London Metal Exchange Contract

26 March 2013

Xchanging plc

London Metal Exchange contract

Xchanging plc ('Xchanging'), the business process, procurement and technology services provider, announces that it is in discussions with The London Metal Exchange ("LME") that will lead to modification or termination of its existing contractual relationship with the LME. This situation reflects the change in ownership of the LME to the Hong Kong Exchanges and Clearing Ltd which completed in December 2012.

The LME contract carries a minimum notice period of 12 months. A further announcement to confirm the outcome of the discussions will be made in due course.

In December 2011, Xchanging announced the renewal of its contract to provide technology services to the LME. The contract, which renewed on 1 January 2012, was for a minimum of three years, with a two year notice period after the first year. The contract was expected to generate revenues of c. £75 million over its first three years. Under the terms of the contract, if there is a change of control at the LME, it is entitled to terminate the contract early with a 12 month notice period.

Xchanging understands that the decision to review the contract is due to strategic decisions taken by the LME's new owners, the Hong Kong Stock Exchange, and not in any way due to dissatisfaction with the service Xchanging provides.

Xchanging believes that cost savings in the business combined with other business initiatives will contribute materially to offsetting any loss of profit arising from the modification or termination of the LME contract. Management believes expectations on profitability will not change as a result of this announcement.

There will be a conference call for analysts to discuss this announcement at 9:30am on Tuesday 26 March. Conference call number is +44 (0)20 3147 4971, Passcode is 719835.

Enquiries

Xchanging plc Tel: +44 (0) 207 780 6999

David Bauernfeind, Chief Financial Officer

Alexandra Hockenhull, Head of Corporate Communications

and Investor Relations

Maitland Tel: +44 (0) 207 379 5151

Neil Bennett

Daniel Yea

Emma Burdett

About Xchanging plc

What we are 

Xchanging provides business processing, technology and procurement services internationally for customers across multiple industries.

What we do

Xchanging brings innovation, thought leadership and passion to its customers' businesses so as to enhance performance and value. Our values are embedded into everything we do.

What we want to be

Xchanging wants to be regarded as the best provider in its chosen markets by delivering services that are recognised for outstanding quality, reliability and innovation.

www.xchanging.com

Cautionary Statement: 

This announcement contains forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could, is confident, or other words of similar meaning. Undue reliance should not be placed on any such statements because they speak only as at the date of this document and, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and Xchanging's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements.

There are a number of factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are; increased competition, the loss of or damage to one or more key customer relationships, changes to customer ordering patterns, delays in obtaining customer approval or price level changes, the failure of one or more key suppliers, the outcome of business or industry restructuring, the outcome of any litigation, changes in economic conditions, currency fluctuations, changes in interest and tax rates, changes in raw material or energy market prices, changes in laws, regulations or regulatory policies, developments in legal or public policy doctrines, technological developments, the failure to retain key management, or the key timing and success of future acquisition opportunities or major investment projects.