RCG Information Technology to acquire OSPC during meeting with Philippines President Fidel Ramos

Business Wire, May 7, 1997

LOS ANGELES--(BUSINESS WIRE)--May 7, 1997--

Pacific Rim acquisition would address industry-wide labor

shortage crisis and increase company's ability to provide end-

to-end year 2000 solutions onshore and offshore

With Philippine President Fidel Ramos looking on, Robert Buttacavoli, president and chief executive officer of RCG Information Technology, approved an agreement in principle to acquire a majority interest in Manila-based Open Systems Philippines Corp. (OSPC). Terms were not disclosed.

Buttacavoli made the announcement yesterday during an Information Technology Trade Mission sponsored by the Philippine Department of Trade & Industry here. The meeting was attended by representatives from every information technology service provider in the Philippines and top-level representatives from business, media and government in the United States.

The purpose of the mission was to showcase the Philippines expertise in information technology and to position the Pacific Rim nation as a formidable alternative to other countries as a source of skilled computer technicians and programmers.

OSPC will retain its name, and Jojy Azurin -- president and chief executive officer of OSPC -- will continue in that position where he will focus on marketing OSPC's products and services.

The acquisition of OSPC will unite one of the Philippines leading technology systems integration companies with the Edison, N.J.-based RCG Information Technology, a global leader in providing cost-effective information technology solutions to Fortune 1000 companies and a specialist in providing end-to-end Year 2000 solutions. As a result of this transaction, RCG will substantially increase its offshore capabilities, generating more cost-effective Year 2000 conversion solutions for its clients.

"The synergism between OSPC and RCG should benefit everyone involved," Buttacavoli said. "Together, we can dramatically increase RCG's offshore capabilities, create even more jobs for the Philippines' talented labor force, and strengthen our ability to overcome the Year 2000 labor shortage. At the same time, we will be able to continue to offer state-of-the-art Year 2000 products, services and conversion capabilities to our customers in the United States and the Philippines.

"The signing of this agreement is a momentous occasion for RCG. With many members of our work force coming from the Philippines, we have always had great respect for the country and its citizens. For that reason, we are particularly delighted to have President Ramos with us today as we take the next step in our aggressive strategy to become a dominant player in the global information technology consulting business," said Buttacavoli.

"OSPC will provide cost-effective programming services for projects undertaken by RCG's regional offices in the United States," said Chuck McGlynn, a senior vice president of RCG and head of its fast-growing Year 2000 conversion practice. "While its initial focus will be on providing state-of-the-art the art Year 2000 project conversion solutions, OSPC also provides a full spectrum of mainframe and client/server technologies. Additionally, OSPC will be charged with expanding its local and Asian consulting business through the use of PeopleSoft and other leading edge technological expertise, thus attracting more global business to the Philippines."

RCG Information Technology, with revenues of $137 million in 1996, a team of 1,700 consultants worldwide and one of the most comprehensive employee training and development programs in the industry, experienced a 28 percent revenue growth over the prior year. OSPC, with 150 experienced consultants on staff, currently provides consulting and programming services to major Asian companies. Additionally the company works on large systems integration projects for such industry leaders as IBM, NCR, Citibank, Philippines Long Distance Company and government institutions.

"We are looking forward to increasing our role as a responsible corporate citizen. RCG has been active in the Philippines for the past 10 years," said Manny Rodgriguez, RCG's vice president for off-shore operations. "As a native of the Philippines, I am especially eager to begin working with OSPC and the Philippine government to attract more global business there."

RCG IT is a leader in providing information technology consulting services to Fortune 1000 companies. These services include product and application software development, complete Year 2000 products and services, software outsourcing, supplemental staffing, client server and emerging technologies such as SAP and PeopleSoft. RCG is a subsidiary of New York-based Reliance Group Holdings (NYSE:REL).

CONTACT: RCG Information Technology, Edison

John Heslin, 800/333-7816

or

Padilla Speer Beardsley Inc., New York

Richard Franco, 212/752-8338