EDB and i-flex will offer a UNIX-based solutions package for Nordic retail banks. It will combine the core system components of i-flex's core-banking solution FLEXCUBE®, the world's No. 1 selling banking solution*, with platform independent branch systems, payment and card systems, self-service systems and other supplementary systems from EDB. The solutions package is planned for deployment during 2006/2007. EDB and i-flex will co-operate as preferred partners in the Nordic region and on a case by case basis outside this region. EDB will also explore i-flex's PrimeSourcing capabilities as an offshoring partner.

"Together with i-flex, EDB will offer a complete retail-bank solution in all Nordic countries. EDB has been the market leader in Norway for several years with a market share of approximately 50 percent. Over the last few months EDB has signed several contracts with market leading Swedish banks for banking solutions and software modules. The co-operation with i-flex strengthens our competitiveness in the Nordic market outside Norway and opens new growth possibilities for EDB," says Endre Rangnes, CEO, EDB Business Partner ASA.

Nordic retail banks outside Norway have traditionally developed their own in-house proprietary software solutions operated on mainframes. In recent years several banks have invested in standardised software components and solutions from independent software developers. EDB and i-flex expect several banks to start investments in new solutions over the next five years to reduce operating expenses and increase functionality and user friendliness of their systems. The Nordic banking market is estimated to have a potential value of approximately NOK 10 Billion (app. 1.5 Billion USD) in yearly revenues for software licences, application development and application maintenance**.

"This market is technologically very mature. We are pleased to team up with EDB to enable the use of the next generation retail processing platform to some of the global banking sectors most demanding customers. With EDB's technologically advanced solutions and strong market position, our joint offering can compete effectively in the Nordic Region," says V Senthil Kumar, CEO, i-flex solutions b.v.

EDB and i-flex entered in to this agreement after a thorough bench-mark study where EDB's existing banking solutions for Norwegian retail banks and leading global solution packages were evaluated by the IDC company Financial Insights. The bench-mark study was carried out together with one of EDB's larger retail bank customers. The study concluded that EDB's banking solutions are market leading globally in terms of functionality, and compared very well with other market leading solutions in the areas of technology, architecture and cost-efficiency in operations.

Based on this study, EDB has decided to continue to develop and support its existing core-banking solution for Norwegian retail banks for the foreseeable future. However the UNIX-based Nordic retail bank solution, the joint offering with i-flex, will be available as an alternative for EDB’s existing customers in Norway.

The study also found that Nordic retail banks expressed a preference for global suppliers for new core-banking solutions. After a careful assessment of potential partners, and supported by Financial Insights, EDB has chosen the established global market leader, iflex solutions, as its partner.

* FLEXCUBE has been ranked the world’s No. 1 selling banking solution for three consecutive years, 2002, 2003 and 2004, by the UK-based International Banking Systems (IBS).

** McKinsey analysis for EDB, based on open sources and IDC data, including in-house IT-spending on software in 2003.