Mobile Messaging Leader LogicaCMG Expects Formidable Messaging Growth in North America

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Mobile messaging leader LogicaCMG Telecoms expects formidable messaging growth in North America and points to a number of indications that the region is on the verge of a surge in text messaging volumes. LogicaCMG recently announced the sale of its Telecoms Products business to a consortium of private equity buyers, subject to employee consultation and regulatory approval. Once the transaction closes the Telecoms Products business will trade under the new brand, Acision (http://www.acision.com).

There's real potential that a mobile messaging scenario could exist in North America where a combination of entertainment, business, and consumer-driven SMS traffic spikes so rapidly it overwhelms unprepared networks. This is a pattern LogicaCMG has seen in other parts of the world

Mobile messaging leader LogicaCMG Telecoms expects formidable messaging growth in North America and points to a number of indications that the region is on the verge of a surge in text messaging volumes. LogicaCMG recently announced the sale of its Telecoms Products business to a consortium of private equity buyers, subject to employee consultation and regulatory approval. Once the transaction closes the Telecoms Products business will trade under the new brand, Acision (http://www.acision.com).

North American text messaging penetration, as well as traffic per user, continues to increase (Source: Portio Research). Based on both analyst and its own research, LogicaCMG is predicting that North American text messaging volumes will grow as much as 50 percent in 2007--a significant increase over previous years. The growth will be spurred by a dramatic increase in mobile-to-mobile messaging in addition to applications such as American Idol's audience voting and Starbucks' SMS store finder.

A worldwide leader in mobile messaging, LogicaCMG has seen similar developments in Western Europe and Asia-Pacific during the first years of this millennium. The combination of these factors resulted in an exponential growth in messaging demand and today, messaging revenues for operators in these regions typically run up to 30 per cent of total revenues. LogicaCMG has enabled successful messaging growth for 18 out of the top 20 worldwide data ARPU leaders by delivering high performance, high availability messaging platforms (source: Informa and LogicaCMG).

LogicaCMG projects that traffic in North America will be boosted even higher than in other parts of the world, because of the sheer size of its population and by better integration of SMS and instant messaging technologies--in which LogicaCMG is closely involved.

According to LogicaCMG, it is critical at this stage of the market that operators maintain an excellent user experience and prevent issues such as service unavailability caused by overload of messaging infrastructure.

"There's real potential that a mobile messaging scenario could exist in North America where a combination of entertainment, business, and consumer-driven SMS traffic spikes so rapidly it overwhelms unprepared networks. This is a pattern LogicaCMG has seen in other parts of the world," said Wayne Irwin, President, LogicaCMG Telecoms, North America. "In order to manage this kind of growth and maintain service levels, operators must scale up messaging capacity effectively and stay ahead of demand. In addition, they must maintain an uncompromised quality of service under extreme traffic peaks that occur during an event such as American Idol. LogicaCMG is the ideal messaging partner for operators in North America with the experience and expertise that we have".

LogicaCMG's latest SMSC offerings provide full interoperability with fixed and mobile Instant Messaging and processes messages at twice the speed, on industry-standard Intel Itanium based multi-core processing platforms.

As a mobile messaging leader with over 10 years of experience with SMS, LogicaCMG has worked closely with several mobile operators in the region to future-proof their networks. The company's array of messaging and payment system enhancements--including Message Plus and Advanced Rating--give mobile operators the ability to not just survive the coming SMS surge, but take full advantage of it. LogicaCMG Telecoms announced the "Friends, Family and Beyond" Advanced Rating data services at this week's CTIA Wireless 2007 show in Orlando.

About LogicaCMG

LogicaCMG is a major international force in IT and business services. It employs around 40,000 people across 41 countries. LogicaCMG's focus is on enabling its customers to build and maintain leadership positions using LogicaCMG's deep industry knowledge and its track record for successful delivery. The company provides business consulting, systems integration and IT and business process outsourcing across diverse markets including telecoms and media, financial services, energy and utilities, industry, distribution and transport and the public sector. Headquartered in Europe, LogicaCMG is listed on both the London Stock Exchange and Euronext (Amsterdam) (LSE:LOG; Euronext:LOG) and traded on the Xternal List of the Nordic Exchange in Stockholm. More information is available at http://www.logicacmg.com/telecoms.

Press contacts

Kevin Walters

Marketing Executive, North America

Tel: +1 972 246 5404

Email: kevin.walters @ logicacmg.com

Todd Van Hoosear

Topaz Partners

Tel: + 1 781-404-2409

Email: logicacmg @ topazpartners.com

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