ANDERSEN CONSULTING & CAIXA CATALUNYA DEVELOP NEW MGNT. MODEL.

Andersen Consulting, the world's largest management and technology consultancy, and Caixa Catalunya, Spain's third-largest savings bank, have created a long-term strategic technology alliance to manage the bank's information systems.

The value of the seven-year outsourcing agreement is estimated at 30,000 million pesetas (approximately US$200 million).

Under the alliance, Andersen Consulting will work with Caixa Catalunya to develop a new management model for information technology and systems, which will provide the highest level of information technology services to all Caixa Catalunya business units. Specifically, Andersen Consulting will:

(1) collaborate with the management team of Caixa Catalunya's information technology function to establish and oversee the strategic direction of the organization's technology infrastructure, including identifying opportunities for implementing new technologies;

(2) provide technology resources on an as-needed basis to meet Caixa Catalunya's fluctuating business application demands; and

(3) establish with Caixa Catalunya a jointly owned company, Informacio i Tecnologia de Catalunya (ITC), which will become the provider of information technology and business process management services for the bank. Informacio i Tecnologia de Catalunya will be responsible for planning, developing and implementing Caixa Catalunya's business applications, providing a flexible and cost-effective resource for the bank's information technology needs.

"This agreement demonstrates Andersen Consulting's willingness to partner with clients to help them achieve success in today's ever-changing marketplace," said Steve Racioppo, managing partner-Financial Services, New Business Models at Andersen Consulting. "Working together, we're providing Caixa Catalunya's businesses with an engine for transformation. As market conditions fluctuate, Caixa Catalunya will have access to the appropriate level of information technology resources and support -- adding resources during periods of high demand and reducing resources during low demand."

Andersen Consulting has been working closely with Caixa Catalunya since 1992 to help the financial institution reduce costs, enhance service and support the bank's broad business functions -- not only in traditional banking products, but also in products and services such as insurance policies, pension plans, securities and investment funds.

This work has leveraged Andersen Consulting's New Banking Architecture, which enables the creation of integrated banking solutions to support all major functions of a diversified financial institution. Andersen Consulting's New Banking Architecture draws upon the firm's knowledge capital and leverages its skilled professionals to streamline business processes, create custom IT solutions and manage large-scale organizational change. A key component of these solutions is the Altamira software, which is currently in use by more than 75 financial institutions in 20 countries.

By partnering with Andersen Consulting, financial services clients have achieved benefits that include: access to world-class business and information technology professionals, improved operating efficiency, enhanced sales capability and more effective risk management.

Caixa Catalunya is the third-largest savings bank and the eighth-largest bank in Spain. As of September 30, 1998, Caixa Catalunya had total assets of 3,259,196 million pesetas (US$21.73 billion), with customer deposits of 2,372,772 million pesetas (US$15.82 billion).

Andersen Consulting's Financial Services practice serves hundreds of clients around the world through three industry segments: Banking, Insurance and Health Services. The Banking segment serves, among others, retail, investment and commercial banks; investment management firms; securities firms; depositories; and exchanges. The Insurance segment serves property & casualty insurers and life insurers. The Health Services segment serves a wide range of healthcare organizations, integrated healthcare providers, health insurers, managed care organizations and policy-making authorities.

Andersen Consulting is a $6.6 billion global management and technology consulting organization whose mission is to help its clients change to be more successful. The organization works with clients from a wide range of industries to link their people, processes and technologies to their strategies. Andersen Consulting has more than 63,000 people in 46 countries. Its home page address is http://www.ac.com.

For more information, call 212/708-5106.