FUJ00079189 - Email from John Bennett to Adrian King; Alan Gibson; Andrew Boswell and others re: Acceptance of ICL Pathway Contract

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Rush Yvonne

FUJ00079189
FUJ00079189

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Bennett John (TO fel0152)
27 September 1999 13:09 :
Adrian Kingi~ UMG ICL; Alan Gibson,
ICL; Boswell Andrew; Palk David; Teague David; Colquhouit Fidtia; Davisorr Jatin; Todd
Keith; Marie-Anne Van Ingen MA tec0103 ICL; Hartnell Nigel; Christou Richard; Hacking
Robin; Scott Rod; Escudier Tim; Yurino Toshio

ACCEPTANCE OF THE ICL PATHWAY CONTRACT

Mail has. the following body parts:

Body 1: #118#

99sep472.doc 27.09.1999 12:39 20992
ICL Pathway Memorandum

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Date:
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The EMC

Anna Campopiano

John Bennett

27 September 1999

The Completion of Acceptance of the ICL Pathway Contract

FUJ00079189
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Iam delighted to confirm the completion of Acceptance: the second stage has been successfully
finalised by the signing of the second Supplemental Agreement on 24 September 1999.

We can now move from any period of uncertainty and recognise that we have a system where the
development and implementation is fully endorsed by our customer.

The completion of Acceptance means that:

National roll-out formally starts immediately. Building on the nearly 600 post
offices already installed we will have installed another 1000 or so before we cease
work in support of the Post Office’s Christmas work load in éarly November 99

We recommence roll-out in late January 2000 and will quickly reach the rate of 300
post offices per week. Implementation is planned to complete in Spring 2001.

We have achieved our milestone payment in Q2 for £68m — one of the largest single
payments ICL has ever received from a customer

We are on track for the second milestone payment in Q3 of £80m (based on the
implementation of 1600 post offices by November 1999). At the request of our
customer there will be a prolonged Christmas break. The Post Office has made this
request as they want to be fully reassured that our rectification plans (especially
those involving the software delivery) are fully stable before their Christmas busy
period and settled before the full beat rate commences in 2000.

Both milestone payments make a substantial contribution to ICL in terms of
revenue, cash and profit

Acceptance has been a tough process — but the good news is that it is behind us and no-longer a
barrier to further developing positive, working relationships with the Post Office.

Regards

John Bennett

P/ICLPcomms/internalcomms/accepatance/eme