LONDON and REDMOND, Washington, October 2 /PRNewswire/ --

- Industry leaders in software and services unite to deliver service 
creation initiative for the telecommunications industry.

LogicaCMG plc and Microsoft Corp. today announced that they have formed a
strategic relationship based on the strong commitment from both companies to
launch an initiative called "The Service Factory."

(Logo: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO )

The Service Factory is a new programme designed to establish and operate
a world-class service creation and delivery environment using proven partner
products alongside Microsoft(R) Connected Services Framework. In close
cooperation with LogicaCMG developers, partners, independent software vendors
and operators, an extensive set of innovative services will be developed
ready for deployment in a telco-grade environment. The Service Factory will
enable telecommunications companies to deliver innovative, converged services
with a consistent user experience across domains, and to embrace the Telco
2.0 concept by empowering network-based mashups.

The ability of operators to efficiently and cost-effectively develop and
deploy next-generation services is essential to the further development of
the industry. Microsoft Connected Services Framework is a server-based
software product that provides the foundation to aggregate, deliver and
manage different services, whether traditional telecommunications services
such as voice and data, web services or third-party content services. It
offers a network-independent, flexible service creation and delivery
environment that is accessible to one of the largest IT professional and
developer communities in the world.

As a long-term Microsoft ally, LogicaCMG has invested heavily in
Microsoft Connected Services Framework and will bring its extensive
telecommunications expertise to the relationship.

"The telecoms sector is under intense pressure, and operators are looking
for competitive advantage at every turn," said Thomas Breuer, managing
director of Telecoms and Media at LogicaCMG. "To do this quickly and remain
one step ahead of the competition on a global scale, operators are looking to
the larger IT suppliers for innovation and economies of scale. This
relationship between LogicaCMG and Microsoft offers exactly that. Combining
LogicaCMG's total service provision, global reach and more than 2,500
experienced professionals with Microsoft's proven pedigree and established
services will help operators get a much faster time to market for new
services."

"This is ultimately about enabling operators to prosper from the
significant changes happening across the Internet, IT and telecoms," said
Terry McGuigan, director of Global Partners, Communications Sector at
Microsoft. "By being able to rapidly develop and deploy innovative new
customer experiences, operators can transform their businesses. The Service
Factory aims to help our customers make the transition to Telco 2.0, reducing
not only time to market for new services but cost as well."

About LogicaCMG

LogicaCMG is a major international force in IT and business services. It
employs around 40,000 people across 41 countries. LogicaCMG's focus is on
enabling its customers to build and maintain leadership positions using
LogicaCMG's deep industry knowledge and its track record for successful
delivery. The company provides business consulting, systems integration and
IT and business process outsourcing across diverse markets including telecoms
and media, financial services, energy and utilities, industry, distribution
and transport and the public sector. Headquartered in Europe, LogicaCMG is
listed on both the London Stock Exchange and Euronext (Amsterdam)
(LSE: LOG; Euronext: LOG) and traded on the Xternal List of the Nordic
Exchange in Stockholm. More information is available at
http://www.logicacmg.com.

About Microsoft

Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in
software, services and solutions that help people and businesses realise
their full potential.

About Microsoft EMEA (Europe, Middle East and Africa)

Microsoft has operated in EMEA since 1982. In the region Microsoft
employs more than 12,000 people in over 55 subsidiaries, delivering products
and services in more than 139 countries and territories.

This material is for informational purposes only. Microsoft Corp
disclaims all warranties and conditions with regard to use of the material
for other purposes. Microsoft Corp shall not, at any time, be liable for any
special, direct, indirect or consequential damages, whether in an action of
contract, negligence or other action arising out of or in connection with the
use or performance of the material. Nothing herein should be construed as
constituting any kind of warranty.

Web site: http://www.microsoft.com
              http://www.logicacmg.com