Newsrelease

April 6, 1999
Edmonton, Alberta

Province finalizes sale of PSC shares

The Province of Alberta has sold its 40 per cent stake in PSC Payment Systems Corporation for $2.55 million, Treasurer Stockwell Day announced today.

The deal to sell the province's shares to IBM subsidiary ISM Information Systems Management Corporation was finalized on March 31, 1999. PSC was formed in December 1994 with a $1 million cash infusion from ISM and a contribution of software from the province. No provincial money was invested.

The sale price was deemed fair by a valuation review done by the accounting firm of Deloitte & Touche. This review considered a number of issues including the province's entitlement to royalties in determining fair value.

Terms of the sale also require PSC to maintain its mainframe operation, plus data and processing centres in Edmonton for as long as it is under contract to the province. The Edmonton operation is recognized as an IBM national centre of excellence.

The province currently has a five-year, $8.2 million per year contract with PSC for financial, payroll, and human resource processing services that expires in 2002. The contract is guaranteed until July 2000. After that, it's subject to annual quality assurance reviews.

For further information, please contact:

Shannon Taylor
Director of Communications
Alberta Treasury
(780) 427-5364

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