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Virgin Mobile USA and IBM Sign IT Services Agreement

July 4, 2008

Virgin Mobile USA, a national provider of prepaid and hybrid wireless plans, has signed a services agreement for information technology operations and new applications development with IBM.

The agreement will allow Virgin Mobile USA to enhance its technology capabilities and improve its product portfolio for new and existing customers by affording the Company access to IBM’s significant telecommunications industry experience and state-of-the-art IT resources.

Under the terms of the new services agreement, IBM will begin transitioning Virgin Mobile USA’s existing IT infrastructure and application suite into its own environment. Simultaneously and continuing over the course of the next five years, IBM will work with Virgin Mobile USA to develop new and differentiated wireless applications and service offerings. Specifically, IBM will provide Virgin Mobile USA with data center outsourcing and application management services including maintenance and development.

Virgin Mobile USA expects that, as a result of its new relationship with IBM, the Company will realize IT-related operational cost savings over the next five years, while amplifying the company’s competitive advantage in new product and service delivery.




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