TeleComputing to Restructure

TeleComputing (OSE:TCO), one of the world’s first ASPs and a leading supplier of Microsoft Windows-based computing services that extend from the server to the desktop, announced Friday (Jan 19) that it will restructure the company into four profit and loss (P&L) business centers.

The move is intended to bring a higher level of focus and financial accountability to its ASP Services businesses and to its recently announced Service Provider Software (SPS) initiative. The SPS entity will license the company’s TECOS (TeleComputing Engineering Configuration and Operations Superstructure) software product and provide related consulting and implementation services to other next-generation application service providers, including traditional ASPs, telcos, and other entities.

“I believe strongly in the importance of having the right financial controls and clear objectives in place to carefully monitor, manage, and grow the business,” said Jason Donahue, TeleComputing president and CEO. “With this rigorous P&L structure, TeleComputing is positioned to capitalize on past investments and provide the latest in technology advances to our customers. This new structure should provide the necessary foundation upon which to grow an impressive multinational services and technology company.”

The four P&Ls include a Norwegian and Swedish P&L, with Jan Erik Larsen as managing director of the Nordic region and of the Norwegian ASP Services business; a U.S. ASP Services business with Alex Hawkinson as SVP; and the Service Provider Software (SPS) unit.

Other officers of the new organization include Jason Donahue as CEO and president, Garrett Pettingell as CFO, Jeff Hagins as chief technical officer, and Chuck Manula as SVP of HR and Corporate Services. Additionally, Jon Schultz will continue to serve as corporate counsel, and Henning Olset will serve in the role of Corporate Investor Relations.

Management believes that the new structure will empower the Norwegian, Swedish and U.S. ASP Services businesses and give local managers more authority to make decisions, while holding them accountable to local budgets and other performance metrics. The SPS business will focus on productizing and licensing TECOS, on providing integration and implementation services, and on implementing the unique TeleComputing methodologies and processes on a consultative basis.

The restructuring into four individual P&Ls will result in better financial reporting, which will allow the management team to respond faster to local market conditions and dedicate resources more efficiently across the company. Further, by restructuring, TeleComputing expects that it will improve its internal business processes, particularly in its U.S. businesses.

With the organization now divided into four business units, the head of each organization will be supported through dedicated financial and organizational resources and will report directly to Donahue. The restructuring strengthens TeleComputing by allowing all four P&Ls to leverage the company’s reputation as a leader in the ASP industry, while broadening the service offering portfolio to include global SPS solutions.

In an effort to fully align its skill sets with the needs of each of the P&Ls as part of the restructuring, TeleComputing has made some minor adjustments in certain positions, including a small number of separations, additions and new openings. Generally speaking, TeleComputing endeavored in these changes to streamline corporate overhead, and to better equip the P&Ls to achieve their financial targets.

Founded in Norway in 1997, TeleComputing helps manage Information Technology costs and complexity, while improving accessibility, reliability and security for its customers worldwide. From three secure data centers, TeleComputing supports customers in more than 200 locations in Scandinavia and

the U.S., each accessing a variety of applications from their desktops for a fixed monthly fee. The Company has locations in Norway, Sweden and the U.S. with approximately 200 employees and seven offices.

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