BC Hydro and Accenture Plan to Offer Services to Utilities Throughout North America; Accenture Creates BC Hub for Delivery of a Range of Services.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--July 18, 2002

BC Hydro and Accenture (NYSE: ACN) today announced plans to offer a range of services to the utility industry throughout North America.

The services, to be delivered through a newly created entity, are expected to include customer relationship management, IT, human resources, financial and procurement services.

BC Hydro and Accenture have entered into a memorandum of understanding that will enable Accenture to establish the new entity and develop a service agreement with BC Hydro. The new entity is expected to employ approximately 2,000 employees and assume BC Hydro's Customer Services (including the development of a new Customer Information System), IT services provided by Westech, Network Computing Services, HR Services, Financial Systems, Purchasing, Disbursement Services, Property Services, Business and Office Services.

"This is the next step toward creating an entity that will maintain BC Hydro's mandates of providing exceptional customer service while decreasing costs," said BC Hydro Chair and CEO, Larry Bell. "When fully operational, the new entity will provide a broad scope of services to both BC Hydro and new external customers, providing significant growth and development opportunities."

"Accenture is committed to building a strong business in British Columbia that will contribute to economic growth and provide employees with expanded career opportunities," said Charles Filewych, a Vancouver-based partner in Accenture's Utilities practice. "The new venture is an important hub offering a broad range of outsourced service capabilities to BC Hydro and the North American utilities market, and will allow BC Hydro to better focus on its core business of generating, transmitting, and distributing electricity."

"Our clients in the utilities sector are under pressure to reduce costs while improving the level of service they provide to customers, all in an increasingly competitive business environment," said Mary Tolan, Group Chief Executive of Accenture's Resources Operating Group. "We believe that through the business we are building together with BC Hydro, we will provide a full suite of outsourced capabilities that will provide BC Hydro and our North American utilities clients with an immediate opportunity to reduce costs and receive higher quality of services in a number of important areas of their business."

Today's agreement is the result of the Request for Expressions of Interest that BC Hydro solicited from the private sector in October 2001. After reviewing 19 proposals, BC Hydro employees were informed that the discussions had narrowed to a single proponent, Accenture, on April 19, 2002. The final terms of today's agreement are subject to negotiation, due diligence and other customary conditions. The new entity is expected to be fully operational and begin serving clients by early calendar year 2003.

About BC Hydro:

BC Hydro and Power Authority is a provincial crown corporation, serving more than 1.8 million customers across the province of British Columbia, Canada. More than 80 per cent of BC Hydro's electricity is produced by hydroelectric generation on the Columbia and Peace River systems. The home of the successful demand-side management Power Smart program, BC Hydro is working towards a sustainable future by providing integrated energy solutions in an environmentally and socially responsible manner. BC Hydro's web site is www.bchydro.com, where you can find information related to this MOU.

About Accenture:

Accenture (NYSE: ACN) is the world's leading management consulting and technology services organization. Through its network of businesses approach -- in which the company enhances its consulting and outsourcing expertise through alliances, affiliated companies and other capabilities -- Accenture delivers innovations that help clients across all industries quickly realize their visions. With more than 75,000 people in 47 countries, the company generated net revenues of $11.44 billion for the fiscal year ended August 31, 2001. Its home page is www.accenture.com. Accenture has operated in Canada since 1989 and employs 1,200 people across the country.