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Tuesday, September 19, 2006

HPQ: HP and DIRECTV (DTV) Extend IT Outsourcing Contract for Seven Years, $500 Million

HP and DIRECTV, Inc. (NYSE:DTV) today announced a seven-year extension of their 12-year relationship with a new information technology outsourcing contract valued at approximately $500 million.

HP will continue to provide IT operations and application testing services designed to support DIRECTV’s ability to roll out new promotions and new services, acquire new customers and ensure they receive timely, accurate billing for the satellite television services they use.

“HP has been a strategic partner for DIRECTV since we were a start-up company,” said Dennis Fleming, vice president, Operations, DIRECTV. “HP’s technology, managed services and governance model will enable our IT to be agile enough to meet our business goals as we look to further grow our business and provide our customers with expanded satellite television programming and digital content.”

Specifically, HP will continue to provide support for DIRECTV’s billing and non-billing (customer relationship management) environments, including system integration and management, local area network (LAN) management, data center operations, release management, database support, application support, change management, capacity planning, disaster recovery and support for new technologies. The deal is expected to result in $100 million in savings – a 20 percent reduction in cost – for DIRECTV.

“It’s been an exciting partnership with DIRECTV as they’ve grown to become the nation’s leading satellite television service provider supporting more than 15 million customers,” said John Evers, vice president and general manager, Managed Services – Americas, HP. “We look forward to working side-by-side with DIRECTV to help ensure their IT systems are continuously able to support new initiatives and services as they grow their business even more.”

About DIRECTV, Inc.

DIRECTV, Inc., the nation’s leading satellite television service provider, presents the finest television experience available to more than 15.5 million customers through exclusive content, industry-leading customer service (which has surpassed cable for six years running) and superior technologies. Each day, DIRECTV subscribers enjoy over 250 channels of 100 percent digital picture and sound; exclusive programming and the most comprehensive collection of sports programming available anywhere including NFL SUNDAY TICKET™ and MLB EXTRA INNINGS™. DIRECTV (NYSE:DTV) also leads the digital television technology revolution with exclusives such as NFL SUNDAY TICKET SuperFan™, US Open Interactive and YES Network Interactive, and will soon have the capacity to offer over 150 channels in HD. DIRECTV is approximately 39 percent owned by News Corporation. For the most up-to-date information on the company, please visit www.directv.com

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