ESPOO, Finland, May 16, 2002 (PRIMEZONE) -- Today TietoEnator Oyj and AB Lietuvos Telekomas have signed agreements on the sale of part of Lietuvos Telekomas'stake in its IT service providing subsidiaries to TietoEnator. One of the joint ventures will provide IT-related consulting services and another will render processing and network services. Lietuvos Telekomas will be the main customer of both joint venture companies. This agreement is one of the first major outsourcing cases in the Baltic region.
According to the signed agreement, TietoEnator acquired 74 per cent of shares in Lietuvos Telekomas'subsidiary, UAB Baltijos Telekomunikaciju Konsultacinis Centras (the name is subject to changes in the future). The joint venture will provide companies in the Baltic region with high- value-added IT-related consulting services. The amount of personnel is planned to reach the level of about 50 employees. The expected annual turnover of the company will be in the starting phase around EUR 1,2 million (4 million Litas).
Lietuvos Telekomas also sold to TietoEnator 40 per cent of shares in its other subsidiary, UAB Baltijos Informaciniu Duomenu Valdymo Centras (the name is subject to changes in the future). The joint venture will provide IT infrastructure management services to Lietuvos Telekomas and other major companies in Lithuania and the Baltic region. Its personnel will consist of about 60 IT professionals. The expected annual turnover will be in the starting phase some EUR 1,5 million (5 million Litas).
Both joint ventures will start their activities on 1 June 2002.
"By establishing these joint ventures, Lietuvos Telekomas is seeking to achieve two main goals," emphasized Tapio Paarma, General Manager of AB Lietuvos Telekomas. "Our first goal is, by means of outsourcing, to efficiently reorganise corporate IT management. Such a model is successfully employed in Europe and, I think, it will shortly gain popularity in Lithuania as well. On the other hand, establishing joint ventures with TietoEnator, a well-known professional IT company in Europe, provides an opportunity for Lietuvos Telekomas to increase its revenue by further developing its activities and offering new services on the Baltic market. Our second goal is to provide IT services for all types of companies ready to further expand and improve their IT infrastructure and at the same time to use the latest telecommunications services."
By this partnership TietoEnator strengthens its position as one of the leading IT service providers in the Baltic region.
"The agreement between Lietuvos Telekomas and TietoEnator is not only important for the two parties, but also for the whole Baltic region as this is one of the first remarkable steps in the field of outsourcing IT management in the Baltic countries," said Timo Caven, Vice President Telecom & Media from TietoEnator.
For further information, please contact: TietoEnator, Timo Caven, Vice President Telecom & Media tel. +358 9 862 65500/+358 40 505 7303 TietoEnator, Leo Hoykinpuro, Vice President Processing and Network tel. +358 9 862 61909/+358 400 445596 AB Lietuvos Telekomas, Diana Rociene, Press Officer tel. +370 2 36 72 99
With almost 12,000 employees and annual net sales of EUR 1.1 billion, TietoEnator is a leading supplier of high value-added IT services in Europe. TietoEnator specializes in consulting, building and hosting its customers' business operations in the digital economy. The Group's services are based on a combination of deep industry-specific expertise and latest information technology. www.tietoenator.com
AB Lietuvos Telekomas (Lithuanian Telecom) is the largest telecommunications company in Lithuania. Main areas of the company's activity include fixed-line telephony services, network and data communication services, Internet-related services, wholesale services to other telecommunications operators and service providers as well as sales and maintenance of telecommunications equipment. According to the Law on Telecommunications and its Activity Licence, Lietuvos Telekomas is granted an exclusive right to install and provide fixed-line telephony services in Lithuania until 31 December 2002.
TIETOENATOR CORPORATION
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