Bharti Retail and IBM Announce Strategic Collaboration for Enhanced Business and Customer Service Efficiencies

Partnership to Give Bharti Retail a Distinct Advantage by Providing On-Demand Scalable IT Services

NEW DELHI, INDIA–(EMWNews – August 25, 2008) – Bharti Retail Limited and IBM India (NYSE: IBM) today announced a wide-ranging ten year strategic partnership under

which IBM will provide technology and services that will enable the

consolidation, transformation and management of a comprehensive IT

infrastructure for Bharti Retail by IBM India. This collaboration is a

progression of an existing four-year relationship between the Bharti Group

and IBM. Further strengthening this relationship, Bharti Group’s retail

company, Bharti Retail will leverage IBM’s worldwide expertise in the

retail sector and introduce best practices and innovations to support

Bharti Retail’s business goals and enhance Bharti Retail’s competitive

advantage in a dynamic and competitive retail market.

Vinod Sawhny, President and Chief Operating Officer, Bharti Retail Ltd.,

said, “In a dynamic and fast evolving retail sector, Bharti Retail’s

association with IBM will provide a distinct competitive edge that will

assist the company’s vision and growth plans. Our partnership lays the

foundation on which future business functions can be supported in the

course of the next 10 years. This alliance is in line with Bharti Retail’s

efforts to be a customer-centric and trusted retailer.”

“We are delighted to further strengthen our relationship with IBM. The

creation of the IT Community of Practice with IBM in 2004 has led to one of

the fastest integrations of IT anywhere in the globe,” said Dr Jai Menon,

Director Bharti Airtel & Group CIO, Bharti Enterprises. “We look forward to

replicating the unprecedented success we have had with them in the telecom

sector by consolidating, managing and delivering business process

transformation that will drive innovation and enhance value for all Bharti

Retail customers.”

The current scope of the deal includes Project Management, Infrastructure

for Data centers, Applications, Security and Network, and Support for

End-user Services. The scope of work will keep evolving as Bharti Retail’s

business continues to grow. This partnership will provide Bharti Retail

with a differentiation in the market place including faster product to

market and cost efficiencies. Bharti Retail will also draw upon IBM’s

global expertise and innovations in programming like the automated

attendance terminals to help maintain a very low PC footprint

(approximately 1 PC per 30 employees). These efforts will link into the

core platform set up with technical support that Wal-Mart Inc. is providing

to Bharti Retail under the franchise agreement between the two entities.

“This is a strategic win for IBM which is a testament to the trust Bharti

places in IBM’s cross-industry capabilities. Our collaboration with Bharti

goes back over four years and our joint commitment to innovation throughout

our business relationship continues to pay off. Our goal is to ensure that

Bharti Retail has the support it needs to be a customer-focused retail

enterprise committed to delivering high value to their customers,” said

Ashish Kumar, Vice President, Client Services, IBM.

This partnership will also help Bharti benefit from IBM’s ability to

leverage a cross industry play across Telecom – Insurance – Retail in

providing ease of accessibility and differentiated service to Bharti

clients.

About Bharti Retail

Bharti Retail is a wholly owned subsidiary of Bharti Enterprises, one of

India’s leading business groups in India. The company has launched

neighbourhood stores in Punjab called Easyday and is expanding the chain

with multiple consumer friendly format stores in India. These stores are

100 percent owned and operated by Bharti. Bharti Retail provides consumers

great value with products at affordable prices, of great quality and a

wider choice.

About IBM

For more information on IBM, visit www.ibm.com/services.