Press Release

Under 10-Year, $1.45 Billion Pact, Accenture Business Services of BC Will Deliver Services to North American Utilities

VANCOUVER, British Columbia; February 28, 2003 – BC Hydro and Accenture (NYSE: ACN) today signed a ten year, $1.45 billion agreement designed to save BC Hydro customers $250 million and expand Accenture's ability to offer customer relationship management, IT, human resources, financial, procurement services, building and office management services to utilities across North America.

"This agreement makes it possible for BC Hydro to continue delivering the world-class customer care our ratepayers expect, while at the same time significantly reducing our costs and dramatically increasing our operational efficiency," said Larry Bell, Chair and Chief Executive Officer of BC Hydro. "With the contractual obligation to deliver the same or better customer service and cost savings of $250 million over ten years, this is a terrific opportunity for the BC economy, consumers, employees and both companies."

Accenture will form Accenture Business Services of British Columbia Limited Partnership, with more than 1,500 former BC Hydro employees. BC Hydro will become the first customer of Accenture Business Services of BC, outsourcing its Customer Services (including the development of a new Customer Information System), IT services currently provided by Westech, Network Computing Services, HR Services, Financial Systems, Purchasing, and Building and Office Services.

"Utilities throughout North America are under pressure to reduce costs while improving the level of service they provide to customers, all in an increasingly competitive business environment," said Mary Tolan, Chief Executive of Accenture's Resources Group. "Accenture Business Services of BC will become the cornerstone of our ability to offer clients an immediate opportunity to reduce costs and receive a higher quality of services in a number of important areas of their business."

North American utilities currently spend approximately $58 billion annually on the non-core services that Accenture will offer and Accenture Business Services of BC will deliver.

"Accenture is committed to building a world class operation in British Columbia, that will contribute to the province's economic growth and provide employees with expanded career opportunities," said Dave Seibel, Country Managing Director of Accenture Canada. "The BC Hydro employees who will move to Accenture Business Services of BC bring with them valuable knowledge and skills in all the areas of service we will offer. With this agreement, Accenture now has 3,800 employees in seven Canadian cities: Vancouver, Edmonton, Toronto, Mississauga, Ottawa, Montreal and Fredericton.

Today's agreement is the completion of a process begun with a Request for Expressions of Interest that BC Hydro solicited from the private sector in October 2001. In April 2002, after BC Hydro reviewed 19 proposals, it announced to its employees that the discussions had narrowed to Accenture. The final terms of today's agreement were reached after a negotiation and due diligence process that began on July 18, 2002. Accenture Business Services of BC will begin operations this spring.

"I have spent the last several months, traveling around the province meeting with the employees who will be joining Accenture Business Services of BC," said John Icke, president of Accenture Business Services of BC. "I have been very encouraged by their warm reception and positive perspective on this tremendous opportunity. I am confident that together we are going to build a world class business services company."

About Accenture

Accenture is the world's leading management consulting and technology services company. Committed to delivering innovation, Accenture collaborates with its clients to help them realize their visions and create tangible value. With deep industry expertise, broad global resources and proven experience in consulting and outsourcing, Accenture can mobilize the right people, skills, alliances and technologies. With more than 75,000 people in 47 countries, the company generated net revenues of $11.6 billion USD for the fiscal year ended August 31, 2002. Its home page is www.accenture.com.

Accenture has operated in Canada since 1989 and employs 3,800 people across the country. www.accenture.ca

Accenture serves 90 percent of the Fortune 500 utility companies in North America and 60 percent of the major utilities worldwide. Accenture outsources the customer management systems for five utilities in North America, representing a customer base of 10 million. Accenture has implemented more than 100 customer management systems for utilities. These systems support more than 170 million customer relationships around the world.

About BC Hydro

BC Hydro and Power Authority is a provincial crown corporation, serving more than 1.8 million customers across the province of British Columbia, Canada. More than 80 per cent of BC Hydro's electricity is produced by hydroelectric generation on the Columbia and Peace River systems. The home of the successful demand-side management Power Smart program, BC Hydro is working towards a sustainable future by providing integrated energy solutions in an environmentally and socially responsible manner. You can find information related to this agreement at www.bchydro.com.

• Read the Backgrounder  [PDF, 21 Kb].
• View the Presentation  [PDF, 346 Kb].

Contact:
Jim McAvoy
Accenture
Phone: 604 646-5000

Contact:

Stephen Bruyneel

Director, Corporate Communications and Public Affairs

Phone: 604 623-4344

stephen.bruyneel@bchydro.com