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Xansa PLC (XAN)

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Thursday 29 September, 2005

Xansa PLC

Re Contract

Xansa PLC
29 September 2005

29 September 2005

                Boots expands outsourcing partnership with Xansa

            Contract extension valued at £26 million over two years

Boots Group plc, the UK's leading health & beauty retailer, and Xansa, the
outsourcing and technology company, are pleased to announce a £26 million
extension and expansion of their IT outsourcing relationship. This agreement
extends the original seven year outsourcing agreement, which was signed in 2002,
by a further two years to 2011.  The extension will result in an additional £26
million to Xansa, over and above the initial £90 million contract signed in
2002, and provide the platform for cost savings to the Boots Information,
Systems and Technology operation.

Having worked closely in partnership with Boots since 2001, Xansa initially
provided applications management services.  In 2002 Boots outsourced its
Information, Systems and Technology to Xansa covering all Boots' central
applications development and support.

Xansa will continue to provide application support and maintenance to all areas
of Boots' business from the Head Office, through the supply chain to store based
applications.  Through the partnership Xansa also continues to provide
applications development, programme and project management, application
architecture and business consulting services.

Building on this partnership, Xansa and Boots have also now signed a contract
revision that expands Xansa's scope of responsibility to incorporate a Boots
Advantage Card service, enabling further cost savings through its unique
integrated delivery model.

Commenting on the announcement, Rob Fraser, IT Director, Boots said:

"I am delighted that the new expanded relationship with Xansa provides a spring
board that will enable further business benefit, and cost savings for the Boots
IS&T operation.

Commenting on the announcement, Paul Bateman, Group HR and Operations Director,
Boots said:

"Xansa complements our core values of trust and expertise.  The partnership
allows us to do more while creating more focus and resource to allow us to do
what we do best - serving our customers."

Commenting on the announcement, Alistair Cox, Chief Executive of Xansa said:

"We are delighted to extend our relationship as a trusted partner to Boots. Our
relationship has been expanded to include the applications process for the Boots
Advantage Card.  This business process outsourcing service uses our integrated
offshore delivery capability and includes the applications management of the
supporting IT systems.  We continue to work with Boots and other major UK
retailers to address not only the needs of the back-office but also the
lifeblood of the retailer - their stores. We are committed to providing
retailers with IT and business process improvements that free up cash and
resources to allow them to do more for their customers, store operations and
supporting their supply chain."



Gordon Stuart                               Giles Sanderson, James Melville-Ross

Finance Director, Xansa                     Financial Dynamics

Tel : + 44 (0)8702 416181                   Tel : + 44 (0)20 7831 3113

About Xansa

Xansa is the outsourcing and technology company. Committed to delivering
guaranteed business outcomes through a combination of technology and process
expertise, Xansa gives its clients the freedom to do more with their business.
Strong relationships, commercial innovation and an integrated Indian delivery
capability ensure that Xansa drives real and long-term cost reductions,
performance improvements and new ways of working tailored to each client. The
services Xansa provides are Business and Technology Consulting, IT
Implementation, IT Outsourcing and Business Process Outsourcing. Head-quartered
in Reading, Berkshire, Xansa is listed on the London Stock Exchange (LSE:XAN)
and has over 6800 people in the UK and India.

About Boots

Boots is the UKs leading health & beauty retailer and is one of the best known
names in the UK.  It employs 68,000 people, owns world famous brands and sells
products in 130 countries.  Boots's commitment to serving customers means it is
constantly offering fantastic products, at great value, through expert people.

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