Thursday, March 13, 2008

Convergys Corporation Acquires Shanghai Hong Xun Software Co., Ltd. To Expand The Customer Service Management Offerings

March 13, 2008

(Cincinnati and Shanghai; March 13, 2008) - - - Convergys Corporation (NYSE: CVG), a global leader in relationship management, announced today it is expanding the set of customer service management offerings available to its clients through the acquisition of Shanghai-based Shanghai Hong Xun Software Co., Ltd. from BMI Asia Inc. The privately-held company is the first in the Asia Pacific region to create next generation business management software focused on the specific and specialized needs of providers who seek to offer and manage a myriad of services to their subscribers.

The acquisition will be neutral to Convergys’ 2008 earnings and is expected to be accretive in 2009.

BMI’s highly scalable architecture empowers a single implementation of its software to support tens of millions accounts and thousands of concurrent users in the entire range of telecom technologies including wireline, wireless, data (broadband and ADSL), cable, and satellite. In addition, next generation and value added services such as VoIP, SMS, Video-On-Demand, GPRS, and MMS can be introduced seamlessly. BMI’s software currently supports 30 million subscribers across multiple regions at China Netcom. With over 110 million subscribers, China Netcom is the second largest fixed-line operator in China.

"This small and very strategic acquisition will help Convergys clients effectively serve their customers and will accelerate our product strategy in customer management solutions, specifically providing CRM and self-care capabilities,” said Bob Lento, president of Convergys’ Information Management line of business. “This acquisition also shows Convergys’ strategic commitment to expand into and serve the 700+ million wireless and wireline subscribers in the Asia Pacific region. This is the fastest growing global market with $39 billion in revenue and 20 percent annual growth rate in the wireless market.”

The acquisition will enable Convergys to

• meet the needs of our new and existing clients to enter, compete, and/or grow successfully, and to extend our presence in the rapidly expanding China market

• offer new and existing Convergys clients an expanded solution footprint, specifically web self-care, service provisioning, workflow processing, resource management, workforce scheduling, and inventory reservation. This is a gateway for further expansion of the highly-successful Infinys [R] customer care, rating and billing solution.

• add a high quality, cost-effective software development center and development methodology that will ensure our clients always have available cutting-edge technology and the latest customer relationship solutions

BMI Asia, founded in 2000, has about 70 employees and is based in Shanghai, China. The acquisition is expected to close early in the second quarter and is subject to the normal conditions of closing.

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