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Bank of Bermuda Board Approves IT Outsourcing Plans

11 11 2002

Hamilton, Bermuda: 11 December 2002 - Bank of Bermuda today announces that its Board of Directors has approved the plan to outsource the Bank's IT applications, infrastructure and capital projects management. The Board has authorised management to conclude contracts with EDS and Cable & Wireless (C&W), subject to employee consultation and regulatory and immigration approvals.

Outsourcing these services will be a significant step forward for the Bank providing cost-effective access to the IT and technology that will be needed to support its business growth and development, while allowing management to focus on the Bank's core competencies.

The proposed twelve year contract with EDS is estimated to be worth $375 million and the proposed five year contract with C&W is worth approximately $20 million. It is anticipated that approximately 290 Bank of Bermuda IT employees would transfer to EDS.

The Bank expects negotiations with EDS and Cable & Wireless will conclude in the new year at which time further details will be announced.