(Oslo, 25 November 2013) EVRY has entered into an agreement with DNB to extend the current framework agreement for delivery of IT services. The existing framework agreement expires on 31 March 2014, and has now been extended to 31 December 2016. The extension of the agreement represents estimated contract value for EVRY in excess of NOK 2.0 billion.

EVRY is one of a number of suppliers that are still in negotiations with DNB for a new contract for the mainframe operation of core systems. A final decision in respect of these negotiations is expected around year end 2013/2014.

In parallel with the extension of the framework agreement, EVRY has received notice from DNB that DNB plans to use a different supplier for deliveries related to a new infrastructure agreement for non-mainframe services.

In the period to 30 September 2016, EVRY`s mainframe business volume will be virtually unchanged from the current level. This will be the case regardless of the outcome of the negotiations currently in progress. Other infrastructure services currently provided by EVRY will run down successively, and it is likely that conversion will take place over a period of 12-18 months starting after 1 April 2016.

The framework agreement that is being extended also includes significant deliveries in the areas of application solutions, information services and card services. These represent IT services that were not included in the competitive bidding process. Accordingly, DNB will continue to be one of EVRY`s largest customers in the years ahead.

New contract structure

EVRY intends to start work on adjusting to the new contract structure with immediate effect, and this will result in cost reductions. EVRY estimates that the non-recurring expenses that will be incurred in connection with these changes will be in the order of NOK 100 million, with the main effect seen in the second half of 2014 and in 2015. The new contract structure will affect around 300 full-time equivalent positions at EVRY. Based on its experience from earlier restructuring processes, EVRY anticipates that a significant proportion of the reduction in headcount will take place through normal staff turnover and internal job mobility.

In view of the extended agreement and planned cost savings, EVRY does not expect the new contract structure to have an adverse affect on its earnings in 2014 or 2015. In 2016, EVRY`s earnings related to its customer relationship with DNB will be NOK 50 million lower than in 2013 as a result of the new contract structure.

EVRY`s revenue from DNB will remain virtually unchanged in 2014 relative to 2013. Deliveries that are not to be continued will be affected by a successive run-down starting in the first quarter of 2015, which is expected to result in annual revenue in 2015 being NOK 200 million lower than in 2014. Similarly, annual revenue in 2016 is expected to be NOK 400 million lower than in 2015.