Croatian Telecom Chooses Convergys to Deliver Wireline Services to 2.5 Million Residential and Business Customers.

Business Editors, High Tech Writers

CINCINNATI & CAMBRIDGE, U.K.--(BUSINESS WIRE)--Aug. 27, 2002

Convergys Corporation (NYSE:CVG), the global leader in integrated billing, employee care, and customer care services, today announced a billing contract with Croatian Telecom (Hrvatski Telekom). The company has licensed Convergys' Geneva(TM) product to handle rating and billing for all of its more than 2.5 million residential and business wireline customers. Cap Gemini Ernst and Young (CGEY) will migrate Croatian Telecom's entire subscriber database from a legacy system to Geneva and manage the implementation.

Croatian Telecom, whose majority shareholder is Deutsche Telecom (NYSE:DT), is the only company in Croatia providing a complete range of communication services including fixed and mobile telephony, data transfer, and Internet access.

Eugen Schulz, Chief Services Officer and Member of the Management Board at Croatian Telecom, commented that the company had been looking for a billing solution that was designed for fast integration and a migration that would result in a single view of its entire customer database. "Geneva was the product that offered us a truly future-proof solution at an affordable price. Its proven open systems architecture permits easy integration with the company's other business systems and IT architecture and will allow us in the future to adapt faster and more efficient new business models, products, and services without needing to upgrade the software."

According to Stephen Newton, President of Convergys EMEA, the contract with Croatian Telecom is the second Deutsche Telecom customer win for Convergys in Eastern Europe and the company's sixth across the region. "Deutsche Telekom has been instrumental in transforming many Tier 1 operators in Eastern Europe into powerful economic forces within their own countries that can also compete with the threat from new mobile entrants. Croatian Telecom selected Geneva because it allows them to go to market quickly with innovative new products and services."

CGEY will integrate Geneva with AVAYA call centre software and with third-party CRM applications. The integration will be achieved using Vitria's BusinessWare enterprise application integration (EAI) software.

CGEY has worked with Convergys on a number of successful Geneva implementations, including Skypoint in Spain and Firstmark in France and Spain. The implementation for Croatian Telecom and the migration of the complete legacy database is planned for completion by the end of the year.

Geneva is a real-time, transaction-based, best-of-breed rating and billing module offering the performance required by major carriers handling large volumes of data. Geneva can bill for any service or combination of services.

Convergys' product line of highly scalable end-to-end billing products, pre-integrated application suites, and application modules enables communication providers to create fully integrated billing and customer care environments that are adaptable, reliable, and cost-effective. Convergys products are based on its proven and innovative Next Generation Framework, a component-based architecture that provides unsurpassed flexibility, investment protection, and support for convergent communication services.

About Croatian Telecom

Croatian Telecom (Hrvatski Telekom-HT) is a company with a solid business, included in global development through Deutsche Telekom, its majority owner. As one of the largest Croatian companies and the leading Croatian provider of telecommunications services, HT is oriented toward four major business segments: fixed telephony, mobile telephony, the Internet, and data transfer. Only HT provides the full range of telecommunication services in Croatia. The company achieves its goals through the accelerated installation of a modern, all-encompassing network of services that will enable further improvement in the quality of services. HT simultaneously maintains its market orientation and special focus on the user.

About Convergys

Convergys Corporation (NYSE:CVG), a member of the S&P 500 and the Forbes' Platinum 400, is the global leader in integrated billing, employee care, and customer care services provided through outsourcing or licensing. We serve top companies in telecommunications, Internet, cable and broadband services, technology, financial services, and other industries in more than 40 countries. We also provide integrated, outsourced, human resource services to leading companies across a broad range of industries.

We bring together world-class resources, software, and expertise to help create valuable relationships between our clients and their customers and their employees. This commitment is validated by the more than 1.5 million individual bills our software produces each day to support more than 120 million subscribers, and by the more than 1.7 million separate customer and employee contacts we manage each day, both live and via electronic interaction.

Convergys(TM) employs more than 44,000 people in 45 customer contact centers and in our data centers and other offices in the United States, Canada, Latin America, Europe, the Middle East, and Asia. Convergys is on the net at www.convergys.com, and has world headquarters in Cincinnati.

(Convergys, Geneva, and the Convergys logo are trademarks of Convergys Corporation.)