July 11, 2008 10:00 ET

Thanachart and IBM Sign Two Billion Baht IT Outsourcing Agreement to Enhance IT Capacity and Facilitate Progressive Growth

BANGKOK, THAILAND--(Marketwire - July 11, 2008) - IBM (NYSE: IBM) and Thanachart Bank Public Company Limited (TBANK) today announced they have signed a two billion baht (approximately US$60 million) agreement for a seven-year information technology (IT) Outsourcing Services contract to enhance the bank's IT capacity, increase client satisfaction and address progressive growth with world class standards.

The agreement also covers the delivery of services to Thanachart Group including Thanachart Securities Public Co. Ltd., Thanachart Fund Management Co. Ltd., Thanachart Life Assurance Co. Ltd. and Thanachart Insurance Co. Ltd. The IBM agreement will provide TBANK with a more comprehensive delivery of IT Outsourcing Services including:

--  Data Center Services
--  Disaster Recovery Service
--  Server and Network Management
--  IT Security Operations

Mr. Vichit Yarnamorn, Director and Information System and Technology Advisor, Thanachart Bank Public Company Limited, said, "As a leader in technology and innovation, IBM has been chosen as our partner due to their insight and understanding of the specific requirements of the Thanachart Bank. In partnering with IBM, we firmly believe that our IT capability will be significantly improved to support our growing business.

"Our agreement with IBM will also help eliminate the high costs of in-house system development and allow for less time and workforce use in system maintenance. Outsourcing these IT functions will enable us to implement several business projects faster as well as ensure cost efficiencies. Most importantly, the IT Outsourcing is aimed at creating confidence and ensuring the bank's customers receive the highest satisfaction, as such our customers can be assured the information they give to the bank is well protected by efficient security systems."

Mr. Thanwa Laohasiriwong, Country General Manager, IBM Thailand Company Limited, said, "The banking industry in particular requires IT support with maximum reliability and professionalism. IBM has provided TBANK with hosting services since 2003 and we understand the environment and needs of TBANK well. We are very proud of being an active mechanism in TBANK's strategic growth."

"As the banking industry has become increasingly competitive, one of the key success factors involves technology utilization which responds to organizations' needs. IBM's IT Outsourcing Service's goal is to provide systematic improvement in work process and decrease procedures as well as to reduce costs for system development and maintenance which will enable the bank to utilize its time and resources in other areas of development. We believe that with our professionalism and worldwide network, IBM IT Outsourcing services will help Thanachart Bank achieve its business goal," said Mr. Dhanawat Suthumpun, Country Manger, Global Technology Services, IBM Thailand Company Limited.

The agreement was signed in March of 2008.

About Thanachart Bank

Thanachart Bank Public Company Limited (TBANK) is classified as a medium-sized bank with a total asset of Bt 309,866 million (as of April 30, 2008). The bank is ranked the 8th of 17 local Thai commercial banks. TBANK currently has 193 branches (as of July 10, 2008) providing comprehensive financial services to its customers including deposit service, corporate and personal loans, car hire purchase loan, securities trading service, mutual funds, insurance and life assurance. The bank is also Thailand's leader in the car hire purchase business.

Meanwhile, Scotiabank is North America's leading bank and one of Canada's most international banks. The bank has been in operation for 175 years with a total asset of USD 453 billion (as of April 30, 2008). With 2,000 branches worldwide and 60,000 employees in its network, Scotiabank provides financial services for 12.5 million customers in 50 countries around the world. The bank holds 24.98 percent shares in TBANK.

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