Middlesex, UK, Aug. 17, 2004 (PRIMEZONE) -- 17 August 2004
BSkyB begins legal action against EDS for deceit, negligent misrepresentation and breach of contract
British Sky Broadcasting Limited, the leading provider of digital television services in the UK and Ireland, together with its subsidiary, Sky Subscribers Services Limited, (together "BSkyB") filed today a claim for a material amount against Electronic Data Systems Limited and Electronic Data Systems Corporation (together "EDS"), the information technology services provider, in respect of deceit, negligent misrepresentation and breach of contract. The claim relates to EDS' former role as a supplier of services to BSkyB as part of the Group's investment in Customer Relationship Management (CRM) software and infrastructure.
In summer 2000, BSkyB appointed EDS to design, build and implement an advanced customer service system at its customer contact centres in Livingston and Dunfermline, Scotland. The relationship was terminated in early 2002 after EDS failed to perform its contractual obligations. Sky Subscribers Services Limited assumed direct responsibility for systems integration following the termination of the relationship with EDS.
Since summer 2000, the Group has invested approximately GBP170 million in its CRM project. This investment relates to software, technical infrastructure, systems integration and refurbishment of BSkyB's contact centres. As announced on 4 August 2004, the Group expects to invest GBP50 million over the next four years as it brings the current CRM project to completion in the near future and continues to maintain leading-edge customer service systems to support its growing customer base.
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Note to editors:
BSkyB is represented in this action by Herbert Smith and by Mark Howard QC of Brick Court Chambers.
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