ERG Group today announced it has teamed with T-Systems International, a division of Deutsche Telekom, for upcoming transit fare collections tenders in Germany, Austria and Switzerland.

The new consortium is actively working on the anticipated tender in Berlin, where ERG and T-Systems successfully completed a smart card trial in 1999. The trial involved 31,000 passengers using buses, trains and trams, and met or exceeded all expectations of the customer.

The parties have agreed to work together on all opportunities in the German market and to be preferred partners for any large contracts in Austria and Switzerland. A share of the work responsibilities for the expected projects has been agreed, with ERG’s MASS (multi-application smart card solution) system to form the basis of the technology offering. ERG’s technology offers a proven back-office processing system in a transit fare collection environment. T-Systems will provide its considerable project management and system integration experience to the consortium as well as its experience with electronic fare collection in Germany.

ERG’s Chief Executive Officer, Mr Peter Fogarty, said “This relationship with T-Systems ideally positions ERG in the rapidly emerging German smart card fare collection market.

“T-Systems’ key strengths are a perfect fit with the technology offerings of ERG. Their significant local presence and financial backing make them an ideal partner.”

BACKGROUND INFORMATION

ERG Group

The ERG Group is a world leader in the development and supply of integrated fare management and software systems for the transit industry, and for its smart card systems and services. The Group has installed systems in major cities throughout the world including Hong Kong, Melbourne, Rome, San Francisco and Singapore with installations in progress in Gothenburg, Seattle, Stockholm, Sydney and Washington DC. ERG has delivered systems that support more than 20 million smart cards in circulation and handle approximately 5 billion transactions per annum. ERG is an Australian-based company, listed on the Australian Stock Exchange and employs 800 people in 11 countries.

About T-Systems

T-Systems is one of Europe’s leading providers of information and communications technology (ICT). Within the Deutsche Telekom group, T-Systems is responsible for serving major business accounts. The company has some 42,000 staff on its payroll in more than 20 countries. In 2002, the solutions provider generated €10.5 billion* in sales.

T-Systems’ solutions improve the business competitiveness of its customers in the industry sectors of telecommunications, services and finance, public and healthcare as well as manufacturing. For its customers, the company optimises processes, cuts costs and improves earnings, making targeted use of industry expertise and cutting-edge technology.

Its services range from the integration of new ICT solutions into existing customer systems, through the implementation and operation of desktop systems, data centers and networks, all the way to telecommunications services and solutions for international carriers.

For more information about the company and its services, visit http://www.t-systems.com.

(* T-Systems’ 2002 German GAAP total revenues of €11.3 billion as adjusted to the new accounting treatment of its agency business implemented on 1 January 2003. The adjustment reduces T-Systems’ net revenue by approximately €820 million. For further information, please refer to “Reconciliation to new structures” on p42 in Deutsche Telekom’s 2003 First Quarter Report at http://download-dtag.t-online.de/englisch/investor-relations/4-financial-reports/interim-reports/2003_q1.pdf).