Brazil's Telecommunications Growth, MCI WorldCom Merger
Spur Capital Investment
EXPO COMM '98 - SAO PAULO, BRAZIL - November 3, 1998 --
SHL Systemhouse, MCI WorldCom's (NASDAQ: WCOM) global
information technology company announced here today that Systemhouse,
together with its partners Equifax, AG Telecom and Socma Americana,
are making an additional US$9 million investment in Proceda
Systemhouse, their joint venture that delivers systems integration
and outsourcing services to the Brazilian market.
Citing the size and strength of the Brazilian marketplace,
particularly in the telecommunications sector, along with MCI
WorldCom's majority stake in Embratel, Systemhouse characterized
the investment as a further vote of confidence in Proceda and the
Latin American economy.
"We are making this investment for the same reason we began
working with Proceda some four years ago, and acquired a 33 percent
stake in the company two years ago," said Ian McLaren,
president, Canada, UK and International, SHL Systemhouse. "There
is tremendous potential here in Brazil for an experienced and capable
outsourcing company like Proceda. It's particularly true at this
time as recent large scale developments in the telecommunications
industry have dramatically increased the size and shape of the
technology world."
SHL Systemhouse parent MCI WorldCom now operates nationwide
networks in the largest telecommunications markets in Europe, North
and South America and recently purchased controlling interest in
telecommunications provider Embratel, Brazil's leading data and
Internet service provider. Embratel also has Latin America's
largest fiber optic network and Brazil's only nationwide
network.
"The potential here is similar to that in Canada where
Systemhouse is working with the country's leading Internet
service provider, UUNET, another subsidiary of MCI WorldCom, to
deliver one-stop shopping to our customers for both their information
technology and communications requirements," McLaren added.
"It is certainly the way of the future and a marvelous
opportunity for Proceda and for Systemhouse."
Systemhouse and Proceda have worked successfully together for the
past two years to implement Systemhouse's Enterprise Management
(SEM) solutions. As a result, Proceda has broadened the products and
services it offers to Brazilian businesses, and is now providing SEM
services to major clients including Villares, a leading manufacturing
company based in Sao Paulo. Proceda has also been able to leverage
Systemhouse relationships with suppliers and business partners,
notably Primus and Tivoli, which provide additional advantages in the
Brazilian market.
"If one looks at Proceda's proven and growing presence in
the financial services sector -- an area of traditional strength for
Systemhouse -- and the Brazilian telecommunications market, which is
expected to explode to US$30 billion in less than five years,
today's announced investment represents another strategic step in
creating a powerful Pan American resource for computer services and
communications," McLaren concluded.
In his keynote address earlier today at ExpoComm
'98/Networld+Interop, McLaren noted the current global trend
toward the convergence of data and telecommunications industries and
the benefits for organizations that leverage it by becoming network
enterprises. Describing this convergence as the union of
"cyber" and "fiber," McLaren noted the
competitive advantage available to companies who remove the
boundaries of the traditional closed office to extend information and
application access outward - to remote workers, customers, suppliers
and strategic partners.
With annual revenues in excess of $50 million (U.S.), Proceda
Systemhouse is one of the largest computer services companies in
Brazil. Owned by SHL Systemhouse and partners Equifax, AG Telecom and
Socma Americana, Proceda employs approximately 350 professionals and
operates branches throughout the country, including a full data
communications network. Major U.S. multinational clients include The
Chubb Insurance Co., Ford Motor Co., Alcoa and Purina.
Brazilian-based clients include key financial and insurance companies
such as: Unnisa and Vitel, organizations that provide credit card
transaction processing for major financial institutions like Banco
Real; Vera Cruz and Golden Cross insurance; and banking concerns like
Cacique, Multiplic, BMG and BicBanco.
SHL Systemhouse, The Network Enterprise CompanySM, is MCI
WorldCom's global information technology services company. SHL
Systemhouse is one of the industry's only single-source provider
of convergence products and services that leverage the combined
telecommunications expertise of MCI WorldCom and the computer
expertise of SHL Systemhouse to enable businesses' total
networking, communications and consulting needs. The company has 120
offices and approximately 9,400 professionals worldwide. With a
comprehensive suite of network enabled IT solutions and services for
the new millennium, SHL Systemhouse serves major corporate, mid-sized
and public sector clients throughout North and South America, Europe
and Asia.
EDITOR'S NOTE:
For more information about SHL Systemhouse, visit the SHL
Systemhouse website at http://www.systemhouse.mci.com
