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IBM to extend network services capabilities

IBM to extend network services capabilities through acquisition of Logical CSI

Wellington -- IBM today announced it had acquired the Australian and New Zealand operations of network services integrator, Logicalis Group Limited, trading in New Zealand as Logical CSI. Logicalis and Logical CSI are divisions of the Datatec Limited company, which is listed on the Johannesburg Securities Exchange (JSE: DTC).

Logical CSI is a New Zealand market leader in the provision of network design, construction and maintenance services. Logical CSI has established a specialisation in the fields of IT network integration and next generation technologies, including IP telephony and voice over IP solutions.

Nick Lambert, Managing Director, IBM New Zealand said the acquisition gives IBM an increased skill set and value proposition for customers in New Zealand. “This acquisition significantly enhances IBM New Zealand’s ability to deliver world class network services and solutions to clients, the skills acquired will enhance the existing offerings of IBM Global Services in delivering integrated networking services and solutions.

“Logical CSI has built a reputation for delivering value to clients through a broad offering of best practice based network focused services and solutions. The market leadership position enjoyed by Logical CSI has been earned through hard work and a commitment to excellence in the delivery of truly world class solutions to their client base.”

IBM’s purchase of Logical CSI follows several strategic acquisitions over the past 18 months, including the local operations of Rational Software, Informix and PricewaterhouseCoopers Consulting.

"Logical CSI staff are delighted that IBM has acquired our company as a powerful addition to its network and infrastructure capabilities" said Murray Jurgeleit, CEO of Logical CSI. “The addition of Logical CSI’s skill set to IBM will allow IBM to boost the delivery of converged network infrastructure solutions to provide tremendous business value to its clients.”

The combination of this acquisition and industry leading alliances with Network Services providers – such as Cisco Systems, and Nortel Networks establishes IBM’s market leadership position in Network Services.

Logical CSI’s personnel and operations will join IBM Global Services.

About IBM Global Services IBM Global Services is the world's largest information technology services and consulting provider, generating record revenue and signings in 2003 of $42 billion and $55.5 billion, respectively. Some 180,000 professionals in more than 160 countries help clients integrate information technology with business value -- from the business transformation and industry expertise of IBM Business Consulting Services to hosting, infrastructure, technology design and training services. Leveraging IBM's unequalled scope and scale, IBM Global Services delivers integrated, flexible and resilient processes -- across companies and through business partners -- that enable clients to benefit from the on demand business model by saving money and transforming their businesses to be more competitive. For more information, visit www.ibm.com/nz/services

About Logical CSI Logical Networks was borne out of the acquisition of Anite Limited in June 1999 by the Datatec Group. Previous to this name change, Logical were also known in the New Zealand marketplace as Anite Networks, Cray Communications, Dowty Communications and Case Communications. Since it’s inception in 1986, Logical has been one of New Zealand’s largest IT network integrators. Logical was renamed Logical CSI in November 2002 following the acquisition of IBM business partner CSI. Logical CSI employs 165 staff at offices in Auckland, Wellington, Christchurch and Dunedin. For more information, visit: www.nz.logicalis.com

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