Attorney General Bill Lockyer Announces Rescission of $95 Million Oracle Enterprise License Agreement

July 23, 2002
02-083
FOR IMMEDIATE RELEASE
(916) 324-5500

(SACRAMENTO) - Attorney General Bill Lockyer and other state officials today announced the rescission of California's $95 million enterprise license agreement (ELA) with Oracle. Under the terms of the rescission agreement, the state is relieved of any further financial obligations, including all associated interest and fees, under the ELA.

"Today's agreement serves California taxpayers and successfully meets the state's objectives by rescinding a controversial $95 million contract," said Attorney General Bill Lockyer. "Oracle and Northrop Grumman were under no obligation to help California by rescinding this contract, and we appreciate their cooperation and willingness to rescind the ELA."

"We are pleased with Oracle and Northrop Grumman's assistance in unwinding this contract," said Clothilde Hewlett, interim director of the Department of General Services. "Their efforts to return the state to the conditions that existed prior to the ELA made it possible to avoid any additional financial burden to the state. We will adopt the best practices in information technology to serve the people of the State of California. Towards that end we look forward to working with companies like Oracle and Northrop Grumman to meet California's future technology needs."

The state entered into the Oracle contract in May, 2001. In May of this year, the state entered into negotiations to rescind the contract. The state's negotiating team included representatives from the Attorney General's Government Law Section, the Department of General Services, and the Department of Finance.