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California's Attorney General Rescinds Oracle Deal

The state will avoid any future costs.

SACRAMENTO, Calif. -- Attorney General Bill Lockyer and other state officials announced late Tuesday that California's $95 million enterprise license agreement (ELA) with Oracle has been rescinded.

Under the terms of the agreement to rescind the ELA, 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 $95 million contract that had become controversial," said Attorney General Bill Lockyer, in a statement. "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."

The state entered into the Oracle contract in May 2001. In May 2002, 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.