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Den Haag, 5-9-12

Royal KPN N.V. (“KPN”) and Tech Mahindra announce today the start of an international partnership in order to further improve KPN’s efficiency and effectiveness in its IT environment and operational processes and to jointly address strategic growth areas. KPN expects to make savings of at least EUR 200 million over a 5-year period with the partnership. As part of its ‘Strengthen, Simplify and Grow’ strategy for the period 2011 - 2015 KPN has set out a clear ambition on cost leadership and acceleration of its FTE reduction program. This new partnership helps to realize both ambitions.

Through this partnership, KPN and Tech Mahindra aim to achieve:
- Strengthening of business models;
- Simplifying and enhancing KPN’s IT environment and operational processes;
- Growing KPN’s and Tech Mahindra’s revenues by addressing strategic growth areas by means of combining capabilities and portfolios to create new joint offerings

As a first step in this partnership, KPN and Tech Mahindra have signed a five-year contract for development and support of over 150 applications in the operational IT systems of KPN NetCo segment. As a second step, KPN and Tech Mahindra will thoroughly explore and determine future projects in the newly set up partnership.

KPN Chief Strategy, Innovation & Technology Officer, Erik Hoving: “In addition to the technological leadership and innovation that Tech Mahindra has in the Telecom industry, we see natural synergies between our two organizations which we believe are critical to build a lasting partnership.”

Managing Director of Tech Mahindra, CP Gurnani: “KPN is a leading player in The Netherlands and is in the midst of its accelerated investment strategy which gives Tech Mahindra significant opportunities to use its transformation solutions. Furthermore, we envisage a mutually beneficial partnership that aligns well with ours and KPN’s growth objectives over a longer term period.”

KPN is the leading telecommunications and ICT provider in The Netherlands offering wireline and wireless telephony, broadband and TV to consumers and end-to-end telecom and ICT services to business customers. In Germany and Belgium, KPN pursues a Challenger strategy in its wireless operations and holds number three market positions through E-Plus and KPN Group Belgium. KPN provides wholesale network services to third parties and operates an efficient IP-based infrastructure with global scale in international wholesale through iBasis.

Tech Mahindra is a leading global systems integrator and business transformation consulting organization, focused primarily on the telecommunications industry. With an array of service offerings for Telecom Service Providers, Telecom Equipment Manufacturers and Independent Software Vendors, Tech Mahindra is a chosen transformation partner for several leading wire line, wireless and broadband operators in Europe, Asia-Pacific and North America. Tech Mahindra has a global footprint through operations in more than 31 countries with 17 sales offices and 15 delivery centers. Assessed at SEI CMMi Level 5, Tech Mahindra's track record for value delivery is supported by over 42,500 professionals.