New outsourcing arrangement from LBG plc

28 January 2014

Communisis plc

("Communisis")

New outsourcing arrangement from Lloyds Banking Group plc

Leading provider of personalised customer communication services Communisis plc (LSE: CMS), announces the award of an important new outsourcing arrangement from Lloyds Banking Group plc ("the Group" or the "Bank") for in-bound imaging and mail processing services.

The arrangement is for an initial 10 year term, with a further 5 year renewal option, and will commence on 1 April 2014. The award is subject to a contract that is expected to be finalised by early March 2014.

Communisis will handle more than 30 million incoming documents from customers annually for the Bank, covering all brands within the Group, including Halifax and Scottish Widows. These documents will be scanned into a digital format, indexed and distributed to the relevant Bank department for onward processing.

Communisis will also take responsibility for the design of the Bank's forms for customer communications and internal operational processes.

The arrangement will see Communisis take on 14 existing sites in the UK, including the main operational centres in Edinburgh, Leeds and Andover. An announcement was made today to the relevant Bank employees and approximately 310 roles will transfer to Communisis under TUPE arrangements.

Today's award follows that of a previously announced, 10 year contract for the outsourcing of all of the Group's transactional communications. By combining the production of its out-bound transactional communications with the processing of its in-bound documents under the management of a single trusted partner, the Bank now has considerable scope for optimising its entire, end-to-end customer communication process.

Andy Blundell, Chief Executive of Communisis said:

"Communisis is very proud to have been awarded this second substantial outsourcing arrangement from Lloyds Banking Group. There is now a deep strategic partnership between our organisations and we can look to the long-term to help the Bank develop its business through optimised customer communication.

With this arrangement Communisis is effectively acquiring a new in-bound service capability; one that has relevance for other clients and offers considerable scope for further growth."

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About Communisis

Communisis is a leading provider of personalised customer communication services that specialises in helping clients communicate with their customers more effectively and more profitably in fast-changing markets.

Communisis has a reputation for production excellence and innovation and is trusted by many leading, consumer facing brands to design, produce and deploy multi-channel personalised customer communications accurately, securely, reliably and at scale.