinned by a minimum commitment of £54 million. It is expected,
over the lifetime of the contract, to deliver significant improvements in IT
development capability with savings of up to £30 million.

As part of this contract, more than 200 people from Boots' Information Systems
and Technology function, who currently have responsibility for all Boots'
central application development and support, will transfer to Xansa.  Located at
Boots' headquarters in Nottingham, this team is key to the development of new
processes and systems for Boots and will further enhance Xansa's retail sector

Xansa has been working with Boots since July 2001 on the  development of Boots'
future systems plans and under this IT Outsourcing contract, Xansa will now take
responsibility for the continuing support and development of these business
applications across Boots. The cost savings delivered by Xansa will be
reinvested by Boots in developing advanced IT solutions to further support the
delivery of retail excellence.

Steve Russell, Boots Chief Executive, said: "Information Systems are at the
heart of modern retailing. Building on Xansa's work to date, this deal gives us
further savings of up to £30 million over the next seven years. Last week we
announced the outsourcing of our IT infrastructure.  Once again we will channel
the savings from the Xansa business applications outsourcing contract into more
IT improvements to benefit our customers and the business."

Alistair Cox, Chief Executive of Xansa, said:  "This strategic partnership gives
Boots and Xansa the opportunity to further complement each others' strengths and
is a natural progression of the strong relationship already formed between our
businesses.  This contract will allow Boots to focus on developing and
delivering retail excellence and product and service innovation.  Xansa brings
proven expertise in designing and implementing advanced retail management
processes which will create value by enabling Boots to make step changes in its
retail capability whilst reducing costs.  We look forward to a long and mutually
beneficial partnership with Boots."

David Lister, Boots Chief Information Officer, said:  "We have been working
closely with Xansa over the last 18 months.  We were attracted by their
excellent track record in developing close and long running relationships with
large-scale organisations such as ours, and by their retail expertise.  They
have proved themselves excellent partners in the development of our future
systems plans.   Going forward, Xansa will now play a major part in helping us
deliver the on-going process and systems improvements we will need to support an
outstanding customer offer."



Steve Stratton                            Giles Sanderson, Financial Dynamics

Investor Relations Director, Xansa        Tel : + 44 (0) 20 7831 3113

Tel : + 44 (0) 8702 416181                Email :

Email :

Rosie Symons                              Francis Thomas

Public Relations Manager, Xansa           Head of Financial Media Relations

Tel:  +44 (0)1442 434088                  The Boots Company

Email:             Mobile: +44 (0) 7836 660 700

About Xansa

Xansa ( is a company that transforms the business capability of
its clients by harnessing knowledge of selected industries and business
processes with proven skills in applying technology.  Xansa has four key areas
of expertise: Business Consulting, Information Technology, Outsourcing and
Business Process Management, and operates in the UK, North America, Continental
Europe, India and Asia-Pacific.  The company is listed on the London Stock
Exchange under the code XAN.L.

About The Boots Company

Best known as the UK's largest pharmacy chain, the company also owns, develops
and markets consumer healthcare products in 130 countries around the world
through Boots Healthcare International. Among its best known brands are Nurofen,
Strepsils and Clearasil.

Boots retail operations continue to break new ground in health and beauty with
the recent introduction of wellbeing services from aromatherapy to laser eye
surgery.  The company's unparalleled product offer includes Boots brands and
exclusives such as Britain's top selling cosmetics range, No7, and the designer
haircare brand Toni & Guy.  In addition to its stores in the UK and Ireland,
Boots also operates in Thailand, Taiwan, The Netherlands and Italy.

                      This information is provided by RNS
            The company news service from the London Stock Exchange