CHERTSEY, U.K., May 7, 2002 (PRIMEZONE) -- Regus (Nasdaq:REGS) has today revealed details of a further 20 million pounds worth of new deals for outsourced global workspace, in the U.K., continental Europe and the Americas. This highlights the continuing trend in global office outsourcing. In addition, the company has done more than 15 million pounds of business with existing customers wishing to expand or extend their current Regus workspace.
Notable deals include a 7.5 million pounds contract with oil consortium AGIP/KCO in the Netherlands; Airbus Industries in Bremen; Sony in Brazil; Scania Finance at Milton Keynes; the Russian bank Globex in Moscow; and Royal & Sun Alliance in Chester. Norwich Union has renewed a major contract in Norwich. Separately, we announced a 100 million pounds global deal with Nokia - our largest ever - earlier this year.
In line with Regus' policy of discounting price for term, many of these deals are for longer periods of time and will therefore add significant strength to the company's record contracted forward order book rather than have an immediate impact on revenues.
Mark Dixon, chief executive of Regus, commented: "Changes in the global economic economy are making more and more organisations look at the structured outsourcing of office space in preference to long term conventional leases. Many of the deals we are doing now are for five years or longer, as organizations take advantage of the flexibility and long term cost savings they can make by outsourcing their workspace requirements to us.
"Serviced offices are now even more cost-effective for longer periods, for larger numbers of people and over a wider geographic spread, compared with five years ago, claims a new survey, entitled The True Cost of the Flexible Office, published by the Chartered Institute of Purchasing & Supply. The report highlights that serviced offices can provide an average saving of 78% in the U.K., over traditional property acquisition methods."
Note to editors
Regus is the world's leading operator of business centers, with more than 410 centers in 240 cities in 50 countries. Regus business centers provide businesses, both large and small, with access to fully equipped office workspaces on flexible terms. This minimizes their start-up costs when relocating or entering new markets and provides a cost-effective alternative to conventional property acquisition methods. With more than 90,000 office workspaces worldwide, Regus is also market leader in providing meeting rooms, conference and training facilities and public access videoconferencing studios.