PNX Phoenix It

RNS Number:8070W
Phoenix IT Group PLC
12 January 2006

12 January 2006





               UK Government Department desktop support contract



Phoenix IT Group is pleased to announce that it has successfully concluded its
contract negotiations with EDS Global Field Services for the provision of
desktop maintenance, deskside support and implementation services for a major UK
Government Department.



The contract runs from 1 January 2006 until 31 August 2010 and, whilst the
revenues will depend on volumes of activities, the experience gained to date
indicates revenues in 2006 of around #8m. The contract includes some phased unit
price reductions against certain activities in future years. This, together with
an anticipated technology refresh programme within the Department, is likely to
result in a further reduction of revenue from this contract in 2007.



The contract forms part of a new Framework Agreement that has been signed by
Phoenix and EDS Global Field Services to facilitate additional business and it
represents a significant strengthening of the partnership that has existed
between the companies for more than five years in the delivery of services to
customers such as BP and Aon.



Commenting on the signing of the contract, Nick Robinson, CEO, said:



"We are delighted to be working with EDS Global Field Services in the delivery
of services to this high profile Government account. Steve Ball (MD EDS Global
Field Services) and his team are highly experienced service professionals and
the cultural fit with Phoenix has been exceptionally high. We are confident that
the service to GFS will be maintained at the already high levels that have been
achieved."



Steve Ball, Managing Director of EDS Global Field Services commented "Phoenix IT
forms part of a longer term strategy within EDS GFS, which enhances our ability
to intercept new business in a swift and agile manner, by making use of a small
team of best value service providers to supplement GFS' service . This is
necessary because of the exponential growth in new business that we are
experiencing today."



END



Enquiries:-



Phoenix IT Group plc - +44 (0)1604 769000

Nick Robinson - Chief Executive

David Taylor - Group Finance Director



Financial Dynamics - +44 (0)207 831 3113

Giles Sanderson

Harriet Keen

Cass Helstrip






                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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