Kesko becomes major customer of TietoEnator

Kesko becomes major customer of TietoEnator TietoEnator Corporation has today signed an agreement with Kesko Oyj to take a majority holding (80 %) in Tietokesko Oy. TietoEnator plans to take management responsibility for the joint venture on 1 June 2001. The objective of both owners is to develop Tietokesko into a company better able to produce professional IT and operating services for Kesko's business operations. The deal also includes an agreement under which Kesko will sell its holding in Tietokesko (20 %) to TietoEnator by the year 2010. The acquisition is expected to generate approximately FIM 1.4 billion (235 ME) in additional revenues for TietoEnator during the next five years. Tietokesko Oy's net sales in 2000 totalled approx. FIM 232 (approx. 39 ME) and the company currently has 170 information technology professionals. The purpose of the new joint venture is to strengthen Tietokesko and safeguard the information technology knowhow and resources needed by Kesko in Finland and abroad. The experience and resources of TietoEnator, which specializes in IT services, will achieve synergy benefits in both application and operating services, as well as higher productivity and cost savings. The deal will strengthen TietoEnator's partnership role in the retail sector, giving TietoEnator over 500 IT employees in retail operations in the Nordic countries. TietoEnator's main retail customers include SOK and Alko in Finland, and Åhléns and Apoteket in Sweden. Kesko is one of Finland's leading wholesale and retail chains with net sales of FIM 37,503 million (6,308 ME) in 2000. Kesko is currently implementing major structural and operational changes including the incorporation of its four retail businesses as well as chain renewal, international expansion and e-commerce development. Information technology is central to this process. In the short term Kesko also plans to revise the operative systems underlying its business areas. All Tietokesko's employees will continue in their current positions. The implementation of Kesko's extensive changes will require considerable recruitment of new people to Tietokesko. The new joint venture will give Tietokesko's IT professionals access to the personal development and career opportunities offered by an international IT services corporation. The joint venture will also take on eight employees from K-linkki Oy, which produces IT services for K traders. Further information: TietoEnator Corporation, Director Pentti Heikkinen, +358 9 862 60780, mobile +358 400 438611 TietoEnator Corporation, Director Pekka Hirvonen, +358 9 862 62341, +358 400 600085 TIETOENATOR CORPORATION DISTRIBUTION Helsinki Exchanges Stockholm Stock Exchange Principal Media ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/03/30/20010330BIT00030/bit0002.doc http://www.bit.se/bitonline/2001/03/30/20010330BIT00030/bit0002.pdf