BOSTON, May 12 /PRNewswire-FirstCall/ -- On Wednesday May 10, 2006, Keane, Inc. , a leading business process and information technology (IT) services firm, announced that the Board of Directors and Brian Keane had agreed that Brian Keane would step down as President, Chief Executive Officer and as a Director of the Company effective May 10, 2006.
In making this announcement, the Company reported that it had received employee allegations relating to Mr. Keane's personal conduct. Out of respect for the confidentiality interests of the individuals who had made the allegations and in accord with Keane's policies and legal obligations, Keane did not elaborate upon the allegations with respect to Mr. Keane's personal conduct.
Regrettably, certain inaccurate, incomplete and misleading information about those allegations has been published in the press based upon statements attributed to individuals who were not involved in the decision-making process and who may not have received complete information regarding the allegations. As a result, Keane is determined to clarify the situation while continuing to respect the confidentiality interests of the individuals who made the allegations.
One current and one former employee made allegations of sexual harassment against Brian Keane. The first of these employee allegations was sent to Brian Keane on April 25, 2006. These allegations were brought to the attention of Keane's Corporate Governance Committee last week. With the assistance of Keane's inside and outside counsel, including specially retained outside counsel, Keane's Board of Directors convened promptly and met extensively through the past weekend and into this week to review the allegations and determine an appropriate course of action that is in the best interests of Keane's shareholders.
Although Brian Keane denied that he had engaged in unlawful sexual harassment, he admitted to certain personal conduct, including conduct in addition to the matters that have appeared in the press. Brian Keane acknowledged and the Board concurred that this personal conduct reflected poor judgment. Based on this information, and other relevant considerations, the Board concluded that Mr. Keane could not continue to provide the leadership that Keane requires and that his continued service as CEO would not be in the best interests of the Company.
The Board negotiated a Resignation and Consulting Agreement with Brian Keane which was publicly filed on May 10, 2006. As a material part of that agreement, Mr. Keane agreed that a joint public announcement would be made concerning his resignation. Mr. Keane issued his own public statement that has contributed to confusion regarding this matter. Subsequent statements attributed to a Keane family member have caused the Company to set forth, with reluctance, additional information regarding the circumstances and reasons for the Board's actions.
At this point, Keane is attempting to reach a constructive resolution of the concerns raised by the current employee. The former employee has raised claims against Brian Keane.
Keane's Board of Directors is confident that the Company's Office of the President, experienced senior executives and outstanding employees will continue to focus on customers, successfully advancing the One Keane transformation initiative and the creation of shareholder value. Keane is determined to put the distraction caused by this unfortunate incident behind it and is convinced that the actions taken this week will expedite that necessary process.
About Keane
In business since 1965, Keane, Inc. is a leading business process and IT services firm. Keane delivers Application and Business Process Services to help clients transform their business and IT operations to achieve demonstrable, measurable, and sustainable business benefit. As a trusted advisor and partner for its clients, Keane solves real business issues through the development and implementation of cost-effective, change-oriented, industry-specific solutions.
Specifically, Keane delivers highly synergistic application and business process services, including Application Development and Integration Services, Architectural Services, Application Outsourcing, Program Management, and Testing, as well as Business Transformation Services including Business Process Outsourcing. Keane believes that business and IT improvements are best realized by streamlining and optimizing business and IT processes, implementing rigorous management disciplines, and fostering a culture of accountability through meaningful performance metrics. Based in Boston, Mass., Keane delivers its services throughout the United States, Australia, Canada, India, and the United Kingdom. For more information, visit http://www.keane.com/.
Safe Harbor for Forward-Looking Statements:
This press release contains a number of forward-looking statements concerning Keane's current expectations as to future growth and its results of operations. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," "estimates," "intends," "may," "projects," "will," "would," and similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward- looking statements, including: continued or further downturns in the US economy, political and economic conditions in India, the loss of one or more major clients, unanticipated disruptions to Keane's business, the execution and successful completion of contracts evidencing new bookings, the successful completion of software development or management projects, the availability and utilization rate of professional staff, and other factors detailed under the caption "Risk Factors" in Keane's Annual Report on Form 10-K for the year ended December 31, 2005, which important factors are incorporated herein by this reference. Keane disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release, including the potential impact of any future acquisitions, mergers, or dispositions it may make.
Contact:
Veronica Kido
Keane Public Relations
617.517.1390
Larry Vale
Keane Investor Relations
617.517.1290
